MFSA Consultation on Amendments to the Investor Compensation Scheme Regulations issued under the Investment Services Act
The Malta Financial Services Authority (MFSA) today issued a consultation document in relation to the Investor Compensation Scheme (the Scheme). The MFSA is proposing amendments to the Investor Compensation Scheme Regulations to achieve greater consistency between the current regulations and the Investor Compensation Scheme Directive 97/9/EC. The closing date for the consultation process is 5th December 2016. The proposed amendments propose that all investment firms falling within the scope of the Investor Compensation Scheme Directive 97/9/EC would be required to participate in the Investor Compensation Scheme. This would apply to all firms holding a Category 1, 2 and 3 investment services license under the Investment Services Act but not Category 4 firms.
The proposed amendments indicate the replacement of the current fixed & variable contributions. The current fixed contribution amount should be the minimum amount of contributions being €3,000 for Category 1 & Category 2 Investment Services Licence Holders and €18,000 for Category 3 Investment Services Licence Holders.
The proposed amendments are also suggesting that the financial provisions of the Scheme be harmonised with those of the Depositor Compensation Scheme.
