License holders authorised under the Financial Institutions Act and under certain parts of the Investment Services Act, are required, by the MFSA, to appoint a Risk Manager to oversee and manage the risks within the license holder and its business. The role of the Risk Manager within the Company is to establish and implement the Company’s Risk Management Policy and monitor, on an ongoing basis, the risks that the Company is exposed to. The risk manager needs to be a person who has knowledge and experience with the management of risks specifically in relation to the license holder’s business. The appointment of a risk manager is subject to MFSA approval.
Some companies will require a full time risk officer, whereas others, generally those who are still building momentum in their business, may be able to fulfil their requirements by having a risk manager seconded to them on a part-time basis. Actaco Financial, provides this service through the secondment of Alexia Farrugia, a qualified risk manager with several years of experience in the financial services industry. Alexia is assisted by the Actaco team and Actaco’s Advisory Board. The Actaco team can tap into the knowledge and resources of the Advisory Board, a group of European risk management experts with several years of experience in a number of different areas within the financial services industry, that range from banking to investment services. This ensures widespread knowledge and experience with a bespoke service that continuously meets the individual license holder’s needs in order to fulfil regulatory requirements.
Actaco Financial provides a tailor- made, targeted risk management solution designed to meet requirements of the individual entity, rather than a one size fits all. Additionally, we also make it our policy to onboard a limited number of clients so that each client can have the benefit of having direct attention from a highly experienced risk manager.
MONEY LAUNDERING REEPORTING OFFICER (MLRO)
Every license holder is considered to be a subject person who has obligations under Anti Money Laundering regulations. License holders must appoint an officer of the company as Money Laundering Reporting Officer (MLRO). The MLRO’s role is to draw up and implement the Company’s Anti Money Laundering Policy in line with the legislation, currently the 4th AMLD as transposed into Malta’s law. The MLRO is the point of contact for front line Company resources who report any suspicious money laundering activities to the MLRO, who then considers these reports and forwards them to the FIAU if necessary. A number of periodic reports need to be submitted by the MLRO.
Actaco Financial provides the service MLRO by the secondment of an approved person. Alexia Farrugia is an FIAU approved MLRO and holds this position for a number of licensed entities.
Actaco Financial assists subject persons with their Business Risk Assessment (BRA) and AML policies even where an in house MLRO is already appointed. The risk-based approach was one of the major changes to AML legislation brought about by the 4th AMLD. The rules require all license holders to conduct a Business Risk Assessment (BRA) from an AML perspective, with the aim of ensuring that license holders direct resources to areas which are perceived as being higher risk. Actaco’s risk management expertise is put at the client’s disposal in conducting the AML business risk assessment.
Companies established in Malta require at least one director which is a Maltese resident. The role of all directors within the company, be they local residents or otherwise, is to establish, implement and oversee corporate governance with the Company whose board they sit on. In particular, directors of licensed companies are required to be knowledgeable within the field of the Company’s business and therefore need to be approved by the MFSA prior to their appointment.
This service is provided by Alexia Farrugia in a personal capacity, since due to her deep knowledge in investments and financial services, Alexia is approved by the MFSA to act as NED to licensed SICAVs and financial services companies incorporated in Malta. She also sits on the boards of listed or unlicensed companies.
Actaco has distinct expertise in Securitisation transactions, whether these are structured under the Maltese Securitisation legislation, or through other jurisdictions.
Securitisation is a highly-specific financing and risk management tool where assets from an originator are pooled together and sold to a special purpose vehicle (SPV). The SPV usually finances the purchase of those assets through the issue of securities. This funding structure is very versatile and allows shifting cash flows or risks. The SPV is a financial vehicle and does not need to be a licensed entity.
This Actaco Securitisation service offering provides a holistic solution that assists its clients with the advice on structuring of the transaction and everything that is necessary to implement the chose structure. This includes coordinating the various aspects of a securitisation transaction from legal set up, regulatory notification, drawing up offering documents, liaising with banks, listing authorities and other service providers.
The Maltese Securitisation legislation is very versatile as in addition to traditional securitization vehicles, Securitisation Cell Companies can also be set up. These are specific securitization vehicles that enable the use of cells for different securitization transactions Maltese Securtisation vehicles can be set up to be tax neutral.