Over the past years, regulators have considerably stepped up
their enforcement role, and this is evident from the hefty fines
being imposed, the publication of such fines, and the subject
persons in question. This reality poses not only compliance and
financial risks on subject persons but also reputational risks,
which might have an even greater adverse effect on the company.
Thus, it is natural that the notification of a regulatory visit is
met with apprehension by those involved.
Subject persons are informed of a visit from the FIAU, and
either the MFSA or the MGA, through a notification letter generally
sent three weeks in advance. The FIAU will also request a list of
documentation that would need to be provided within one week from
the receipt of the notification letter. Visits may take various
forms, with the most common being on-site or off-site compliance
examinations, full-scope, targeted or thematic reviews, supervisory
meetings, and ad hoc visits.
