MFSA Proposes New Aircraft Leasing Route with Lower Barriers

The MFSA has opened a second runway for aircraft financial leasing in Malta. On 24 July 2026, the regulator published a consultation document proposing new rules that would allow companies to conduct aircraft leasing without the burden of a full licence.

The proposed Article 3B sits alongside the existing Article 3A exemption. It does not replace it. Instead, it offers an alternative for companies that cannot meet Article 3A's strict ownership and funding requirements.

Under Article 3A, a company must be owned, controlled by, or exclusively funded by qualifying institutional investors. The leasing transaction must be financed exclusively by eligible counterparties under MiFID II. Article 3B removes those restrictions.

Companies using Article 3B must instead seek admission to a new List of Aircraft Financial Leasing Companies maintained by the MFSA. Listing is not a licence, but it confirms the company is lawfully carrying out aircraft financial leasing in compliance with MFSA rules.

To be admitted, a company must be incorporated and registered in Malta. At least one director must reside in Malta and effectively direct the business from there. Aggregate total assets must reach at least EUR 100 million, whether in liquid form or in aircraft or engines valued by a reputable independent valuer.

The company's financial services activities must be limited to aircraft or engine financial leasing, directly or through subsidiaries, plus ancillary activities. A Due Diligence Service Provider must be appointed before the notification is submitted. An MLRO may also be required depending on the structure, nature and size of the business.

Once admitted, companies face continuing obligations. These include ongoing monitoring by the DDSP at least annually, compliance with outsourcing requirements, and meeting ICT and security risk requirements with appropriate governance and control measures.

The consultation period runs until 31 August 2026. The MFSA is inviting feedback from aircraft lessors, aviation finance professionals, legal practitioners, corporate service providers, auditors and other interested stakeholders.

For investors who fall short of Article 3A's institutional ownership threshold, Article 3B may prove the more accessible way into Malta's aircraft leasing market. They must, however, be ready to take on the substance, governance and compliance obligations that come with it.

The proposed rulebook could broaden Malta's aircraft finance sector significantly. By lowering the barriers to entry without removing oversight, the MFSA is positioning Malta as a more flexible jurisdiction for aircraft leasing while maintaining regulatory standards.