In view of the Alternative Investment Fund Managers Directive (AIFMD) coming into force on 22nd July 2013, Category 2 Licence Holders authorised to provide investment management services to collective investment schemes (including UCITS Management Companies that manage non-UCITS Funds); Self-Managed Retail Non-UCITS Schemes; and Professional Investor Schemes (Experienced, Qualifying & Extraordinary) licensed in terms of the Investment Services Act, 1994 (the “Act”), will be issued with a revised licence to operate as AlFMs, unless they opt for the ‘de minimis’ classification in accordance with the provisions of the AIFMD.
Licence Holders’ Business Model
Licence Holders’ have to base their decision on their business model, that is, whether they can be categorised as ‘de minimis’ AIFM and do not intend to opt to be licensed as an AIFM in terms of the AIFMD; or whether they can be categorised as a ‘de minimis’ AIFM but intend to opt to be licensed as an AIFM in terms of the AIFMD or their activities require them to be re-licensed as an AIFM in terms of the AIFMD. On this basis, Licence holders are therefore required to compile one of the following self-assessment questionnaires as issued by MFSA, as applicable:
- Self-Assessment for Fund Managers and Self-Managed Collective Investment Schemes Applying as ‘de minimis’ Licence Holders
This questionnaire is applicable to licence holders that determine that they fall within the ‘de minimis’ AIFM category and do not intend to opt to be licensed as a full AIFM; or
- Self-Assessment for Fund Managers and Self-Managed Collective Investment Schemes applying for an AIFM licence
This questionnaire applies to Licence Holders that determine that they fall within the ‘de minimis’ AIFM category but intend to opt to be licensed as an AIFM or determine that their activities warrant to be licensed as an AIFM in terms of the AIFMD.
MFSA’s covering note and the respective self-assessment questionnaires can be downloaded here.
A one year transitional period with effect from 22nd July 2013 will apply to existing fund managers and self-managed schemes to register either as a ‘de minimis’ AIFM or to apply for a full AIFM licence and to satisfy the requirements of the AIFMD. Hence, such Questionnaires are to be submitted to the MFSA by 31st March 2014.
Existing Licence Holders who wish to be AIFM compliant and seek an AIFM licence as from 22nd July 2013, are to notify the Authority accordingly, and submit the relevant self–assessment questionnaire by not later than the 10th June 2013.
The issuance of such revised licences will depend on the quality of documentation provided and any additional due diligence enquiries that may need to be undertaken in the case of the appointment of key employees. Therefore, fund managers and self-managed schemes are encouraged to complete the self-assessment questionnaire form as comprehensively and in submit the same in a timely manner.