MALTA: MFSA Publishes Consultation on the proposed implementation of the AIFMD

Tuesday May 28 2013

As part of the transposition process relating to the AIFMD, the Malta Financial Services Authority (MFSA) is proposing to revise the Investment Services Rules for Professional Investor Funds. The Authority has taken the decision to retain the PIF Regime for de minimis Licence Holders and third country managers wishing to set up a collective investment scheme in Malta since they are not required to comply with the requirements prescribed in the Directive in relation to AIFs. Furthermore, the PIF Rulebook will also be applicable to de minimis self-managed AIFs as outlined hereunder.

One of the most important changes which is being brought about by the transposition of the AIFMD relates to the alignment of the definition of Collective Investment Scheme in the Investment Services Act which enshrines the principle of risk spreading, with the definition of ‘AIF,’ which has no such requirement.

The Authority is proposing to introduce more certainty in the application of this principle primarily through the amendment of the definition of ‘collective investment scheme.’

While risk spreading will continue to be mandatory for UCITS, Non-UCITS Retail Schemes and Professional Investor Funds targeting Experienced Investors, risk spreading will be optional for the remaining types of CISs namely PIF targeting Qualifying and Extraordinary Investors and AIFs which target professional investors and the Authority shall have the discretion in future to disapply the principle of risk spreading in the Rules to certain Collective Investment Schemes as it deems appropriate.

In order to enhance consumer protection the Authority is proposing to revise the definition of ‘Experienced Investor’ in the PIF Rulebook by increasing the minimum investment requirement to € 100,000 and is clarifying the applicable investment requirements for joint holdings.

PIFs set up after 22nd July 2013 will be subject to the revised rules incorporated in the PIF Rulebook. PIFs which are already licenced will be expected to comply with the revised rules incorporated in the PIF Rulebook in their dealings with new investors.

Interested parties are to send their comments in writing by not later than 6th June 2013.

Please see the above link for more details.