UK Licensed Entities Providing Services in Malta
The termination of the passporting regime brings with it the end of the freedom of services and freedom of establishment and therefore it is necessary that such firms obtain authorization from an EU competent authority prior to the 31st December 2020.
Clients must be provided the necessary information about availability of services, alternative arrangements and contact details in case of enquiries. UK entities currently notifying the MFSA to passport into Malta must keep the above in mind and are encouraged to contact the Authority to provide details of future plans.
UK Investment Firms and Investment Funds – In line with the withdrawal agreement, any previous communication relating to the temporary permission regime in this area should a no-deal Brexit have come about, is no longer applicable. The options outlined by the MFSA for such firms are:
- To terminate the existing contracts in an orderly manner; and/or
- Obtain the necessary authorization; and/or
- Proceed with the assignment of the existing contracts to a duly authorized entity.
UK UCITS and AIFs Marketed in Malta – From 1st January 2021 these shall be considered non-EU AIFs and they shall be permitted to be marketed in Malta under the National Private Placement Regime (“NPPR”), subject to notification procedures that would allow them to continue to offer their units to Maltese investors. Applications for marketing under the NPPR are now being accepted by the MFSA.
UK Insurance Undertakings and Insurance Intermediaries – MFSA has issued a letter circulated to UK/Gibraltar firms and intermediaries disallowing such firms from concluding new insurance contracts or establish, renew, extend, increase or resume insurance cover under existing insurance contracts in Malta, unless authorized by the MFSA.
Without such authorization, insurance firms will be allowed to carry out an orderly run-off of the unauthorized business and inform the MFSA of such orderly run-off in a timely manner. Authorisation from the MFSA is needed for firms providing distribution activities in Malta, and the lack of such authorization from UK/GI firms prior to UK’s withdrawal from the EU, requires the intermediaries to inform the MFSA without further delay, of a realistic contingency plan.