List of Brokers with MFSA Regulation
The Financial Services Authority of Malta (MFSA) is the sole regulator for financial services activities in Malta which regulates and oversees credit and financial institutions, investments, trusts and insurance businesses as well as houses the state Register of Companies. The MFSA is a fully autonomous public body and reports to Parliament annually.
Established | : | 2002 |
Country | : | Malta |
Website | : | https://www.mfsa.mt |
Total Brokers | : | 6 |
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What does MFSA regulated mean?
Being regulated by MFSA (Malta Financial Services Authority) means operating under the standards of a Maltese financial regulator. The MFSA is an independent institution that reports directly to the Malta Parliament. It was first introduced in 1988 and later underwent some major changes in 1994, 2002, and 2014.
Since MFSA comes directly under the MiFID deirectives, all forex brokers authorized by the agency are able to operate in the entire EU and offer their services to investors from across Europe. Apart from that, MFSA also took over the regulatory responsibilities of the Central Bank of Malta to watch over the performance of various financial firms.
MFSA regulated brokers are required to hold an operating capital of at least €730,000. They are also expected to periodically submit detailed reports of audit for all financial transactions. Experts and professional employees are needed to ensure that the company's shareholders consist of those with previous experience in the forex markets.
In addition, brokers are required to have an independent chairman who has expertise in the market to have the needed authority over other shareholders so they can't indulge in financial malpractices. Forex brokers in Malta are prohibited to act as market makers; all client transactions should be delivered to the interbank exchange through approved liquidity providers. Last but not least, brokers under the MFSA are only allowed to partner with entities authorized by the agency.
What is the main purpose of MFSA?
- To regulate and supervise the Maltese financial services industry.
- To manage Malta's registry of companies.
- To issue licenses subject to an initial assessment.
- To inspect licensed institutions on a regular basis to ensure compliance with recent regulations.
- To protect clients' and investors' interests.
- To keep investors informed with local and global developments in the financial industry.
- To encourage financial companies to provide a service of the highest possible standard.
- To work on initiatives that will improve the standard of education and training for those involved in the financial services industry.
- To improve existing legislation and create new legislation should it become necessary.
- To issue guidlines and directives to the financial services industry.
- To communicate with national and international organisations in regard with the financial industry.
MFSA has the right to inspect regulated companies to ensure their compliance with all the guidelines in the financial markets. Despite being recognized for its liberal approach in supervising financial firms, MFSA has worked with all parties to ensure a good and sustainable financial system. They are not keen on imposing penalties and sanctions for lack of compliance, but severe and repeated financial violations may prompt the MFSA to act accordingly.
Additional FAQ
What is the regulatory status of forex trading in Nigeria?
Online trading in Nigeria is currently unregulated, while offline forex trading is well-regulated. This regulatory contrast is due to the differences like these two markets.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
How did Russian forex regulation become very strict?
The first official effort to regulate the industry began in 2004 through the establishment of Federal Financial Markets Service (FFMS/FSFR). After the agency's disbandment in 2013, the Central Bank of Russia took over supervising Russian forex brokers.
In 2015, the Central Bank of Russia launched far stricter law enforcement. Forex brokers were given a January 2016 deadline to obtain licenses from CBR, or abstain from carrying out their services in the region. Since then, CBR only granted licenses to a handful of brokers.
Continue Reading at Best Forex Brokers in Russia
What are the regulations for online forex trading in Nigeria?
When it comes to online trading regulation, the ambiguity of laws in Nigeria contrasts with other African countries that have already implemented regulations. For example, South Africa's Financial Sector Conduct Authority (FSCA) and Kenya's Capital Markets Authority (CMA) have already regulated online forex brokers in their countries. Furthermore, South Africa has even established rules for forex trading taxation.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
What are the regulations for offline forex trading in Nigeria?
The foreign exchange transaction activity in the offline market is supported by law. Some of these include the Central Bank of Nigeria Act of 1958, the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act of 1995, the Exchange Control Act of 1962, the Banks and Other Financial Institutions Act of 2007, and the Investments and Securities Act of 2007.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
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