Further to a Circular issued by the Malta Financial Services Authority (MFSA) to the investment services industry on the 26 March 2015 regarding the educational clinic organised by the MFSA in collaboration with Finance Malta relating to the CRD IV Package, the MFSA has issued an additional, supplemental Circular clarifying the manner in which the verification of profits is to be undertaken.

In terms of the said Circular, the MFSA will consider the verification requirement under Article 26(2)(a) of the Capital Requirements Regulation as having been met to the extent that investment firms and fund managers provide the MFSA, upon request, with a duly signed document from their external auditor/s as follows:

• Year-end profits – the verification is required to comprise either an audit report or a comfort letter stating that the audit has not been completed and that the auditors have no cause to believe that the final report will include a qualified opinion;
• Interim profits – the verification for interim profits should consist either of an audit report or of a review report or, provided that the verification carried out by the investment firm or fund manager consists of an audit report, a comfort letter as set out above.