An Applicant for a VFA licence shall, where mandatorily required, appoint the following Functionaries in fulfilment of the obligations prescribed in Rulebook 3 and to be compliant with the ongoing obligation once a licence is granted:

 

FUNCTIONARIES

 

VFA AGENT

  • Must be appointed at a pre-licensing stage;
  • Performs the Fitness and Properness Assessment on the key persons in the structure;
  • Reviews the Bye-Laws of the Applicant at application stage;
  • Acts as liaison between the Services Provider and the MFSA and ensures that all prescribed obligations are being adhered to;
  • Notifies Authority with the Statement of Intent;
  • Submits the Application Form and ancillary documentation to the MFSA.

 

COMPLIANCE OFFICER

  • Implements and maintains adequate policies and procedures detecting risk of failures of obligations;
  • Reviews the Bye-Laws of the Licence Holder on an ongoing basis;
  • Drawing up and implementing a Compliance Monitoring Plan;
  • Responsible for the compliance function and for any reporting as to compliance required by the Rulebook 3;
  • Drawing up of the annual Compliance Certificate, which includes the outcome of the Compliance Officer’s Compliance Monitoring Plan, a confirmation that all the local AML/CFT requirements have been satisfied and a list of
  • clients against whom disciplinary action has been taken by the Licence Holder;
  • Advises and assists the relevant persons responsible for carrying out VFA Services to comply with the Licence Holder’s legal and regulatory obligations.

 

BOARD OF ADMINISTRATORS

  • Must possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties and be able to understand the Licence Holder’s main activities and main risks;
  • Responsible to oversee the general organisation of the licenced entity;
  • Monitors and periodically assesses the adequacy and implementation of the VFA Service Provider’s strategic objectives in the provision of VFA Services, the effectiveness of governance assessment and the adequacy of internal policies to address deficiencies.

 

MONEY LAUNDERING REPORTING OFFICER

  • Fully understands the responsibilities attached to the role and must have a senior role;
  • Ensures compliance with the applicable provisions of the Implementing Procedures as well as sector-specific Implementing Procedures issued by the FIAU.

 

AUDITOR

  • Preparation of Audited Annual Financial Statements and Interim Financial Statements;
  • Preparation of a management letter in accordance with the International Standards on Auditing at the end of each annual accounting period.

 

CUSTODIAN

  • Need of a Custodian is assessed on a case-by-case basis;
  • Appointed for the safekeeping of the Licence Holder’s Assets and any VFAs held for the account of its clients;
  • The proposed custodian must have robust systems and controls;

 

INTERNAL AUDITOR

  • Establishes, implements and maintains an audit plan to evaluate the adequacy and effectiveness of the Licence Holder’s systems, internal control mechanisms and arrangements;
  • Reports in relation to internal audit matters;

 

SYSTEMS AUDITOR

  • Must be appointed when an Applicant has Innovative Technology Arrangements (ITAs) as part of its operations, or when a technological infrastructure which interacts with an ITA in some way or form is operated by the Applicant;
  • Prepares a Systems Audit Report to be submitted to the MFSA and MDIA at application stage.
  • Need of a Systems Auditor is assessed on a case-by-case basis where the MFSA might require the appointment of a Systems Auditor when an Applicant has Innovative Technology Arrangements (ITAs);
  • Reviews and audits the ITAs including cyber security arrangements;
  • Maintains a Live Audit Log.

 

IT AUDITOR

  • When an Applicant neither has Innovative Technology Arrangements (ITAs) as part of its operations, nor operates a technological infrastructure which interacts with an ITA in some way or form, an IT Auditor must be appointed;
  • Prepares an IT Audit Report to be submitted to the MFSA at application stage, as well as an annual IT Audit Report to be submitted to the MFSA;
  • Reviews and audits Applicant’s systems in place;
  • Maintains a Live Audit Log.

 

Practice Areas