Malta and MFSA explained. You will know “what Malta is” with this article.
When you hear a brokerage firm based in Malta and licensed by MFSA, some investors might think “that regulation is a minor one and the companies based in such offshore country cannot be fully trusted…”.
Well it may not be really true.
In fact, “Malta” is now gaining popularity by many financial companies from all over the world.
“Malta” explained generally
Malta is a country in Europe, as an island. It is a Parliamentary Republic with a strong democratic tradition. The country is also a member of the European Union.
Malta is especially recognized as “the place to setup business” because of the following reasons.
- Economic policies are much liberal than other developed countries’.
- Their economy is opened internationally.
- The business environment is accepted by multi-national companies.
- Legal and taxation framework are recognized as modern internationally.
“Malta” is “Offshore” for many businessmen in the world and setting up virtual companies in there is very popular in these years.
But isn’t setting up an offshore company for tax reason illegal?
Well, “evading” taxes and “avoiding” taxes are 2 different things. “Avoiding” taxes, is one legal and smart move for companies in many countries.
What about the “virtual offices”? Can a broker with virtual office be trusted at all?
It depends. Many brokers disclose their office address in Malta and also the addresses of other offices. You can also find out the details of the company and registrations by referring to the website of MFSA.
There are now over 150 companies which provide financial services in Malta.
Malta is recognized as the next “Frontier”
Let’s see how the world thinks of “Malta”.
According to the “Global Financial Services Index” published by the City of London, Malta is ranked 4th as “the financial center most likely to increase importance in the next coming years”.
Also at the same time, it is ranked 5th as “the center where organizations are most likely to begin new operations in coming years”.
And another Index “the World Economic Forum’s Global Competitiveness Index”, recognizes Malta as the country ranked 10th in the world for “Sound Banking System”.
The number of business registration is growing in Malta.
The regulator in Malta
The Maltese regulator is the “Malta Financial Services Authority” (MFSA).
MFSA is the single regulatory authority for financial services in Malta. It was established on 1988, as a Self-Funded & Resourced organization. It is part of the “EU Member State” and also a “OECD Strategic Partner”.
MFSA isn’t just a regulatory authority which takes registration from companies, but it also performs supervisory activity.
The authority checks internal audit of companies, and reports to Parliament on an annual basis.
Now which brokerage firms are registered and licensed by MFSA? Check the latest list of brokers from here!