Malta Transposes UCITS IV Directive

Cristina Maria Scerri | Published on 04 Jul 2011

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Malta has transposed the UCITS IV Directive which was to be transposed until the 1st July 2011.

Three new legal notices have been issued under the Investment Services Act:

• Marketing of UCITS Regulations, 2011 [L.N. 241 of 2011];

• UCITS Mergers Regulations, 2011 [L.N. 242 of 2011];

• UCITS Management Company Passport Regulations, 2011 [L.N. 243 of 2011].

The Investment Services Rules for Investment Services Providers and the Investment Services Rules for Retail Collective Investment Schemes have also been updated in order to transpose the UCITS IV Directive.

The UCITS IV Directive aims to encourage greater investor accessibility and reduce administrative costs.
Innovative features of the Directive include:

• the creation of an European passport for UCITS management companies: a management company located for instance in Malta will be able to manage funds in other Member States;

• Simplified administrative procedures: immediate market access is granted upon authorization of the country of origin of the UCITS;

• A framework for UCIT fund mergers: the Directive enables domestic and cross-border mergers of UCITS upon prior authorization;

• Master-feeder structures: A UCITS feeder fund will be allowed to fully invest its assets into another UCITS master fund.

The transposition of the UCITS IV Directive into Maltese legislation is yet another step towards the enhancement of an already well structured legislative framework.

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