On the 12 July 2019, the MFSA issued a Guidance Document entitled ‘Guidance on the Fitness and Properness Assessments applied by the Authority’ which serves to provide further detail on the areas which the MFSA’s assessments are carried out on. The MFSA assesses fitness and properness against the following criteria:

  • competence;
  • reputation;
  • solvency;
  • conflicts of interest and independence of mind; and
  • time commitment.

Applicants or licence holders should only propose individuals for approved positions who in their opinion are fit and proper persons and the MFSA expect such entities to carry out their own due diligence and assessment of such persons, not only prior to proposing such person but also on an ongoing basis. These guidelines along with the establishment of the Financial Crime Compliance team serve to further strengthen MFSA’s supervisory processes.

The Guidance Document can be accessed here.