Author: SME Chamber

The SME Chamber is asking members to express their interest in participating in a virtual business meeting that we are organising with our counterparts in Tunisia. The date and time of the meeting will be communicated closer to date.

The aim of this virtual meeting is to explore direct business collaborations and common interests with other businesses based in the area.

Here you will also find an economic overview of the region of the center in Tunisia provided by the Chamber of Commerce and Industry of the Centre.

Should you wish to attend this virtual business meeting kindly fill in this form to book a place or contact us on .

As Monday 15th March the legislation governing the updated CSP act came into force. With this new act a number of new requirements for operators have also come into force.

This follows months of consultation sessions and meetings held with authorities together with CSP committee members.

The below are the main changes that came into force.

New Classes:

Current and new CSPs will no longer be able to provide all services, by way of business as currently listed under the CSP Act.

CSPs will now be listed under one of 3 classes.

• Class A: Will be allowed to provide by way of business: : (i) formation of companies or other legal entities; and/or (ii) provision of a registered office, a business correspondence or administrative address and other related services for a company, a partnership or any other legal entity.
• Class B: Will be able to provide by way of business to third parties to act as or arranging for another person to act as director or secretary of a company, a partner in a partnership or in a similar position in relation to other legal entities.
• Class C: Will be allowed to provide, by way of its business, all of the services of a company service provider specified in the definition of “company service provider” i.e. all CSP related activities.

Exemption for Warranted Professionals:

Those currently operating under the exemption clause (advocate, notary public, legal procurator or certified public accountant) can no longer operate under this clause and will have to obtain authorisation. Current operators will be given 2 months to submit an initial application (interests to obtain authorisation). Warranted professionals have till the 15th of May to submit their application.

Following application, within 6 months, the authority will inform the applicant whether a full or provisional authorisation is given. This will depend on the level of check and if any due diligence will be required to be carried out by the MFSA. Please note that during this period the applicant will still be able to operate.

Should the authority decide to provisionally authorise the applicant, the applicant will be given an additional 12 months to come in line with any relevant conditions. Once again, the applicant will be able to continue to operate subject to coming in line with the recommendations within this stipulated period.

Should a registered accounting firm, or any other warrant holder, does not apply within the two-month application window, then it cannot operate following the two months. As per legal notice coming into force today the 16th March 2021, a firm can only operate until the 15th May 2021. In this case,  it is imperative that all relationships are duly transferred before this date.

Under Threshold CSPs: 

Following a number of concerns raised from our end on issues relating to proportionality, MFSA have created two under threshold classes to cater for individuals who do not wish to obtain the full licence given the administrative burden and given that their client base is small.

MFSA are therefore offering two different under thresholds possibilities:

Under threshold Class A CSPs: Refers to individuals or civil partnerships in possession of a warrant, or equivalent, to carry out the profession of advocate, notary public, legal procurator or certified public accountant whose revenue from corporate services forms, or is forecast to form, in the upcoming year, not more than: [a] 35% of the combined total revenue in a calendar year from the provision of all professional services; or [b] EUR100,000, whichever is the higher. Provided that this category may not provide the service of office, a business correspondence or administrative address and other related services for a company, a partnership or any other legal entity.

Under threshold Class B CSPs: Refers to individuals who hold an aggregate of not more than ten (10) involvements. Provided that for the purposes of this definition: [i] the term involvements shall encompass acting as director or  company secretary of a company, a partner in a partnership or in a similar position in relation to other legal entities; [ii] involvements with entities which are licensed, recognised or otherwise authorised by the Authority shall not count as an involvement given that individuals holding directorships or company secretarial positions in companies which are so licensed, recognised or authorised by the Authority are not considered as providing directorship or company  secretarial services by way of business , for the purposes of authorisation in terms of the Act; [iii] involvements of the same person within the same group of companies shall only count as one single involvement.

Currently Authorised CSPs 

As mentioned in our previous emails, CSPs currently authorised under the MFSA are already subject to a number of onerous requirements. Currently authorised CSPs therefore do not need to re-apply. Therefore, in such cases no action is needed and MFSA will be getting in touch directly.

Exemption from the CSP ACT

The CSP act exempts a number of entities who are either regulated under other legislation and are therefore exempted for the purposes of the requirement of authorisation for company service providers in terms of article 3 of the Act and shall accordingly be exempted from complying with the provisions of the Act. These include persons authorised to act as trustees or provide fiduciary services or VFA agents. The full list can be found here:  https://legislation.mt/eli/ln/2021/105/eng

Trustees, other fiduciaries and VFA Agents providing CSP Services 

MFSA have issued a circular specifically addressed at persons authorised to act as trustees or to provide other fiduciary duties in terms of the Trusts and Trustees Act; and persons registered to act as a VFA Agents.

For this purpose, such persons referred to above are required to make use of the Company Service Providers Notification form which is downloadable from the MFSA website to submit such notification. This is a one-time notification, and no subsequent notifications will be required thereafter, unless the person ceases to carry out such an activity.

Notification should be made prior to carrying out the services of a company service provider within the meaning of the Act. However, if the persons referred to above, on the date of coming into force of the Exemption Regulations, were already carrying out such services, such persons are required to submit the notification to the MFSA on or before 16 May 2021.

Webinar 

MFSA will be organising two webinars addressed to all professionals and practitioners whose activity will now fall under the scope of the new regulatory environment as explained in our previous communications.

During the webinars, MFSA officials will delve into the details of the reform and will provide all the necessary information about the new authorisation process affecting all warranted professionals and other individuals who were exempt in terms of the Company Service Providers Act as issued in 2013.

These webinars will be an excellent opportunity to raise any specific queries and also discuss further the context and the necessity of this reform as well as the general benefit for the industry, the clients and the Maltese jurisdiction.

Webinar 1: Thursday 15th April at 10:00 – Register Here:  http://bit.ly/MFSAWEBINAR1

Webinar 2: Thursday 15th April at 14:00 – Register Here:  http://bit.ly/MFSAWEBINAR2

Both sessions will have the same content and will be organised to meet the industry’s flexibility requirements. A certificate of attendance will be issued to all attendees who have joined the webinar with their personal details.

The SME Chamber is also assisting members in handling client complaints

ADVISES CAUTION ON IMPLEMENTING THE PLAN GRADUALLY AND IN THE SAFEST POSSIBLE MANNER

The SME Chamber has been calling on greater visibility and a defined recovery plan for months. Today’s announcement by Minister Clayton Bartolo is therefore greatly welcome and a sign that Malta is on the road to recovery.

The Malta Chamber of SME had emphasised that this year-round we were expecteing better planning and benefits out of a full year’s experience in dealing with the pandemic and also following the vaccine roll-out in Malta. As much as we understood the difficult and changing scenario, our country was in dire need of a plan for 2021, however tentative.

Recent positive developments on the health front are indeed encouraging and it is clear that the restrictions in place, combined with the vaccination strategy are working. It is essential that Malta does not let its guard down and therefore intensifying restrictions during the easter break was also a necessary move that we support.

The SME Chamber therefore hopes that this will be the first important step that will lead to more visibility in relation to economic recovery.

Many sacrifices have been endured by all and this includes the business community. Some businesses have been closed for months and suffered great difficulties during this period. It is therefore imperative that the steps to recovery are taken with great care and are gradual.

Malta needs to remain and be able to market itself as safe. As such, strict rules must be followed that ensure incoming tourists are not putting our country’s health care situation in danger. The SME Chamber believes that Malta now has the necessary experience and infrastructure in place to handle the gradual re-opening of the tourism season appropriately.

The SME Chamber advocates for the general public and especially the business community not to lower their guard and respect the health standards to the full because that is the only way in which strategies for recovery can be successful.

Highlights the major investment needed towards the electrification of transport

The Malta Chamber of SMEs discussed the Opposition’s Energy Policy presented in great detail by Ryan Callus, Opposition Spokesperson for Energy, Water & Sustainable Development.

SME Chamber CEO Abigail Mamo congratulated Hon Callus on the comprehensive strategy and stated that Malta needs to be courageous and aggressive with its Energy policy. ‘One of the biggest hurdles Malta faces when it comes to Energy is the real move towards an electric fleet of vehicles. As an SME Chamber we therefore welcome a specific focus on this important topic with this Strategy and the recognition of significant gaps Malta still has. The challenges the private transport sector faces in this regard are numerous, including the limitations offered by the aid available, infrastructural facilities and lack of capacity for private operators’.
Ryan Callus noted the number of further proposals put forward by the Chamber on renewables, Feed in Tariff (FIT) and grant schemes, which will be looked into and integrated within the policy once the process of public consultation is completed.

Malta Chamber of SMEs CEO Abigail Mamo described 2020 as an extraordinary year

Malta Chamber of SMEs President Paul Abela said that 2020 has been very difficult for almost all members of the SME Chamber because of all the struggles that the Covid-19 has brought about.

When addressing the SME Chamber members, President Paul Abela insisted that throughout 2020 the SME Chamber managed to strengthen its position while supporting businesses throughout these difficult times.

Paul Abela mentioned that the SME Chamber was successful in turning its efforts into tangible, essential, benefits for its members and the business community at large. Mainly the SME Chamber was behind the Wage Supplement and the Rent Subsidy scheme, apart from other sector-specific aid necessary.

Mr Abela thanked the organisation’s CEO, Ms Abigail Mamo and the SME Chamber Staff for their hard and dedicated work. He explained that the able staff of the SME Chamber has not only ensured that the effects of the pandemic are tackled for from all angles but also ensuring the full implementation of the SME Chamber work programme.

Malta Chamber of SMEs CEO Ms Abigail Mamo presented the Annual Report for 2020. Ms Mamo described 2020 as an extraordinary year. The main highlights of the annual report for 2020 are:

• Rebranding the SME Chamber, including launching a brand new website, a revamped newsletter and multiple communication channels

• The SME Chamber has launched brand new services for members. These include expert advice on Employment Law, as well as expert advice on Consumer Law

• Successfully securing the necessary schemes for Covid – Wage Supplement and Wage Subsidy

• Two successful hybrid National Conferences

• Over 30 online webinars

• Multiple campaigns to stimulate consumption at national level – Black Friday, Shop Local Campaign, Shop in Valletta and Park for Free

• Two Private-Partnerships with the Private Sector for the benefit of our members

• 6 National Studies targeting all of Malta’s business community

• Implementing and Winning more European Funds

Vice-President Finance and Administration Mr Marcel Mizzi presented an overview of the Financial reports.

The ship was buried too deep in the mud to remove

The cargo ship ‘MV Ever Given’ signalled authorities at 7:40 a.m. (local time) when it ran aground on the 23rd of March, resulting in the Suez Canal becoming blocked, delaying the arrival of several vital resources such as fuel and Cargo to several countries.

The Ship Ever Given is as long as the Empire State building ended up in its current predicament after unfortunately being caught in 40-knot winds and a sandstorm which caused low visibility and poor navigation.

Authorities attempted to re-float the ship on the 25th of March. However, to no avail, as the ship was buried too deep in the mud to remove, suggestions were also made to pull the ship out by other ships. However, the ‘MV Ever Given’s’ company stated that it would be impossible considering the ship’s wight. Excavation attempts are currently on their way to dislodge the ‘MV Ever Given’ and get the Suez Canal back up and running, considering that this is the world’s busiest waterway.

Currently, the local teams are emptying the ship of fuel and removing containers to dig the ship out from the mud easier. Reports issued by the response teams on site are stating that dislodging the vessel can take up to several days or weeks. However, several factors may either speed up or delay the process.

Reports coming in from the Suez Canal are currently stating that scores of vessels, including large container ships carrying oil, gas, and grain, are backed up because of the accident, causing the biggest traffic jam ever seen in the Suez Canal. The SCA (Suez Canal Authority) stated that it has temporarily allowed 43 ships from the Mediterranean to wait in the Great Bitter Lake, with the rest of the incoming ships forced to anchor in areas like the Red Sea and the Mediterranean Sea.

Some shipping firms may be forced to reroute their vassals around the strip of Africa; however, this option is exceedingly undesirable by firms as it would increase both the cost of such a detour and the time of approximately one week.

SME CHAMBER THANKS MINISTERS DALLI AND CARUANA FOR THEIR SUPPORT TO BUSINESSES

The Malta Chamber of SMEs has during the last months and weeks been emphasizing on how essential it is to extend the basic pillars of support of the moratoria and deferral schemes. We are pleased to note that discussions with the government have yielded the desired outcomes.

The Measures announced today are a step in the right direction and are perfectly in line with the needs expressed by our members.

Businesses are in an even more fragile state than they were last year with the pandemic stretching beyond what had been foreseen and resulting in 2021 falling short from being the year businesses were expecting.

Enterprise owners were therefore very worried as they were not in a position to re-start repayments. Some members had to stay on the moratoria in light that no or little work has been registered since last year. Other members had to return to using moratoria due to the resurgence of the effects of COVID.  Most were not in a position to repay taxes due to the dire liquidity situation and the need to direct any funds to save the business.

The Bank moratoria scheme has been extended for an additional 6 months, till September, and the Tax Deferrals Scheme has restarted from where it left off last year till the end of 2021. It is however essential to still submit all returns in time, without the payment, to avoid fines.

The Malta Chamber of SMEs believes that the extension of these measures will give added comfort to businesses in the light of the lack of visibility and uncertainty ahead. The last thing businesses need at the moment is to worry how they are going to make repayments when there is no or little funds coming in.

The Malta Chamber of SMEs thanks the Energy, Enterprise and Sustainable Development Minister Hon. Miriam Dalli, with whom we are in discussions daily, and Finance Minister Hon. Clyde Caruana for his implementation of

The Malta Chamber of SMEs has today issued a set of Call for Quotations as part of an ESF.04.159 project entitled: Leading and Delivering Dialogue Effectively, Representatively (LADDER)

Check them out:

Equipment – Mass Coomunication System – click here

Equipment – Complimentary emlpoyee setup – supply of IT equipment – click here

Equipment – Backend support  – supply and installation of server – click here

Research – system Gap Analysis – click here