Update On Provision Of CSP Services By Trustees

Operators in the trustee sector may be familiar with the restrictions contained in the Trusts and Trustees Act (Cap.331 of the Laws of Malta, "TTA") that the MFSA have interpreted as obliging authorised trustees (and fiduciary mandataries and administrators of private foundations) to only offer CSP services to persons to whom trustee services are being offered and not, therefore, to persons that are not also the recipients of trustee services. This was the result of an interpretation of the relevant provisions dealing with the regulatory requirements for trustees, fiduciary mandataries and administrators requiring them to:

1. Only carry on activities ancillary or incidental to the main services, and to not have objects which are not compatible with such an activity; and