MFSA Enforcement And The Limits Of Appeal Rights In Malta: Key Takeaways From The Phoenix Judgment

The Civil Court, First Hall (Constitutional Jurisdiction), in the judgment Phoenix Payments Limited (now Lazarus Long Limited) v the Malta Financial Services Authority and the State Advocate (Application Number 272/2021), delivered by the Honorable Madam Justice Rachel Montebello on 27 April 2026, examined the administrative enforcement powers of the Malta Financial Services Authority (“MFSA”) and, critically, whether the available appeal mechanism satisfies the right to a fair hearing.

Phoenix’s Application

Phoenix Payments Limited (subsequently renamed Lazarus Long Limited) (“Phoenix”), a financial institution licensed and regulated by the MFSA under the Financial Institutions Act (Chapter 376 of the Laws of Malta) (the “FIA”), was subjected to an administrative penalty of €32,400 by the MFSA under Articles 13 and 23 of the FIA and the Fines and Penalties for Offences Regulations (S.L. 376.02) (the “Regulations”), following findings of regulatory shortcomings in Phoenix’s