Following the success of Notified Alternative Investment Funds (“Notified AIFs”), the Malta Financial Services Authority (“MFSA”) launched a proposed framework for Notified Professional Investor Funds (“Notified PIFs”).
Notified PIFs shall improve Malta’s appeal as a fund jurisdiction, particularly for US, UK and other third country investment managers.
What is being Proposed?
- Notified PIFs will be subject to a notification process rather than full licensing.
- The notification process may be completed within 10 working days.
- Promoters may benefit from lower setup and other operational and regulatory costs.
- Marketing material and offering documentation will not be reviewed and approved by the MFSA.
- Notified PIFs can only be non-retail schemes available to Qualifying Investors, due to their risk level and minimum supervision.
- Due to the minimum level of supervision, adequate risk disclosures are to be made to any prospective investors accordingly.
- Any investment strategy, except for ‘Lending’ activity, will be allowed.
- Notified PIFs can only be set up as third-party managed funds, managed by specific Alternative Investment Fund Managers (“AIFMs”).
- Notified PIFs are not required to appoint a custodian.
- Fund administration services must be carried out by a Maltese established and recognised fund administrator.
- A third-party service provider shall conduct due diligence with respect to the Notified PIF, both at notification stage and on an ongoing basis.
- Notified PIFs must appoint a Money Laundering Reporting Officer (“MLRO”). This function may be delegated to:
- The administrator of the Notified PIF, provided that such administrator is:
– A recognised fund administrator; or
– Is authorised in an EU Member State or in a reputable jurisdiction. - An officer of the Notified PIF who has sufficient seniority and command.
- At least one of the Directors must be resident in Malta.
- The MFSA shall be notified of the appointment, removal, or replacement of any service provider to the Notified PIF in advance of the change.
- The MFSA may remove a Notified PIF, including any Sub-Fund, from the List of Notified PIFs at any time at its sole discretion.
How can ZD be of Assistance?
Should you require additional information or assistance with regards to the proposed Notified PIFs framework, do not hesitate to contact us.
