The MFSA is responsible for licensing and regulating investment services (such as persons providing investment advice), collective investment schemes (such as funds) and investment exchanges (such as the Malta Stock Exchange). 

The MFSA will only issue a licence if it is satisfied that the applicant is a fit and proper person to provide the investment service concerned and that the applicant will comply with and observe at all times all the rules applicable to the licence holder.

The concept of fit and proper is a fundamental regulatory concept. This is a rigorous test which requires senior staff and potential and existing licensees to demonstrate competence, integrity and solvency i.e. they have sufficient capital, in all their dealings. This concept needs to be practised both at licensing stage and on an on-going basis thereafter.