Introduction: Recognized Jurisdictions in Malta
The term ‘recognized jurisdiction’ often features in the sphere of Maltese fund regulation, namely, in the standard license conditions regulating Malta-based Retail Non-UCITS Collective Investment Schemes and those regulating Malta-based UCITS Collective Investment Schemes and in the Investment Services Rules for Professional Investor Funds.
Regulatory references to Recognized Jurisdictions
The following provisions are examples of express references made to Recognized jurisdictions.
In the case of Professional Investor Funds (PIFs)[1], Retail Non-UCITS Collective Investment Schemes and UCITS Collective Investment Schemes which are established as limited partnerships, the request for the written consent of the MFSA before admitting a general partner need not be accompanied by a Personal duly completed by the person proposed or by the directors and qualifying shareholders of the proposed general partner in the case of a body corporate but shall only include details of the regulatory status of the general partner.
In the case of Retail Non-UCITS Collective Investment Schemes and UCITS Collective Investment Schemes, it is stated however that the MFSA reserves the right to require submission of the Personal Questionnaires of the Directors and Qualifying Shareholders of the proposed corporate General Partner where considered appropriate.[2]
In the case of Professional Investor Funds, Retail Non-UCITS Collective Investment Schemes and Malta-based UCITS Collective Investment Schemes established as Investment Companies, the scheme may only appoint a Corporate Director which is regulated in a Recognized Jurisdiction[3].
Licensed investment services providers may outsource material activities to service providers located in Recognised Jurisdictions.[4]
PIFs may appoint service providers which are not established and regulated in a Recognised Jurisdiction provided the:
- service provider is the subsidiary of a firm that is regulated in a Recognised Jurisdiction which retains control of its subsidiary and undertakes to provide all the necessary information to the MFSA; or
- where the MFSA considers that the Service Provider is subject to regulation to an equal or comparable level in the jurisdiction concerned.
Where the PIF intends to appoint one or more service providers which are not based in a Recognised Jurisdiction it is recommended that prior to the submission of an Application for a PIF Licence, the promoters submit an application for preliminary indication of acceptability of a PIF.[5]
Licensed investment services providers may outsource material activities to service providers located in Recognised Jurisdictions.[6]
Malta's Recognised Jurisdictions defined
The term ‘Recognised Jurisdictions’ refers to:
- EU and EEA Members and
- signatories to a Multilateral MoU or Bilateral MoU with the MFSA covering the relevant sector of financial services. [7]
(*) These countries are not members of the European Union (EU)
Signatories to a Multilateral MoU or Bilateral MoU with the MFSA covering the relevant sector of financial services
The MFSA has signed a number of bilateral Memoranda of Understanding (MOU) with international regulators of financial services and is also a signatory to specialised multilateral MoUs through organisations such as the International Organization of Securities Commissions (“IOSCO”) and the Committee of European Securities Regulators (“CESR”) now replaced by the European Securities and Markets Authority (ESMA).
Special attention must be given to the Scope of the Agreement since the MOU must cover the relevant sector of financial services.
To date the MFSA has concluded the following Memoranda of Understanding:
Bilateral MoUs with Foreign Regulators
|
Country
|
Entity
|
Entity’s Responsibilities
|
Date of Signature
|
Scope of Agreement
|
|
Slovakia
|
National Bank of Slovakia
|
Banking, Insurance and Securities
|
1/12/2011
|
Banking, Insurance and Securities
|
|
United States
|
Nebraska Department of Insurance
|
Insurance
|
23/11/2011
|
Insurance
|
|
Australia
|
Australian Prudential Regulation Authority
|
Banking, Insurance, Pensions
|
14/06/2010
|
Banking and Insurance
|
|
China
|
China Banking Regulatory Commission
|
Country Central Bank
|
02/02/2010
|
Banking
|
|
China
|
China Securities Regulatory Commission
|
Securities
|
26/01/2010
|
Securities
|
|
South Africa
|
Financial Services Board
|
Securities, Insurance and Pension Funds
|
26/11/2009
|
Securities, Insurance and Pension Funds
|
|
Portugal
|
Banco de Portugal
|
Credit Institutions
|
30/10/2009
|
Credit institutions
|
|
Cayman Islands
|
Cayman Islands Monetary Authority
|
Credit Institutions, Insurance, Securities and Trusts
|
18/02/2009
|
Credit Institutions, Insurance, Securities and Trusts
|
|
The Emirate of Dubai
|
Dubai Financial Services Authority
|
Securities, Credit Institutions, Insurance and Trusts
|
07/07/2008
|
Securities, Credit Institutions, Insurance and Trusts
|
|
Bermuda
|
Bermuda Monetary Authority
|
Credit Institutions, Insurance, Securities and Trusts
|
03/06/2008
|
Insurance, Credit Institutions and Trusts
|
|
Cyprus
|
Credit Institutions
|
Credit Institutions
|
29/05/2008
|
Credit institutions
|
|
Austria
|
Financial Market Authority
|
Banking, Insurance, Pension Funds and Securities
|
02/04/2007
|
Credit institutions
|
|
Netherlands
|
De Nederlandsche Bank N.V. (DNB)
|
Banking, Insurance, Pension Funds and Securities
|
23/10/2006
|
Banking
|
|
Belgium
|
Banking, Finance and Insurance Commission
|
Banking, Securities and Insurance
|
23/10/2006
|
Banking
|
|
Jersey
|
Jersey Financial Services Commission
|
Banking, Securities and Insurance
|
21/11/2005
|
Mutual assistance and exchange of information
|
|
Isle of Man
|
Insurance and Pensions Authority
|
Insurance and Pensions
|
27/06/2005
|
Mutual assistance and exchange of information
|
|
Germany
|
Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
|
Banking, Securities and Insurance
|
12/09/2004
|
Banking, Securities and Insurance (Primarily Banking)
|
|
Gibraltar
|
Financial Services Commission.
|
Banking, Securities and Insurance
|
30/06/2004
|
Banking, Securities and Insurance.
|
|
United Kingdom
|
Financial Services Authority
|
Banking, Insurance, Investment Services
|
23/04/2004
|
Banking, Insurance, Investment Services
|
|
Portugal
|
Commissão de Mercado de Valores Mobiliários
|
Securities
|
23/03/2004
|
Securities
|
|
Slovakia
|
National Bank of Slovakia
|
Banking
|
12/02/2004
|
Banking
|
|
Mauritius
|
Financial Services Commission
|
Securities, Insurance and Pensions
|
21/01/2004
|
Securities, Insurance and Pensions
|
|
Guernsey
|
Guernsey Financial Services Commission
|
Banking, Investment Services, Insurance and Fiduciary Services
|
17/01/2004
|
Banking, Investment Services, Insurance and Fiduciary Services
|
|
Turkey
|
Capital Markets Board of Turkey (Semaye Piyasasi Kurulu)
|
Securities
|
04/04/2002
|
Securities
|
Similar Agreements by means of Letters with Foreign Regulators
|
Country
|
Entity
|
Responsibilities
|
Date
|
Scope
|
Document
|
|
Switzerland
|
Swiss Financial Market Supervisory Authority (FINMA) [previously the Swiss Federal Banking Commission (SFBC)]
|
Banking, Securities and Insurance
|
19/10/2004
|
Banking and Securities
|
Media Statement
|
|
Italy
|
Commissione Nazionale per le Societa’ e la Borsa (CONSOB)
|
Securities
|
21/03/1996
|
Securities
|
Media Statement
|
Multilateral MoUs and Protocols
|
Country
|
Entity
|
Responsibilities
|
Date
|
Scope
|
|
International
|
International Association of Insurance Supervisors (IAIS)
|
Multilateral MoU signed
|
26/10/2010
|
Exchange of information in insurance regulatory and supervisory matters
|
|
International
|
Financial Supervisory Authorities, Central Banks and Finance Ministries of the EU
|
Multilateral MoU signed
|
01/06/2008
|
Cross-Border financial stability
|
|
International
|
Financial Supervisory Authorities, Central Banks and Finance Ministries of the EU
|
Multilateral MoU signed
|
01/06/2008
|
Cross-Border financial stability
|
|
International
|
CEIOPS
|
Protocol in force
|
31/03/2008
|
Insurance
|
|
International
|
CEIOPS
|
Protocol in force
|
28/04/2006
|
Insurance
|
|
International
|
CEIOPS
|
Multilateral MoU signed
|
11/04/2006
|
Insurance and occupational pensions
|
|
International
|
CEIOPS
|
Protocol in force
|
02/03/2006
|
Occupational pensions
|
|
International
|
IOSCO
|
Multilateral MoU signed
|
28/02/2006
|
Securities
|
|
International
|
CESR*
|
Multilateral MoU signed
|
01/05/2004
|
Securities
|
|
International
|
CEIOPS
|
Protocol in force
|
01/05/2004
|
Insurance
|
* Please note that CESR has become ESMA as of 1 January 2011
The following are the current therefore:
|
Albania
|
British Columbia
|
Denmark
|
Hong Kong
|
Jordan
|
Maldives
|
Ontario
|
Serbia
|
Switzerland
|
USA
|
|
Alberta
|
British Virgin Islands
|
Dubai
|
Hungary
|
Kenya
|
Mexico
|
Pakistan
|
Singapore
|
Syrian Arab Republic
|
Uruguay
|
|
Australia
|
Bulgaria
|
Estonia
|
India
|
Republic of Korea
|
Montenegro
|
Poland
|
Slovakia
|
Tanzania
|
West African Monetary
Union
|
|
Austria
|
Cayman Islands
|
Finland
|
Isle of Man
|
Liechtenstein
|
Morocco
|
Portugal
|
Slovenia
|
Chinese Taipei
|
|
|
Kingdom of Bahrain
|
China
|
France
|
Israel
|
Lithuania
|
The Netherlands
|
Qatar
|
South Africa
|
Thailand
|
|
|
Belgium
|
Croatia
|
Germany
|
Italy
|
Luxembourg
|
New Zealand
|
Quebec
|
Spain
|
Tunisia
|
|
|
Bermuda
|
Cyprus
|
Greece
|
Japan
|
Former Yugoslav Republic of Macedonia
|
Nigeria
|
Romania
|
Sri Lanka
|
Turkey
|
|
|
Brazil
|
Czech Republic
|
Guernsey
|
Jersey
|
Malaysia
|
Norway
|
Saudi Arabia
|
Sweden
|
United Kingdom
|
|
The following are the current therefore:
|
Australia
|
Cayman Islands
|
Japan
|
The Netherlands
|
|
Austria
|
Chinese Taipei
|
Jersey
|
Romania
|
|
Belgium
|
France
|
Lithuania
|
Singapore
|
|
Bermuda
|
Germany
|
Macau
|
Switzerland
|
|
British Virgin Islands
|
Guernsey
|
Mexico
|
United Arab Emirates
|
|
USA
|
|
|
|
[1] Investment Services Rules for Professional Investor Funds, SLC 1.1
[2] Standard Licence Conditions regulating Malta-based Retail Non-UCITS Collective Investment Schemes, SLC 11.1; Standard Licence Conditions regulating Malta-based UCITS Collective Investment Schemes, SLC 14.1
[3] Investment Services Rules for Professional Investor Funds, SLC 2.3; Standard Licence Conditions regulating Malta-based Retail Non-UCITS Collective Investment Schemes, SLC 12; Standard Licence Conditions regulating Malta-based UCITS Collective Investment Schemes, SLC 15
[4] Guidance Notes to the Investment Services Rules for Investment Services Providers
[5] ‘Investment Services Rules for Professional Investor Funds’ Part: A
[6] Guidance Notes to the Investment Services Rules for Investment Services Providers
[7] Guidance Notes to the Investment Services Rules for Investment Services Providers
