Note for Consultation – Implementation of AIFMD

On the 18th June 2013, the Malta Financial Services Authority (MFSA) issued a Note for Consultation on the proposed implementation of the Alternative Investment Fund Managers Directive (‘AIFMD’).

Summarily, the MFSA has, thus far, issued the following five consultation documents on the implementation of the AIFMD:

• 3rd September 2012 – Consultation on the proposed amendments to the Investment Services Act and certain proposed draft regulations. Legal Notices 113, 114, 115 and 116 of 2013 have been published in the Government Gazette on 8th March 2013 and are available for download from the Authority’s website.
• 3rd December 2012 – Consultation on the proposed revisions to the Investment Services Rules for Investment Service Providers. The MFSA has issued a feedback statement in this respect on the 6th May 2013.
• 22nd March 2013 – Consultation on the Rulebook applicable to De Minimis Licence Holders. The MFSA has issued a feedback statement in this respect on the 21st May 2013.
• 26th March 2013 – Consultation on the Rulebook applicable to Alternative Investment Funds. This consultation period ran until the 26th April 2013. The MFSA is currently evaluating the submissions/ feedback received from the industry and will be issuing a feedback statement in the coming weeks.
• 24th May 2013 – Consultation on the proposed changes to the Investment Services Rules for Professional Investor Funds. The consultation process ran until the 6th June 2013. The MFSA is currently evaluating the submissions/ feedback received from the industry and will be issuing a feedback statement in the coming weeks.
• Additionally, on the 27th February 2013 the MFSA issued a Questionnaire on Operational Arrangements of Fund Managers and Self-Managed Schemes with a view to gathering information on the existing operational arrangements adopted by investment fund managers and self-managed schemes licensed in terms of the Investment Services Act and which do not qualify for an exemption in terms of Article 3 of the AIFMD. The MFSA is currently evaluating the submissions/ feedback received from the industry and it is anticipated that it will issue formal Guidance to the industry on delegation arrangements and the requirements which must be complied with in terms of the AIFMD.

In the context of the AIFMD transposition process, the MFSA is now proposing to revise the Investment Services Rules for Retail Collective Investment Schemes. Non-UCITS Retail Schemes fall squarely within the definition of an AIF in terms of the AIFMD.

Accordingly, Part A (The Application Process) and Part BI (Standard Licence Conditions) are to be amended so as to align the relative Rules with the requirements of the AIFMD. Moreover, Part BI of the Rules is being further amended to transpose the provisions relating to Article 3 AIFMD in relation to the de minimis self-managed Schemes and supplemented by a new Appendix 9 dealing with the specific information which must be reported on the AIF.

By 22nd July 2013 Member States are required to adopt and publish the laws, regulations and administrative provisions necessary to comply with the provisions of the AIFMD.

Should you wish to receive any guidance, please send your question/s and observations here.