Following the postponement of the review of the licence upgrade of Futura Investment Management Limited (“Futura”) to a full AIFM and the subsequent directive issued by the Malta Financial Services Authority to Futura on 9 June 2016 to inter alia: (a) restrict its business in line with the de minimis threshold stipulated in Article 3(2) of the AIFMD, and (b) to comply with Section 1 (General Requirements) to Section 8 (Supplementary Reporting Obligations for Licence Holders Managing Specific Types of AIFs – Leveraged AIFs) of Part BIII of the Investment Services Rules for Investment Services Providers until such time as the assets under management figure of Futura falls below €100 million. On 9 June 2016, the MFSA issued a separate directive to Bank of Valletta plc as Depositary of Futura Funds SICAV plc in terms of Article 15 of the Investment Services Act. In this regard, the MFSA directed Bank of Valletta plc as Depositary to upgrade the existing Custody Agreement with Futura Funds SICAV plc and to make it fully AIFMD compliant, in particular to reflect the provisions of Article 21 of the AIFMD under the assets under management figure of Futura falls below €100 million or as otherwise directed by the MFSA. The revised Custody Agreement would inter alia require Bank of Valletta plc as Depositary to:

1) undertake cash flow monitoring duties with respect to transactions conducted by Futura Funds SICAV plc;

2) review compliance with the investment restrictions of Futura Funds SICAV plc; and

3) ensure that the asset valuation is carried out in line with the valuation rules of Futura Funds SICAV plc as well as the provisions of Article 19 of the AIFMD.

This is apart from other obligations pertaining to the depositary as arising from Article 21 of the AIFMD.

UPDATE WITH EFFECT FROM 14 JULY 2021

Having considered the goodwill demonstrated by Futura Investment Management Ltd and Futura Funds SICA V plc the Authority has decided to settle pending issues relating to the said companies subject to a number of terms. As part of the settlement, the Authority has decided to lift the directives issued by it on the 9 June 2016 against Futura Investment Management Limited (“Futura Manco”) and REYL & Cie (Malta) Ltd as the depositary thereof and, consequently, Futura Manco has agreed to withdraw, immediately and unconditionally, its appeal against the said directives before the Financial Services Tribunal bearing reference number FSTO8/16.

MFSA Ref: 54-2016