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ARTICLE · 19 DECEMBER 2025

Strengthening Risk Management: MFSA's Expectations For CSPs

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On the 25th of November 2025, the Malta Financial Services Authority ("MFSA") issued a ‘Dear CEO letter' to communicate the results of a thematic review of the risk management function...

MaltaFinance and Banking
Rachel Gauci
Rachel Gauci
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On the 25th of November 2025, the Malta Financial Services Authority ("MFSA") issued a 'Dear CEO letter' to communicate the results of a thematic review of the risk management function of Class C Company Service Providers("CSPs"). This letter forms part of the MFSA's wider supervisory drive to enhance governance, culture and resilience across the sector. Although the review is focused on a selected sample, the expectations outlined are relevant to all CSPs authorised in Malta.

Under the Company Service Provider Rulebook ("the Rulebook"), CSPs must maintain a risk management framework that allows them to identify, analyse and evaluate risk, by distinguishing between preventive controls designed to reduce the likelihood of risks occurring and recovery controls intended to mitigate their impact. Due to this, each CSP must appoint a Risk Officer who dedicates sufficient time and expertise to the function. The MFSA expects CSPs to assess and document the commitment of

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