Changes to the Appendix 2B Fund Manager Return

On the 21st July 2021, the Malta Financial Services Authority (“MFSA”) issued a circular regarding the changes to Appendix 2B Fund Manager Return, triggered by the Investment Firms Regulation and Directive (“IFRD”). The purpose of the circular was to render the industry aware of the changes which were undertaken to fully align the content of the Appendix 2B Return template with the IFRD.

The MFSA makes reference to the final report issued by the European Banking Authority (“EBA”) on 16th December 2020 which lays down additional items for deduction from the Fund Managers total expenses, as part of the Fixed Overhead Requirement calculation. In view of this development, the following items listed will be added to the Fixed Overhead Requirement calculator in Sheet 5 of Appendix 2B:

  • Expenditures from taxes where they fall due in relation to the annual profits of the Fund Manager;
  • Payments related to contract-based profit and loss transfer agreements according to which Fund Manger is obliged to transfer, following the preparation of its annual financial statements, its annual result to the parent undertaking; and
  • Expenses related to items that have already been deducted from own funds in accordance with Article 36(1) of Regulation (EU) 2013/575.

Licence holders are requested to ensure that the new Appendix 2B template, which is available on the MFSA website, is made use of for the completion of all future Appendix 2B submissions.

Should you wish to receive further information on the above, please contact us and we will be happy to provide you with customised information according to your needs.