Publication of Circular on a proposed Temporary Permission Regime for UK entities passporting into Malta

On the 28th March 2019, the Malta Financial Services Authority (“MFSA”) issued circular on the proposed Temporary Permission Regime (“TPR”) which will be applicable to UK licensed investment funds, asset managers and investment firms (“UK entities” or “UK entity”). The TPR will come into effect when the United Kingdom withdraws from the European Union and only in the event an agreement on transitional arrangements is not in place (“No-Deal Brexit”). This TPR aims to mitigate potential risks of a No-Deal Brexit scenario for UK entities which already passport their services and activities into Malta.

Once the TPR is granted to a UK entity, it will be valid for only twelve (12) months after the No-Deal Brexit and would enable the particular UK entity to:

  1. obtain the necessary authorisation; and/or

  2. terminate existing contracts in an orderly manner; and/or

  3. proceed with the assignment of the contracts to a duly authorised entity.

In relation to the TPR, it is urgently required for any UK entity to analyse its compliance with the TPR and notify the MFSA of its future intentions.

Please feel free to contact us for more information on TPR, including the process of notification procedure in relation to the TPR.