On the 29th July 2025 the Malta Financial Services Authority (“MFSA”) issued its Investment Services Supervision Regulatory Briefing covering developments for the period 1st January 2025 – 24th July 2025. This update is essential reading for all stakeholders in the asset management and investment services sector, summarising key regulatory changes, supervisory priorities, and European-level developments.
Key Highlights:
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Expanded Notified Professional Investor Fund (“NPIF”) Framework: The MFSA has extended the NPIF regime to allow self-managed structures, removing the previous requirement for a third-party manager.
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New Special Limited Partnership Funds (“SLPFs”) Framework: A dedicated structure for non-retail funds using special limited partnerships without legal personality was introduced, requiring MFSA-approved Limited Partnership Agreements.
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Total Expense Ratio (“TER”) Review Findings: A review of over 390 Malta-licensed funds found that 65 had high TERs. Fund managers are urged to keep TERs within reasonable limits.
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Tokenisation of Fund Units: A position paper outlines requirements for blockchain-based fund units, including smart contract management, Distributed Ledger Technology expertise, and robust risk controls.
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Revised Reporting Obligations: Updates to templates for MiFID reporting, Annual Fund Return (including TER disclosure), and Fund Managers’ Appendix 2B were introduced.
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European Securities and Markets Authority (“ESMA”) Guidance on Sustainability Claims: The MFSA highlighted the ESMA’s guidance to ensure that sustainability-related claims are accurate, easy to understand, backed by credible evidence, and updated promptly in response to material changes.
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The EU and the European Banking Authority (“EBA”) Developments: The EBA and European Commission announced changes to the Data Point Mode (“DPM”) reporting model (moving to XBRL-CSV by 2026), MiFID II research rules, and simplified EU sustainability and taxonomy regulations.
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Liquidity Management Tools (“LMTs”): ESMA finalised guidelines requiring Undertakings for Collective Investment in Transferable Securities (“UCITS”) and open-ended Alternative Investment Fund (“AIF”) to implement at least two LMTs, enhancing fund resilience during market stress.
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Sustainability Disclosures & Risk Integration: Ongoing supervisory focus on how firms integrate sustainability risks under UCITS, Alternative Investment Fund Managers Directive (“AIFMD”), and Sustainable Finance Disclosure Regulation (“SFDR”) frameworks.
We encourage all investment firms, fund managers, and stakeholders to review the full MFSA circular for detailed guidance and regulatory expectations.
