Download the summary of amendments report here.

As a consequence, B2C and B2B licensees operating in the remote business are required to appoint the following key function roles:

Furthermore, clarifications in respect to when certain roles need to be appointed during the lifetime of the license have been made.

1. 1. At the application stage, licensees must notify the MGA about who will hold the roles of chief executive officer, compliance officer, as well as MLRO (if applicable);

1. 2. Within 6 months of the licence being issued, the MGA must be notified as to who has been appointed to exercise the remaining key function roles;

1. 3. In case any of the persons exercising the key function role resigns, the licensee is required to notify the MGA by not later than 3 working days after such resignation. Additionally, the licensee is obliged to inform the MGA about the appointment of the replacement by not later than 15 working days after such resignation.

Importantly, if no person is approved by the MGA to fulfil a key function either temporarily or otherwise, the responsibility for such key function is vested in the directors of the licensee.

Policy on the Eligibility and Ongoing Competency Criteria for Key Persons – October 2021

Apart from amending Directive 3 of 2018, the MGA also issued the Policy on the Eligibility and Ongoing Competency Criteria for Key Persons (hereinafter the “Policy”), which sets the eligibility and ongoing competency criteria which the MGA shall consider in terms of persons who apply for the issuance or renewal of a Key Function Certificate.

Fitness and Propriety Considerations

Key persons are obliged to be fit and proper in order to perform their respective key functions on an ongoing basis.

The main criteria, which the MGA considers, consist of the following:

• Integrity, Honesty and Reputation;
• Competence and Capability.

General Competency Criteria and Continuous Professional Development

Persons being key functions officials are obliged to be duly qualified in terms of academic qualifications as well as professional experience as may be applicable for their given roles.

With respect to the continuous professional development (hereinafter “CPD”), when applying for the renewal of the Key Function Certificate, key persons must demonstrate that they have attained a minimum number of CPD hours during each calendar year of the previous certification period, in order for such renewal to be approved.

Evidence of fulfillment of the applicable CPD requirements includes the certification or other proof of attendance.

The Policy provides an exhaustive list of methods applicable to the attainment of CPD requirements, as follows:

1. Professional Educational Activities (courses, seminars, workshops);
2. Presentations (vendor or system-specific presentations);
3. Teaching / Lecturing / Presenting (development and delivery of presentations and courses relevant to key functions);
4. Publication of Articles;
5. Professional Examinations.

It must be noted that 1 CPD hour is earned for each hour of active participation for qualifying professional educational activities unless specified otherwise.

In addition, the table below further demonstrates the minimum experience and/or qualifications requirements as well as minimum annual CPD requirement for each key function role:

Compatibility of Roles

For clarity purposes, MGA has also published the table below to clarify which roles are incompatible with each other.

Actions required and applicable timeframes

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For any questions please contact [email protected]

The information above does not and is not intended to constitute legal advice and should not be relied on as such. For any specific matters kindly seek legal assistance.