The Malta Financial Services Authority (MFSA) has launched a new investment framework – the Notified Alternative Investment Funds framework - in tandem with Luxembourg’s Reserved Alternative Investment Fund (RAIF), which was described by analysts as being “pioneering and revolutionary”.
The new approach will reserve several benefits, prominent among which the fact that new funds will be able to come onto the market faster without the need to be scrutinised by the regulator.
The Maltese NAIF
The Maltese NAIF will also benefit from passporting to other member states. The NAIF will only be made available to qualified or professional investors and any structures authorised by the Maltese law can be used as a NAIF. The Notified AIF is not authorised or in any way approved by the MFSA nor will it be subject to ongoing supervision. The authority shall also be making available and maintaining an updated list of Notified AIFs in good standing on its website.
The Licensing Process for Funds
The MFSA is separately assessing the licensing process for funds, particularly the Professional Investor Funds, (PIFs) currently licensed under Maltese law. The Notified AIF can be established as any structure allowed under Maltese law and the AIFM will assume full responsibility for the Notified AIF and for the fulfilment of the obligations of the Notified AIF.
EU/EEA AIFMs
EU/EEA AIFMs may submit a notification to the MFSA for an AIF to be included on the List of Notified AIFs. Third country AIFMs will be able to submit a request for notification of an AIF once the country where these have been established has been granted passporting rights pursuant to the AIFMD. The process of notification of AIFs will be available to Collective Investment Schemes which are not already in possession of a licence issued by the MFSA in terms of the Investment Services Act. The MFSA will be publishing a list of documents required together with a proforma prospectus template to be submitted as part of the notification process of the AIF.
Within 10 business days from the date of filing of a complete notification pack, the MFSA will proceed to include the AIF in the List of Notified AIFs. The MFSA expects to start receiving requests for inclusion in the List of Notified AIFs from around the middle of the second quarter of this year.
Commenting, MFSA chairman Joe Bannister stated, “We believe that innovation is one of the key pillars of the financial services strategy for Malta, and we have said this several times. The framework builds on the innovation of past legislation and will be followed by other launches over the coming months.” Professor Bannister is also confident that the Maltese version of Luxembourg’s RAIF will be received as positively.
