The Malta Financial Services Authority (“MFSA”) has issued a circular addressed to Fund Managers and Collective Investment Schemes (“CIS”) falling within the scope of the Securities & Markets Supervision Function. In order to conform with the regulatory updates issued at the European Union (“EU”) level, the authority has updated certain sections of its rulebooks as follows:
The revised ESMA guidelines on stress test scenarios under the Money Market Funds (“MMF”) regulation have been reflected in the rulebooks. The hyperlinks to the European Securities and Markets Authority (“ESMA”) on stress test scenarios under the MMF regulation have been updated with cross references to reflect the most recent ESMA version published on the 29th June 2021.
Furthermore, the ESMA Guidelines on stress test scenarios under the MMF regulation shall apply to MMFs or managers of MMFs when executing stress testing in accordance with Article 28 of the MMF Regulation.
- SLC 7.04 of Part BII of the Standard Licence Conditions applicable to Investment Services Licence Holders which qualify as UCITS Management Companies (section 7: Supplementary Licence conditions applicable to UCITS Manager managing MMFs)
- SLC 13.02 of Part BIII of the Standard Licence Conditions applicable to Investment Services Licence Holders which qualify as Alternative Investment Fund Managers (“AIFM”) – (section 13: Supplementary Licence conditions applicable to AIFMs managing MMFs)
- SLC 8.44 of Part B of the Standard Licence Conditions Standard applicable to Alternative Investment Funds (“AIF”) – (section 8 – Supplementary Licence conditions applicable to Self-managed AIFs: Permanent Risk Management Function)
- SLC 25.03 of Part BII of the Standard Licence Conditions Standard applicable to Malta based Retail UCITS Collective Investment Schemes (section 25 – Supplementary Licence Conditions applicable to Schemes set up as Money Market Funds).
Updates to the Rulebooks in view of the ESMA Guidelines on article 25 of Directive 2011/61/EU on Alternative Investment Fund Managers (“the Directive”).
SLC 8.90 of Part B of the Alternative Investment Funds directive and SLC 8.01 of Part BIII of the Directive have been updated and revised by way of a cross reference to the ESMA Guidelines on article 25 of the Directive.
For specific instances when an AIFM managing leveraged AIFs does not comply with any measure(s) or restriction(s) imposed by the MFSA in accordance with Article 25(3) of the AIFMD, SLC 8.95 of Part B of the Directive has been introduced. This provision allows the MFSA to enforce and safeguard the stability and integrity of the financial system and to avoid the disorder of the financial markets.
SLC 3.14 of the Directive has been updated to reflect the ESMA Guidelines on Marketing Communications, the aforementioned guidelines will also be applied to Undertakings for the Collective Investment in Transferable Securities (“UCITS”) through an update to the Conduct of Business Rulebook which is to be expected in the near future.
Feel free to contact us should you wish to receive further assistance on the above.