The Malta Financial Services Authority (MFSA) has issued an updated version of Chapter 1 of the Financial Institutions Rulebook (FIR/01), which came into effect on 14 October 2025.
This update follows a consultation process launched earlier in August 2025 and is part of the MFSA’s ongoing work to strengthen Malta’s regulatory framework for financial institutions.
Clearer Authorisation Process
The revised Chapter 1 sets out clearer rules and procedures for anyone applying for authorisation to operate as a financial institution, including payment institutions and e-money institutions, under the Financial Institutions Act (Cap. 376 of the Laws of Malta), hereinafter referred to as the ‘Act’.
It covers, among other areas:
- the types of activities covered by the Act,
- the authorisation process and requirements,
- obligations for exempted entities, and
- the procedures for modifying, surrendering, or ceasing a licence.
The MFSA has also published two annexes to support applicants:
- Annex I lists the information required when applying for authorisation, such as business plans, governance details, and ICT and risk management arrangements.
- Annex II sets out how to calculate the minimum professional indemnity insurance (PII) or comparable guarantee required for payment initiation and account information service providers.
Why It Matters
These updates aim to make the licensing process more transparent, efficient, and predictable, helping firms better understand what is expected of them.
Effective Immediately
The new Chapter 1 and its annexes apply from the date of publication, thus from 14 October 2025.
How CLA Malta Can Help
At CLA Malta, we help financial institution applicants navigate the MFSA authorisation process with clarity and confidence – from preparing applications to liaising with the regulator.