Malta New Legislation transposing the UCITS IV Directive

Cristina Maria Scerri | Published on 13 Jul 2011

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The MFSA has transposed the provisions of the UCITS IV Directive, the Level II Implementing Measures and ESMA’s Guidelines by introducing new legislation and updating existing regulations.

As from the 1st of July, the legislation which has been introduced in relation to the marketing of UCITS, the UCITS Management Company Passport and UCITS mergers respectively and the amendments which have been made to the MFSA’s Investment Service Rules have come into force.

The Market of UCITS Regulations lays down the procedures to be followed by Maltese UCITS wishing to market their units in other EU or EEA Member States and by European UCITS which wish to market their units to investors in Malta. The Regulations also establish the information requirements to be satisfied by Maltese UCITS or European UCITS in relation to their respective investors.

The UCITS Management Company Passport Regulations regulate the procedure to be followed in order for a Maltese management company or for a European management company to obtain regulatory approval to establish a branch or to provide services on a cross-border basis in another EU Member State or in Malta respectively.

The UCITS Mergers Regulations lay down the regulatory requirements for domestic mergers and cross-border mergers as well as the merger of master and feeder UCITS.

The standard licence conditions applicable to Investment Services Providers laid down in the Investment Services Rules for Investment Services Providers have been updated to include a new section applicable to UCITS Management Companies.

The Investment Services Rules for Retail Collective Investment Schemes have been amended in order to introduce new rules regulating the Key Investor Information (KII) Document.  Reorganisation of the section dealing with self-managed schemes set up as Maltese UCITS. Supplementary licence conditions have also been issued with regards to schemes set up as money market funds, self-managed schemes and on risk management, counterparty risk exposure and issuer concentration applicable to Maltese UCITS .

This legislative overhaul renders Maltese legislation in line with its EU membership obligations and provides for a broader legislative approach.

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