Malta: Recognised Jurisdictions

Cristina Maria Scerri | 16 Apr 2012

Malta Recognised Jurisdictions

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]

 

 

Austria

Estonia

Ireland

Netherlands

Spain

Belgium

Finland

Italy

Norway*

Sweden

Bulgaria

France

Latvia

Poland

United Kingdom

Cyprus

Germany

Lithuania

Portugal

 

Czech Republic

Greece

Liechtenstein*

Romania

 

Denmark

Hungary

Luxembourg

Slovakia

 

 

Iceland*

Malta

Slovenia

 

 
 
     
 

(*) 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

 


Request More Information

Please send me legal and other updates

Related Industry Groups
Related Practices
Related Opportunities