The event brought together several market participants, including licensed and prospective entities, legal and compliance professionals, and regulatory experts. 

Key highlights from the workshop included:

• Conflict of Interest Management: CASPs were reminded that identifying and disclosing conflicts of interest alone is not sufficient. They must implement measures to prevent and manage these conflicts in practice, beyond mere disclosure.
• Client Best Interest and Best Execution: CASPs are expected to act in their clients’ best interests during trade execution. This includes a comprehensive assessment of factors such as price, cost, speed, execution likelihood, and settlement reliability. The MFSA emphasised that best execution is not solely about obtaining the best price, but also about optimising overall client outcomes through a holistic approach.
• Marketing and Communication Standards: All marketing material should be fair, clear, and not misleading. In addition, transparency around promotions and incentives is essential, including clearly outlined conditions. Incentives must be proportionate, relevant to the service or product, and not of substantial value.
• Compliance Function: The MFSA stressed the importance of a permanent, effective, and independent compliance function within CASPs, as a critical pillar of sound governance and regulatory adherence.
• Website Disclosures and Best Practice: As a best practice, regulatory and risk disclosures should be prominently included in the footnotes across all pages of CASPs’ websites. During the event, reference was also made to the recent thematic review of CASP websites which the MFSA has undertaken, and which findings were issued in a Dear CEO Letter to the sector.

Other topics were also addressed during the workshop, namely, Reverse Solicitation, Advisory and Portfolio Management, Transfer Services and Complaints Handling.

The rules which have been added or updated seek to apply MiCA Level 2 and Level 3 requirements or clarify the process which should be followed by applicant’s and/or Authorised Persons when submitting certain notifications to the Authority. All amendments are immediately applicable upon publication  of the updated rules. 

The Consultation Document is being issued in response to the entry into force of The Markets in Crypto-Assets Act, which transposes and aligns with the Markets in Crypto-Assets Regulation (MiCA). 

MFSA also published Guidance Notes which have been formulated to assist in the "accurate and efficient compilation of the CASP Return".

Deadline for feedback to the consultation is 31 January 2025.