Here is the article rewritten in Markdown format with proper headings, subheadings, and bullet points:
Malta’s Fintech Regulatory Framework: A Guide for Investors
In an effort to promote innovation and growth in the financial technology sector, Malta has established a comprehensive regulatory framework that governs various fintech activities. While some areas remain unregulated, others are subject to specific rules and guidelines.
De Minimis AIFM Exemption
Malta’s Alternative Investment Fund Managers (AIFMs) Directive provides for a de minimis exemption, which allows certain fund managers to operate without being subject to all the provisions of the directive. However, this exemption does not grant EU passporting rights.
Regulated Fintech Activities in Malta
- Peer-to-Peer and Marketplace Lending: Any person engaging in these activities on a regular basis must obtain a licence from the Malta Financial Services Authority (MFSA).
- Crowdfunding: Investment-based crowdfunding services are regulated under the Investment Services Act, requiring licensing and imposing disclosure obligations. Reward- and donation-based platforms remain unregulated.
- Invoice Trading: Factoring and invoice discounting are considered lending activities that require a licence from the MFSA if carried out regularly in or from Malta.
Payment Services
The Payment Systems Directive 2 (PSD2) regulates payment services in Malta, including:
- Payment Initiation Service Providers
- Account Information Service Providers
These entities must obtain authorisation from the MFSA prior to commencing operations.
Open Banking
Malta has introduced open banking through the regulation of third-party payment service providers. However, there are no laws or regulations promoting competition among financial institutions by requiring them to make customer or product data available to third parties.
Insurance Products
Fintech companies selling or marketing insurance products in Malta must be regulated by:
- Insurance Business Act
- Insurance Distribution Act
These acts impose requirements from or with the MFSA, depending on the nature of the insurance business activity being provided.
Credit References
The Trading Licence Act defines credit reference agencies as undertakings licensed to prepare, assemble, and evaluate credit information. Credit reference services are regulated by:
- Central Bank of Malta
- Trade Licenses Unit
Date: 14 July 2020