MFSA's Strengthened Sponsors' Regime Now in Force

What Has Changed - and Why It Matters

Sponsors play a pivotal role in Malta's capital markets. The revised framework introduces a statutory definition of "sponsor", recognising sponsors as key intermediaries in admissibility to trading applications. As the first point of contact for prospective issuers, sponsors are vital in helping to ensure that only high-quality, compliant applicants access the market. 

Under the new regime, the following key developments are now legally in effect:

• Registration requirements: Individuals and firms that act as sponsors must now be formally registered with the MFSA. 
• Regulatory oversight: The MFSA is empowered to approve, refuse, cancel or suspend registrations, and to impose conditions as appropriate.
• Public register: A register of authorised sponsors will be maintained by the MFSA, increasing transparency and trust in the marketplace.
• Fees framework: New application and ongoing annual fees for sponsors have been introduced in line with the amended Financial Markets (Fees) Regulations, with fees structured on a proportionate basis.
• Updated Capital Markets Rules: Chapter 2 of the Capital Markets Rules has been overhauled to centre on the strengthened regime's core elements, including eligibility criteria, role definitions, and sponsor organisation and governance. 

This regulatory package aligns with Malta's broader objectives of market integrity, investor protection, and capital market development, enhancing both clarity for service providers and confidence among market participants.

How Grant Thornton Malta Can Help

The strengthened Sponsors' Regime is more than a technical regulatory update. As set out by the MFSA, it forms part of a broader strategic initiative aimed at raising standards within Malta's capital markets, clarifying the role and responsibilities of sponsors, and ensuring that only high-quality, well-supported issuers are admitted to trading.

With the regime now in force, the focus for sponsors and issuers alike is on demonstrating alignment not only with the letter of the rules, but with their underlying intent, namely enhanced accountability, effective governance, and stronger market confidence.

At Grant Thornton Malta, we support clients in responding to this strategic shift in a practical and proportionate manner. Our approach is firmly grounded in the MFSA's stated objectives for the Sponsors' Regime and focuses on helping clients in:

• Preparing a GAP analysis and impact on your business.
• Clearly understanding how the MFSA's clarified role and responsibilities for sponsors apply to their specific operating model.
• Supporting through our capital market services, including listing preparation, financial due diligence, prospectus drafting support, and ongoing reporting assistance for issuers.

We recognise that the MFSA's initiative is designed to reinforce confidence in Malta's capital markets through clearer expectations and higher professional standards. Our role is to help our clients meet those expectations efficiently and sustainably - ensuring that regulatory alignment supports credibility, consistency, and long-term market participation.