1.0 Publication of new Investment Services Rules
With effect from the 1st November, 2007, the Investment Services Guidelines have ceased to exist and have been replaced by the Investment Services Rules for Investment Services Providers and the Investment Services Rules for Recognised Persons and Retail Collective Investment Schemes.
1.1 New Format & Structure of MFSA Regulatory Requirements issued in terms of the Investment Services Act, 1994
MFSA has undertaken a complete overhaul of the structure of the Investment Services Guidelines (which are now being referred to as the ‘Investment Services Rules’ in accordance with the amendment to Article 6(2)(b) of the Investment Services Act brought about by Act XX of 2007).
In this regard, the Investment Services Rules issued by MFSA are now divided into four separate Rule Books as follows:
a. Investment Services Rules for Investment Services Providers.
These Investment Services Rules have come into force on the 1 st November, 2007 and set out MFSA’s regulatory regime applicable to Investment Services Licence Holders, including Custodians and Managers of Collective Investment Schemes. They also include the Rules which are applicable to European Investment Firms establishing a branch in Malta and to European Management Companies which provide services in Malta, on a cross border basis in terms of the passporting provisions set out in the MIFID and UCITS Directives respectively. These Rules primarily transpose the requirements of the MIFID.
These rules are accessible on MFSA’s Website by clicking on Securities/Investment Services/Rules for Investment Services Providers and Related Guidance Notes.
b. Investment Services Rules for Retail Collective Investment Schemes.
The MFSA has issued Rules which set out MFSA’s regulatory regime applicable to Retail Collective Investment Schemes. These Rules include updated Standard Licence Conditions applicable to Maltese Non-UCITS and Maltese UCITS Collective Securities Unit 2 Investment Schemes and are applicable to new retail schemes as from 1st November 2007. Existing Schemes, licenced prior to the 1st November (including new sub-funds of such existing schemes), have been granted a transitional period up to the 23rd July 2008 to comply with these new Rules.
These Rules are accessible on MFSA’s web-site by selecting ‘Securities/ Collective Investment Schemes/ Rules for Retail Collective Investment Schemes’.
c. Investment Services Rules for Recognised Persons and Retail Collective Investment Schemes.
The above-named Rules, which have been issued by MFSA on 1st November 2007, reflect the requirements for Recognised Persons, namely Recognised Fund Administrators and Recognised Private Collective Investment Schemes which were included in Parts A and B of the Investment Services Guidelines. They also include the Standard Licence Conditions applicable to Maltese Non-UCITS and Maltese
UCITS Collective Investment Schemes existing as at 1 st November 2007, including any new sub-funds of such schemes. The Standard Licence Conditions referred to above will reflect the requirements for such schemes which were included in Part C.II and Part C.III of the Investment Services Guidelines.
These Rules are accessible on MFSA’s web-site by selecting ‘Securities/ Collective Investment Schemes/ Rules for Recognised Persons and Retail Collective Investment Schemes’
d. Investment Services Rules for Professional Investor Funds.
The above named Rules reflect the requirements which were laid out in the Guidelines for Professional Investor Funds. These Investment Services Rules will apply as from 1st November, 2007.
These Rules are accessible on MFSA’s web-site by selecting ‘Securities/ Collective Investment Schemes/ Investment Services Rules.
2.0 Guidance Notes to the Investment Services Rules for Investment Services Providers (“the Guidance Notes”).
MFSA has drafted a set of Guidance Notes with a view to providing Licence Holders with best practice guidance on the manner in which they may comply with certain Standard Licence Conditions contained in Part B of the Investment Services Rules for Investment Services Providers.
In preparing these Guidance Notes, MFSA has referred extensively to the Level 3 guidance issued by the Committee of European Securities Regulators (‘CESR’). Thisguidance is available directly on CESR’s web- site located at www.cesr.eu .
These Guidance Notes are available on the MFSA’s website by selecting Securities/Investment Services/Guidance Notes for Investment Services Licence Holders and related Guidance Notes.
3.0 Publication of new Financial Market Rules
Further to MFSA’s circular dated 27th July 2007, the MFSA has issued – by virtue of its powers under article 5 of the Financial Markets Act, 1990 – the Financial Market Rules came into force on the 1st November, 2007 and which replaced the Notification Directives which were applicable to Recognised Investment Exchanges until the 31st October, 2007.
The Financial Market Rules transpose certain provisions of the MIFID and refer to the new Legal Notices issued under the Financial Markets Act, 1990. Moreover, the current notification requirements on Capital and Shareholding have been removed since these are now to be found in the new Article 4B of the amended Financial Markets Act, 1990. A number of new appendices also feature in the Financial Market Rules.
A copy of the Financial Market Rules is available on the MFSA’s website by selecting ‘Securities/Financial Markets/Financial Market Rules’.
