On 22 May 2023, the Malta Financial Services Authority (the “MFSA”) published a Consultation Document on the proposed legislative amendments related to the promulgation of the new framework for Notified Professional Investor Funds (“NPIFs”). This follows and is complementary to the previous Consultation Document, which was issued by the MFSA on 22 December 2023, and which sought input from stakeholders on the main features of the proposed framework for NPIFs and the draft rulebook to regulate such framework.

The NPIFs Framework Proposal

The NPIFs framework proposal aims to introduce a new fund structure that is similar to the existing and largely successful Notified Alternative Investment Fund (“NAIF”) framework. Similarly to NAIFs, NPIFs will be subject to a notification process and not a licensing process. This will mean that NPIFs will have the possibility of obtaining their notified status with the MFSA in as little as 10 working days. The new framework will introduce the possibility of lower setup and other operational and regulatory expenses to those currently incurred by fully licensed funds. Moreover, the risk-based and proportional approach that is expected to be taken will lessen entry barriers for professional investor funds (“PIFs”).

You may read more about the proposed NPIFs framework in our previous article in relation to the first Consultation Document here.

The Suggested Legislative Amendments

Apart from the introduction of a dedicated rulebook, in its effort to establish this new NPIFs framework, the MFSA is proposing amendments to the following Regulations:

  • Investment Services Act (List of Notified AIFs) Regulations (S.L. 370.34)
  • Investment Services Act (Exemption) Regulations (S.L. 370.02)
  • Investment Services Act (Fees) Regulations (S.L. 370.03)
  • Trusts and Trustees (Exemption) Regulations (S.L. 331.02)
  • Companies Act (Investment Companies with Variable Share Capital) Regulations (S.L. 386.02)

What’s Next?

Interested parties are encouraged to submit their feedback on the proposed legislative amendments to the MFSA by 22 June 2023. The MFSA then intends to issue one holistic feedback statement addressing both consultation documents.

The NPIF regime is a new product that aims to build on the success of the NAIF framework and enhance Malta’s appeal as a fund jurisdiction – particularly for US, UK and other third country investment managers.

'Credit & Financial Institutions' Related News Articles

01
NATURE TRUST AND BANK OF VALLETTA UNVEIL ‘WHAT IS THAT ANIMAL?’ – MALTA’S FIRST LOCAL FAUNA FIELD GUIDE
Bank of Valletta

by Bank of Valletta

2nd June 2024

The European Union Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups Regulations 2024
CSB Group

by CSB Group

5th April 2024

Bank of Valletta has supported this year’s opera by Gioachino Rossini – ‘Armida’
Bank of Valletta

by Bank of Valletta

18th March 2024

Changing the terms of a credit agreement and forbearance policies and measures: new obligations on lenders in consumer and residential property credit agreements
Ganado Advocates

by Ganado Advocates

23rd February 2024

The HSBC Malta Foundation supports Three-Year UM Research Project through RIDT
HSBC Bank Malta p.l.c.

by HSBC Bank Malta p.l.c.

19th February 2024

BOV RETROSPECTIVE EXHIBITION FEATURING WORKS BY NOEL GALEA BASON OFFICIALLY INAUGURATED
Bank of Valletta

by Bank of Valletta

17th January 2024

Goal-line Defenders: Scoring Victory Against Financial Crime with the Three Lines of AML/CFT Defence
CSB Group

by CSB Group

12th January 2024

Agreement reached on the establishment of the Anti-Money Laundering Authority (“AMLA”)
Ganado Advocates

by Ganado Advocates

3rd January 2024

FIAU Thematic Review on Company Service Providers when providing Company Formation Services
Ganado Advocates

by Ganado Advocates

3rd January 2024

Directive 93/13/EEC and mandatory statutory or regulatory provisions in consumer contracts
Ganado Advocates

by Ganado Advocates

3rd January 2024

MiCA Update: Consultation Process on the Proposed Updates to Chapter 3 of the VFA Rulebook
Ganado Advocates

by Ganado Advocates

1st November 2023

Continuing to disclose the topic EU funding for Startups ¦ Startup Definition
Griffiths + Associates Ltd

by Griffiths + Associates Ltd

31st October 2023