Investment Services Supervision The Investment Services Supervision function is responsible for authorising and supervising investment firms, fund managers, collective investment schemes, recognised private collective investment schemes, registered tied agents, and recognised administrators. FIND OUT MORE

Investment Services Supervision

Through its supervision, the function assesses compliance with prudential requirements, as well as the adequacy of systems and controls, governance arrangements, risk management and risk mitigation, within licensed entities falling within its remit. The function applies various onsite and desk-based supervisory tools to achieve its objectives.

Investment Firms

Fund Managers

Custodians / Depositaries

Funds

Recognised Persons

Investment Firms

Subsidiary Legislation

S.L. 370.02 – Investment Services Act (Exemption) Regulations

S.L. 370.03 – Investment Services Act (Fees) Regulations

L.N. 20 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022

L.N. 62 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022 (L.N. 20 of 2022) – Commencement Notice

S.L. 370.04 – Investment Services Act (Prospectus of Collective Investment Schemes) Regulations

S.L. 370.05 – Investment Services Act (Control of Assets) Regulations

S.L. 370.06 – Investment Services Act (Recognition of Private Collective Investment Schemes) Regulations

S.L. 370.08 – Investment Services Act (Investment Advertisements and Prospectus Exemption) Regulations

S.L. 370.09 – Investor Compensation Scheme Regulations

S.L. 370.10 – European Passport Rights for Investment Firms Regulations

S.L. 370.12 – Investment Services Act (Performance Fees) Regulations

S.L. 370.13 – European Passport Rights for Persons Operating Multilateral Trading Facilities Regulations

S.L. 370.14 – Investments Services Act (Tied Agents) Regulations

S.L. 370.15 – Investment Services Act (Supervisory Review) Regulations

L.N. 30 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022

L.N. 57 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022 (L.N. 30 of 2022) – Commencement Notice

S.L. 370.16 – Investment Services Act (Contractual Funds) Regulations

S.L. 370.18 – Investment Services Act (Marketing of UCITS) Regulations

L.N. 130 of 2022 – Investment Services Act (Marketing of UCITS) (Amendment) Regulations, 2022

S.L. 370.19 – Investment Services Act (UCITS Mergers) Regulations

S.L. 370.20 – Investment Services Act (UCITS Management Company Passport) Regulations

S.L. 370.21 – Investment Services Act (Marketing of Alternative Investment Funds) Regulations

L.N. 129 of 2022 – Investment Services Act (Marketing of Alternative Investment Funds) (Amendment) Regulations, 2022

S.L. 370.22 – Investment Services Act (Alternative Investment Fund Manager) (Passport) Regulations

S.L. 370.23 – Investment Services Act (Alternative Investment Fund Managers) Regulations

S.L. 370.24 – Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations

S.L. 370.25 – CRD (Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 31 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

L.N. 55 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022 (L.N. 31 of 2022) – Commencement Notice

S.L. 370.26 – Investment Services Act (European Venture Capital Funds) Regulations

S.L. 370.27 – Investment Services Act (European Social Entrepreneurship Funds) Regulations

S.L. 370.28 – Investment Services Act (Access to Emissions Allowance Auction) Regulations

S.L. 370.29 – Over-Reliance on Credit Rating Regulations

S.L. 370.30 – Investment Firms (Reorganisation and Winding-up) Regulations

S.L. 370.31 – Investment Services Act (European Long-Term Investment Funds) Regulations

S.L. 370.32 – Investment Services Act (Custodians of Collective Investment Schemes) Regulations

S.L. 370.33 – Investment Services Act (UCITS Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.34 – Investment Services Act (List of Notified AIFs) Regulations

S.L. 370.35 – Local Central Counterparties Access Regulations

S.L. 370.36 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting Regulations

L.N. 89 of 2022 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting (Amendment) Regulations, 2022

S.L. 370.37 – Data Reporting Services Regulations

L.N. 136 of 2022 – Data Reporting Services (Amendment) Regulations, 2022

User Guidelines – L.N. 136 of 2022

S.L. 370.38 – Algorithmic Trading Regulations

S.L. 370.39 – Multilateral Trading Facilities and Organised Trading Facilities Regulations

S.L. 370.40 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.41 – Markets in Financial Instruments Regulations

S.L. 370.42 – Investment Services Act (Tied Agents) Regulations

S.L. 370.43 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) Regulations

L.N. 21 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third Country Firms) (Amendment) Regulations, 2022

L.N. 58 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) (Amendment) Regulations, 2022 (L.N. 21 of 2022) – Commencement Notice

S.L. 370.44 – Investment Services Act (Money Market Funds) Regulations

S.L. 371.15 – Supervisory Consolidation Regulations

L.N. 495 of 2021 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021

L.N. 37 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021 (L.N. 495 of 2021) (S.L. 370.46) – Commencement Notice

L.N. 29 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022

L.N. 56 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022 (L.N. 29 of 2022) – Commencement Notice

L.N. 24 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022

L.N. 61 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022 (L.N. 24 of 2022) (S.L. 370.49) – Commencement Notice

S.L. 371.19 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 135 of 2022 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

User Guidelines – L.N. 135 of 2022

L.N. 22 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022

L.N. 59 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022 (L.N. 22 of 2022) (S.L. 370.47) – Commencement Notice

L.N. 23 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022

L.N. 60 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022 (L.N. 23 of 2022) (S.L. 370.48) – Commencement Notice

L.N. 131 of 2022 – Investment Services Act (Cross-Border Distribution of Funds) Regulations, 2022

Superseded Versions and Links

Part A – The Application Process: Investment Services Rule for Investment Services Providers

Part BI: Rules applicable to Investment Services Licence Holders which qualify as MiFID Firms (applicable up to 5 August 2021)

Part BI – Standard Licence Conditions applicable to Investment Services Licence Holders which qualify as MiFID Firms (applicable up to 2 January 2018)

Appendix 1A – Financial Resources Requirements and Guidance on the compilation of the Financial Return for Category 1, Category 2 (which qualify as Fund Managers) and Category 4b Investment Services Licence Holder

Appendix 1B – Capital Resources Requirement and Guidance on the compilation of the automated COREP Return for Category 2 (which qualify as MiFID Firms), Category 3 and Category 4a Investment Services Licence Holders

Appendix 1C – Capital Buffers Requirement Applicable to Category 3 Investment Services Licence Holders

Appendix 2A – Financial Return for Category 1 & Category 4b (only)

Appendix 2C – Automated COREP Return

Appendix 3 – Consolidated Capital Resources Requirement and Guidance on the compilation of the automated COREP Return for Consolidations

Appendix 4 – Technical Criteria on the Disclosure Requirements for Investment Services Licence Holders

Appendix 5 – Penalties

Appendix 6 – Insurance Covers

Appendix 7 – Record Keeping

Appendix 8 – Transaction Reporting

Appendix 8 – Transaction Reporting

 Appendix 9 – Definition of ‘Close Links’

 Appendix 10 – Requirements on Risk Management and Internal Capital Adequacy Assessment for Investment Services Licence Holders

 Appendix 11 – Supplementary Licence Conditions on Risk Management, Counterparty Risk Exposure and Issuer Concentration

 Appendix 12 – Remuneration Policy

 Appendix 13 – Transparency Requirements

 Appendix 16 – Complaints handling

Specimen Subordinated Loan Agreement

ESMA Documents

31/03/2022

Final Report - Guidelines on Certain Aspects of the MiFID II Remuneration Requirements

02/02/2022

Supervisory Briefing on Supervisory Expectations in Relation to Firms Using Tied Agents in the MiFID II Framework

27/01/2022

Consultation Paper - Guidelines on Certain Aspects of the MiFID II Suitability Requirements

03/01/2022

Final Report - Guidelines on Certain Aspects of the MiFID II Appropriateness and Execution-Only Requirements

19/11/2021

Questions and Answers - On MiFID II and MiFIR investor protection and intermediaries topics

01/10/2021

Call for evidence - On the European Commission mandate on certain aspects relating to retail investor protection

24/09/2021

Consultation Paper - Review of the MiFID II framework on best execution reports

21/07/2021

Public Statement - ESMA presents the results of the 2020 Common Supervisory Action (CSA) on MiFID II suitability requirements

19/07/2021

Consultation Paper - Guidelines on certain aspects of the MiFID II remuneration requirements

15/07/2021

Public Statement - SPACs: prospectus disclosure and investor protection considerations

29/01/2021

Consultation Paper - Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements

13/01/2021

Public Statement -Reminder to firms of the MiFID II rules on ‘reverse solicitation’ in the context of the recent end of the UK transition period

21/12/2020

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

06/11/2020

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

05/06/2020

Guidelines On certain aspects of the MiFID II compliance function requirements

28/05/2020

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

12/05/2020

Public Statement - COVID-19: Reminder of firms’ MiFID II conduct of business obligations in the context of increasing retail investor activity

08/04/2020

ESMA’s Technical Advice to the Commission on the impact of the inducements and costs and charges disclosure requirements under MiFID II

01/04/2020

Public Statement - COVID-19: Clarification of issues related to the publication of reports by execution venues and firms as required under RTS 27 and 28

23/03/2020

Public Statement - COVID-19: Clarification of issues related to the application of MiFID II requirements on the recording of telephone conversations

04/02/2020

ESMA Q & A on MiFID II and MiFIR Investor Protection and Intermediaries Topics

03/02/2020

ESMA technical advice to European Commission on the effects of the product intervention measures

31/01/2020

Draft technical standards on the provision of investment services and activities in the Union by third-country firms under MiFID II and MiFIR

02/01/2020

ESMA Q & A on MiFID II and MiFIR Investor Protection and Intermediaries Topics

03/10/2019

ESMA Q & A on MiFID II and MiFIR Investor Protection and Intermediaries Topics

17/07/2019

Call for evidence - Impact of the inducements and costs and charges disclosure requirements under MiFID II

11/07/2019

Public Statement - Statement of ESMA on the application of product intervention measures under Article 40 and 42 of Regulation (EU) No. 600/2014 (1) (MiFIR) by CFD providers

11/07/2019

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

15/07/2019

Consultation Paper - Guidelines on certain aspects of the MiFID II compliance function requirements

29/05/2019

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

30/04/2019

Final Report - ESMA’s technical advice to the European Commission on integrating sustainability risks and factors in MiFID II

12/04/2019

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

12/11/2018

MiFID II Supervisory briefing - Appropriateness and execution-only

09/11/2018

Q&A On ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and Binary options to retail clients

03/10/2018

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

28/09/2018

Q&A On ESMA’s temporary product intervention measures on the marketing, distribution or saleof CFDs and Binary options to retail clients

30/07/2018

Q&A On ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and Binary options to retail clients

13/07/2018

Q&A On ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and Binary options to retail clients

13/07/2018

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

01/06/2018

Q&A On ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and Binary options to retail clients

30/05/2018


Statement of the EBA and ESMA on the treatment of retail holdings of debt financial instruments subject to the Bank Recovery and Resolution Directive

28/05/2018

Final Report - Guidelines on certain aspects of the MiFID II suitability requirements

25/05/2018

Final Report - Guidelines on certain aspects of the MiFID II suitability requirements

23/03/2018

Q&A On MiFID II and MiFIR investor protection and intermediaries topics

18/12/2017


Q&A On MiFID II and MiFIR investor protection and intermediaries topics

20/11/2017


Q&A On MiFID II and MiFIR investor protection and intermediaries topics

16/11/2017


Q&A On MiFID II and MiFIR investor protection and intermediaries topics

11/10/2017

Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU
Annex template for the assessment of collective suitability

11/10/2017

Q&As on MiFID II and MiFIR investor protection topics

12/07/2017

Consultation Paper Guidelines on certain aspects of the MiFID II Suitability Requirements

10/07/2017

Questions and Answers on MiFID II and MiFIR Investor Protection and Intermediaries Topics

02/06/2017

Guidelines on MiFID II product governance requirements

04/04/2017

Questions and Answers on MiFID II and MiFIR investor protection topics

31/03/2017

Q&A relating to the provision of CFDs and other speculative products to retail investors under MiFiDD

16/12/2016

Q&As on MIFID II and MiFIR investor protection topics

28/10/2016


Consultation Paper - Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU
Annex I - Template for Assessment of Collective Suitability

11/10/2016

Q&As relating to the provision of CFDs and other speculative products to retail investors under MiFID

10/10/2016

Q&As on MiFID II and MiFIR investor protection topics

05/10/2016

Consultation Paper - Draft guidelines on MiFID II product governance requirements

26/07/2016

Warning about CFDs, binary options and other speculative products

25/07/2016

Q&As relating to the provision of CFDs and other speculative products to retail investors under MiFID

02/06/2016

MiFID practices for firms selling financial instruments subject to the BRRD resolution regime.

01/06/2016

Questions and Answers Relating to the provision of CFDs and other speculative products to retail investors under MiFID

08/04/2016

Questions and Answers Relating to the provision of CFDs and other speculative products to retail investors under MiFID

07/04/2016

MiFID Suitability Requirements Peer Review Report

21/12/2015

Guidelines - Complex debt instruments and structured deposits

01/12/2015

Guidelines - Complex debt instruments and structured deposits

01/10/2015

Guidelines - The application of the definitions in Sections C6 and C7 of Annex I of Directive 2004/39/EC (MiFID)

10/07/2015

Final Report - MiFID II/MiFIR draft Technical Standards on authorisation, passporting, registration of third country firms and cooperation between competent authorities

24/04/2015

Consultation Paper - Draft guidelines for the assessment of knowledge and competence

25/03/2015

Consultation Paper - Draft guidelines on complex debt instruments and structured deposits

03/03/2015


ESMA Questionnaires – Cost and Benefits Analysis on MiFID II


Questionnaire in relation to the ancillary activity exemption Article 2(1)(j), MiFID II for firms

Questionnaire in relation to position limits and position reporting, Articles 57 and 58, MiFID II for trading venues

Questionnaire in relation to position limits and position reporting, Articles 57 and 58, MiFID II for firms

Questionnaire on equity transparency

Questionnaire on microstructural issues

Questionnaire on RTS 22, RTS 24, RTS 32, RTS 36, RTS 37, RTS 38

Questionnaire on non-equity transparency

Data collection

22/12/2014

ESMA’s Technical Advice to the Commission on MiFID II and MiFIR

22/12/2014

ESMA Consultation Paper - MiFID II / MiFIR

22/05/2014

ESMA Consultation Paper - MiFID II / MiFIR

22/05/2014

ESMA Discussion Paper - MiFID II / MiFIR

07/02/2014

ESMA Opinion - MiFID practices for firms selling complex products

Investment Firms Conduct FAQs

Frequently Asked Questions – MIFID II

 

Investment Firms Webinar FAQs

Investment Firms Regulation and Directive Webinar FAQs

 Investment Services Circulars

 

 

Conduct Supervision Circulars

 

In this section, you will find the Circulars issued by the Authority which are applicable to the conduct supervision of investment firms. These Circulars are a means of keeping the industry updated mainly on regulatory matters. Circulars may be issued to provide updates and clarifications in relation to requirements emanating from investments related regulatory requirements (for example the revised Markets in Financial Instruments Directive known as MiFIDII); to inform the industry on proposed changes to the existing requirements as indicated in the Conduct of Business Rulebook and to inform the industry on any relevant documents published by ESMA.

 

Conduct Supervision Investments Circulars

 

Consultation Documents and Feedback Statements

 

In this section you will find the Consultation Documents issued by the MFSA and which are of interest to investment firms These documents are issued to explain to the industry any new regulatory requirements which the Authority may be proposing to implement and the manner in which these will be implemented. During the consultation period, investment firms will have the opportunity to provide their feedback which the Authority will review. Following the consultation period, the Authority may issue the Feedback statement with a summary of the comments received in the course of the consultation period on that particular topic and the final position of the Authority with respect to the matters forming the subject of the consultation.

 

 Consultation Documents and Feedback Statements

Fund Managers

In this section you will find the Acts of Parliament which lay down the framework of the regulatory regime applicable to investment firms. These provide for the regulatory structure for the supervision of these entities and include, amongst others, the powers of the Authority to grant, refuse, cancel and suspend licences issued to investment firms and to impose sanctions on these entities in specific circumstances. These would also contain enabling clauses allowing the Minister responsible for the regulation of financial services to issue subsidiary legislation as well as the MFSA, as competent authority, to issue Rules to further supplement the provisions in the main Act.

Subsidiary Legislation

S.L. 370.02 – Investment Services Act (Exemption) Regulations

S.L. 370.03 – Investment Services Act (Fees) Regulations

L.N. 20 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022

L.N. 62 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022 (L.N. 20 of 2022) – Commencement Notice

S.L. 370.04 – Investment Services Act (Prospectus of Collective Investment Schemes) Regulations

S.L. 370.05 – Investment Services Act (Control of Assets) Regulations

S.L. 370.06 – Investment Services Act (Recognition of Private Collective Investment Schemes) Regulations

S.L. 370.08 – Investment Services Act (Investment Advertisements and Prospectus Exemption) Regulations

S.L. 370.09 – Investor Compensation Scheme Regulations

S.L. 370.10 – European Passport Rights for Investment Firms Regulations

S.L. 370.12 – Investment Services Act (Performance Fees) Regulations

S.L. 370.13 – European Passport Rights for Persons Operating Multilateral Trading Facilities Regulations

S.L. 370.14 – Investments Services Act (Tied Agents) Regulations

S.L. 370.15 – Investment Services Act (Supervisory Review) Regulations

L.N. 30 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022

L.N. 57 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022 (L.N. 30 of 2022) – Commencement Notice

S.L. 370.16 – Investment Services Act (Contractual Funds) Regulations

S.L. 370.18 – Investment Services Act (Marketing of UCITS) Regulations

L.N. 130 of 2022 – Investment Services Act (Marketing of UCITS) (Amendment) Regulations, 2022

S.L. 370.19 – Investment Services Act (UCITS Mergers) Regulations

S.L. 370.20 – Investment Services Act (UCITS Management Company Passport) Regulations

S.L. 370.21 – Investment Services Act (Marketing of Alternative Investment Funds) Regulations

L.N. 129 of 2022 – Investment Services Act (Marketing of Alternative Investment Funds) (Amendment) Regulations, 2022

S.L. 370.22 – Investment Services Act (Alternative Investment Fund Manager) (Passport) Regulations

S.L. 370.23 – Investment Services Act (Alternative Investment Fund Managers) Regulations

S.L. 370.24 – Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations

S.L. 370.25 – CRD (Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 31 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

L.N. 55 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022 (L.N. 31 of 2022) – Commencement Notice

S.L. 370.26 – Investment Services Act (European Venture Capital Funds) Regulations

S.L. 370.27 – Investment Services Act (European Social Entrepreneurship Funds) Regulations

S.L. 370.28 – Investment Services Act (Access to Emissions Allowance Auction) Regulations

S.L. 370.29 – Over-Reliance on Credit Rating Regulations

S.L. 370.30 – Investment Firms (Reorganisation and Winding-up) Regulations

S.L. 370.31 – Investment Services Act (European Long-Term Investment Funds) Regulations

S.L. 370.32 – Investment Services Act (Custodians of Collective Investment Schemes) Regulations

S.L. 370.33 – Investment Services Act (UCITS Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.34 – Investment Services Act (List of Notified AIFs) Regulations

S.L. 370.35 – Local Central Counterparties Access Regulations

S.L. 370.36 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting Regulations

L.N. 89 of 2022 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting (Amendment) Regulations, 2022

S.L. 370.37 – Data Reporting Services Regulations

L.N. 136 of 2022 – Data Reporting Services (Amendment) Regulations, 2022

User Guidelines – L.N. 136 of 2022

S.L. 370.38 – Algorithmic Trading Regulations

S.L. 370.39 – Multilateral Trading Facilities and Organised Trading Facilities Regulations

S.L. 370.40 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.41 – Markets in Financial Instruments Regulations

S.L. 370.42 – Investment Services Act (Tied Agents) Regulations

S.L. 370.43 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) Regulations

L.N. 21 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third Country Firms) (Amendment) Regulations, 2022

L.N. 58 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) (Amendment) Regulations, 2022 (L.N. 21 of 2022) – Commencement Notice

S.L. 370.44 – Investment Services Act (Money Market Funds) Regulations

S.L. 371.15 – Supervisory Consolidation Regulations

L.N. 495 of 2021 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021

L.N. 37 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021 (L.N. 495 of 2021) (S.L. 370.46) – Commencement Notice

L.N. 29 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022

L.N. 56 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022 (L.N. 29 of 2022) – Commencement Notice

L.N. 24 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022

L.N. 61 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022 (L.N. 24 of 2022) (S.L. 370.49) – Commencement Notice

S.L. 371.19 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 135 of 2022 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

User Guidelines – L.N. 135 of 2022

L.N. 22 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022

L.N. 59 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022 (L.N. 22 of 2022) (S.L. 370.47) – Commencement Notice

L.N. 23 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022

L.N. 60 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022 (L.N. 23 of 2022) (S.L. 370.48) – Commencement Notice

L.N. 131 of 2022 – Investment Services Act (Cross-Border Distribution of Funds) Regulations, 2022

Rules pertaining to Licensed Activities

 Part BII: Standard Licence Conditions applicable to Investment Services Licence Holders which qualify as UCITS Management Companies

 Part BIII: Standard Licence Conditions applicable to Investment Services Licence Holders which qualify as AIFMs

 Appendix 1A – Financial Resources Requirements and Guidance on the compilation of the Financial Return for Category 1, Category 2 (which qualify as Fund Managers) and Category 4b Investment Services Licence Holder

 Annex 1 to Appendix 1 – Specimen Subordinated Loan Agreement

 Appendix 2B – Financial Return for Fund Managers

 Appendix 4 – Technical Criteria on the Disclosure Requirements for Investment Services Licence Holders

 Appendix 5 – Penalties

 Appendix 6 – Insurance Covers

 Appendix 7 – Record Keeping

 Appendix 8 – Transaction Reporting

Appendix 9 – Definition of ‘Close Links’

 Appendix 10 – Requirements on Risk Management and Internal Capital Adequacy Assessment for Investment Services Licence Holders

 Appendix 11 – Supplementary Licence Conditions on Risk Management, Counterparty Risk Exposure and Issuer Concentration

 Appendix 12 – Remuneration Policy

 Appendix 13 – Transparency Requirements

 Annex 1 – AIFM – Specific Information to be reported (Article 3(3) and Article 24(1) AIFMD)

 Annex 2 – AIF – Specific Information to be reported (Article 3(3) and Article 24(1) AIFMD)

 Annex 3 – AIF – Specific Information to be reported (Article 24(2) AIFMD)

 Annex 4 – AIF – Specific Information to be reported (Article 24(4) AIFMD)

 Annex 5 – Information on AIFs managed by the AIFM

Appendix 14 – Annual Fund Return

 Appendix 16 – Complaints handling

National Provisions governing marketing requirements for AIFs and UCITS

Last updated on: 17 September 2021

 

In application of Article 1 of the Commission Implementing Regulation (EU) 2021/955, this page contains the information on the national laws, regulations and administrative provisions governing marketing requirements referred to in Article 5(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings.

 

Marketing Requirements for UCITS

 

a) The Format and Content of Marketing Material

 

The format and content of marketing material by UCITS is prescribed in Chapter 1 of the  Conduct of Business Rulebook.  Furthermore, a reference has been included in Rule R.1.2.81 to include the new marketing requirements emanating from Article 4 of the CBDF Regulation and the ESMA Guidelines on Marketing Communications.

 

b) Verification of Marketing Communications by the Authority

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities.  In this regard, it is pertinent to note that it is the responsibility of the UCITS Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the UCITS Management Company if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Passporting Rules

 

Passporting In

European UCITS wishing to market their units in Malta are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein.

 

Passporting Out

Maltese UCITS wishing to market their units in a Member State or EEA State are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein.

 

d) De-notification of arrangements made for marketing

 

Where the UCITS Manager no longer wishes to market its UCITS in another Member State, the UCITS Manager is to submit a notification to the MFSA in terms of Article 4(16) of the Investment Services Act (Marketing of UCITS) Regulations.

The notification is to be submitted to the MFSA on [email protected]

 

Marketing Requirements for AIFs

 

a) The Format and Content of Marketing Material

 

AIFMs shall ensure that all marketing communications addressed to investors are identifiable as such and describe the risks and rewards of purchasing units or shares of an AIF.  All marketing material must be fair, clear and not misleading.

AIFMs shall also note that SLC 3.14 has been introduced in Part BIII of the Investment Services Rules for AIFMs to include the new marketing requirements emanating from Article 4 of the CBDF Regulation and the ESMA Guidelines on Marketing Communications. AIFMs are to note that new requirements are applicable for all AIFs, regardless of the type of target investor.

 

b) Verification of Marketing Communications by the Authority

 

The Authority shall carry out an ex-post review of marketing communications issued by regulated entities.  To note that it is the responsibility of the AIFM Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the AIFM if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Marketing to Retail and Professional Investors

 

AIFMs are to refer to the provisions listed below depending on the target investors of the AIFs managed, as well as the marketing communication addressed to them.

 

Retail Investors:

 

Professional Investors:

 

d) Passporting Rules

 

Passporting In

European AIFs managed by Maltese or European AIFMs wishing to market their units in Malta are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein, as applicable.

 

 

Passporting Out

Maltese AIFs wishing to market their units in a Member State or EEA State are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein, as applicable.

 

e) Distribution of Funds Established in a Non-EU Member State under the National Private Placement Regime

 

EU AIFMs or Non-EU AIFMs wishing to market the units of Non-EU AIFs in Malta are to refer to the notification forms and guidance document listed below, as applicable.

 

f) De-Notification of Arrangements made for Marketing

Where the AIFM no longer wishes to market its AIF/s in another Member State, the AIFM is to submit a notification to the MFSA in terms of Article 3(13) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulations

The notification is to be submitted to the MFSA on [email protected]

 

g) Pre-marketing in the EU by Maltese AIFMs

 

Maltese AIFMs wishing to carry out pre-marketing must submit a notification by email within two weeks of having begun pre-marketing to [email protected] in accordance with Article 3 (20) and Article 4 (25) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulation. 

 

Disclaimer: The MFSA has taken reasonable care to ensure that the information on the national provisions governing marketing requirements of UCITS and AIFs in Malta included on this webpage is up-to-date and complete. The MFSA is not responsible for maintaining external websites and shall not be liable for any error or omission on any external website to which hyperlinks are provided on this webpage.

Summaries of National Provisions governing marketing requirements for AIFs and UCITS

Last updated on: 17 September 2021

 

Marketing Requirements for UCITS

 

a) Notification for the Marketing of Units

 

A European UCITS Scheme may market its units in Malta provided that prior to the commencement of such marketing, the MFSA has received a notification letter in the form and manner prescribed in Article 8 of the Investment Services Act (Marketing of UCITS) Regulations. Particularly, such a notification is to be received by the MFSA from the Authority of the UCITS home Member State or EEA State and is to include the information outlined in Article 8 1(a)-(d) and Article 8 2(a)-(d) of the Regulation.

A Maltese UCITS Scheme intending to market its units in a Member State or EEA State other than Malta must submit a notification letter in the form set out in Schedule C of the Investment Services Rules for Retail Collective Investments Schemes to the MFSA.

 

b) Notification and Prior Approval of Marketing Communications

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities and as such, marketing communications are not subject to prior notification and approval. In this regard, it is pertinent to note that it is the responsibility of the UCITS Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the UCITS Management Company if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

Marketing Requirements for AIFs

 

a) Notification for the Marketing of Units

 

A European AIF may market its units in Malta provided that prior to the commencement of marketing, the MFSA has received a notification letter in the form and manner prescribed in Article 3 or Article 5 (as applicable) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulations.

A Maltese AIF intending to market its units in a Member State or EEA State other than Malta must submit a notification letter in the form set out in Schedule 4 of the Investment Services Rules Alternative Investment Funds to the MFSA.

 

b) Notification and Prior Approval of Marketing Communications

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities and as such, marketing communications are not subject to prior notification and approval. In this regard, it is pertinent to note that it is the responsibility of the AIFM to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the AIFM if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Marketing to Retail Investors and Professional Investors

 

As from 2 August 2021, in terms of Article 4 of the Cross-Border Distribution of Funds Regulation, AIFMs are required to ensure that all marketing communications addressed to investors, including professional investors, are identifiable as such and describe the risks and rewards of purchasing units or shares of an AIF in an equally prominent manner, and that all information is fair, clear and not misleading.

To supplement the above, on 27 May 2021, ESMA published its Guidelines under the Cross-Border Distribution of Fund Regulation, specifying the requirements that funds’ marketing communications must meet. It is to note that such Guidelines will become applicable 6 months after the date of the publication of the translations.

AIFMs shall note that the SLC 3.14 Part BIII has been introduced to include a reference to the new marketing requirements emanating from the CBDF Regulation and the Guidelines on Marketing Communications.

Furthermore, AIFMs managing Retail AIFs should also refer to Section 10 of Part BIII of the Investment Services Rules for Investment Services Providers which sets out further rules relating to disclosure requirements for marketing communications and information provided to retail clients. In addition to minimum disclosure requirements and information to be provided, such rules also set out, inter alia, other requirements relating to record keeping for marketing communications as well as conditions to be satisfied when providing information to retail investors relating to past or future performance.

 

Disclaimer: The MFSA has taken reasonable care to ensure that the information on the national provisions governing marketing requirements of UCITS and AIFs in Malta included on this webpage is up-to-date and complete. The MFSA is not responsible for maintaining external websites and shall not be liable for any error or omission on any external website to which hyperlinks are provided on this webpage.

Regulatory Fees and Charges

Last updated on: 17 September 2021

 

In application of Article 2(1) of the Commission Implementing Regulation (EU) 2021/955, this page contains the information on the fees and charges levied by the MFSA for carrying out its duties in relation to the cross-border activities of AIFMs, EuSEF managers, EuVECA managers and UCITS management companies referred to in Article 10(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings.

 

Fees and Charges

 

The fees levied with respect to cross-border activities emanate from the Investment Services Act (Fees) Regulations. The MFSA charges an initial notification/application fee and an ongoing annual supervisory fee as further detailed below.

European UCITS Management Companies and AIFMs establishing a branch as well as European UCITS and European AIFs marketing their units in Malta shall, annually, upon the anniversary of the date on which they commence business or market their units in Malta, pay the supervisory fee established in the table below, with the first annual fee becoming payable immediately once a licence/authorisation is granted.

 

Cross-Border Management Fees and Charges

 

  Initial Notification Fee Ongoing Annual Supervisory Fee
European UCITS management companies establishing a branch in Malta €1,250

 

€4,000

 

European AIFMs establishing a branch in Malta €1,250

 

€4000

 

Cross-Border Marketing Fees and Charges

 

  Initial Notification Fee Ongoing Annual Supervisory Fee
UCITS & AIF Passporting IN
European UCITS Scheme marketing their units in Malta €2,500

 

€3,000

 

UCITS Sub-Funds (Fees applicable per sub-fund up to 15 sub-funds) €450

 

€500
UCITS Sub-Funds (Fees applicable per sub-fund for the 16th sub-fund and over) €450 N/A
European AIF Scheme marketing their units in Malta €2,500

 

€3,000

 

AIF Sub-Funds (Fees applicable per sub-fund up to 15 sub-funds) €450

 

€500
AIF Sub-Funds (Fees applicable per sub-fund for the 16th sub-fund and over) €450 N/A

Custodians / Depositaries

In this section you will find the Acts of Parliament which lay down the framework of the regulatory regime applicable to investment firms. These provide for the regulatory structure for the supervision of these entities and include, amongst others, the powers of the Authority to grant, refuse, cancel and suspend licences issued to investment firms and to impose sanctions on these entities in specific circumstances. These would also contain enabling clauses allowing the Minister responsible for the regulation of financial services to issue subsidiary legislation as well as the MFSA, as competent authority, to issue Rules to further supplement the provisions in the main Act.

Subsidiary Legislation

S.L. 370.02 – Investment Services Act (Exemption) Regulations

S.L. 370.03 – Investment Services Act (Fees) Regulations

L.N. 20 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022

L.N. 62 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022 (L.N. 20 of 2022) – Commencement Notice

S.L. 370.04 – Investment Services Act (Prospectus of Collective Investment Schemes) Regulations

S.L. 370.05 – Investment Services Act (Control of Assets) Regulations

S.L. 370.06 – Investment Services Act (Recognition of Private Collective Investment Schemes) Regulations

S.L. 370.08 – Investment Services Act (Investment Advertisements and Prospectus Exemption) Regulations

S.L. 370.09 – Investor Compensation Scheme Regulations

S.L. 370.10 – European Passport Rights for Investment Firms Regulations

S.L. 370.12 – Investment Services Act (Performance Fees) Regulations

S.L. 370.13 – European Passport Rights for Persons Operating Multilateral Trading Facilities Regulations

S.L. 370.14 – Investments Services Act (Tied Agents) Regulations

S.L. 370.15 – Investment Services Act (Supervisory Review) Regulations

L.N. 30 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022

L.N. 57 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022 (L.N. 30 of 2022) – Commencement Notice

S.L. 370.16 – Investment Services Act (Contractual Funds) Regulations

S.L. 370.18 – Investment Services Act (Marketing of UCITS) Regulations

L.N. 130 of 2022 – Investment Services Act (Marketing of UCITS) (Amendment) Regulations, 2022

S.L. 370.19 – Investment Services Act (UCITS Mergers) Regulations

S.L. 370.20 – Investment Services Act (UCITS Management Company Passport) Regulations

S.L. 370.21 – Investment Services Act (Marketing of Alternative Investment Funds) Regulations

L.N. 129 of 2022 – Investment Services Act (Marketing of Alternative Investment Funds) (Amendment) Regulations, 2022

S.L. 370.22 – Investment Services Act (Alternative Investment Fund Manager) (Passport) Regulations

S.L. 370.23 – Investment Services Act (Alternative Investment Fund Managers) Regulations

S.L. 370.24 – Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations

S.L. 370.25 – CRD (Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 31 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

L.N. 55 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022 (L.N. 31 of 2022) – Commencement Notice

S.L. 370.26 – Investment Services Act (European Venture Capital Funds) Regulations

S.L. 370.27 – Investment Services Act (European Social Entrepreneurship Funds) Regulations

S.L. 370.28 – Investment Services Act (Access to Emissions Allowance Auction) Regulations

S.L. 370.29 – Over-Reliance on Credit Rating Regulations

S.L. 370.30 – Investment Firms (Reorganisation and Winding-up) Regulations

S.L. 370.31 – Investment Services Act (European Long-Term Investment Funds) Regulations

S.L. 370.32 – Investment Services Act (Custodians of Collective Investment Schemes) Regulations

S.L. 370.33 – Investment Services Act (UCITS Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.34 – Investment Services Act (List of Notified AIFs) Regulations

S.L. 370.35 – Local Central Counterparties Access Regulations

S.L. 370.36 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting Regulations

L.N. 89 of 2022 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting (Amendment) Regulations, 2022

S.L. 370.37 – Data Reporting Services Regulations

L.N. 136 of 2022 – Data Reporting Services (Amendment) Regulations, 2022

User Guidelines – L.N. 136 of 2022

S.L. 370.38 – Algorithmic Trading Regulations

S.L. 370.39 – Multilateral Trading Facilities and Organised Trading Facilities Regulations

S.L. 370.40 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.41 – Markets in Financial Instruments Regulations

S.L. 370.42 – Investment Services Act (Tied Agents) Regulations

S.L. 370.43 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) Regulations

L.N. 21 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third Country Firms) (Amendment) Regulations, 2022

L.N. 58 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) (Amendment) Regulations, 2022 (L.N. 21 of 2022) – Commencement Notice

S.L. 370.44 – Investment Services Act (Money Market Funds) Regulations

S.L. 371.15 – Supervisory Consolidation Regulations

L.N. 495 of 2021 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021

L.N. 37 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021 (L.N. 495 of 2021) (S.L. 370.46) – Commencement Notice

L.N. 29 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022

L.N. 56 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022 (L.N. 29 of 2022) – Commencement Notice

L.N. 24 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022

L.N. 61 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022 (L.N. 24 of 2022) (S.L. 370.49) – Commencement Notice

S.L. 371.19 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 135 of 2022 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

User Guidelines – L.N. 135 of 2022

L.N. 22 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022

L.N. 59 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022 (L.N. 22 of 2022) (S.L. 370.47) – Commencement Notice

L.N. 23 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022

L.N. 60 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022 (L.N. 23 of 2022) (S.L. 370.48) – Commencement Notice

L.N. 131 of 2022 – Investment Services Act (Cross-Border Distribution of Funds) Regulations, 2022

Funds

Subsidiary Legislation

S.L. 370.02 – Investment Services Act (Exemption) Regulations

S.L. 370.03 – Investment Services Act (Fees) Regulations

L.N. 20 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022

L.N. 62 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022 (L.N. 20 of 2022) – Commencement Notice

S.L. 370.04 – Investment Services Act (Prospectus of Collective Investment Schemes) Regulations

S.L. 370.05 – Investment Services Act (Control of Assets) Regulations

S.L. 370.06 – Investment Services Act (Recognition of Private Collective Investment Schemes) Regulations

S.L. 370.08 – Investment Services Act (Investment Advertisements and Prospectus Exemption) Regulations

S.L. 370.09 – Investor Compensation Scheme Regulations

S.L. 370.10 – European Passport Rights for Investment Firms Regulations

S.L. 370.12 – Investment Services Act (Performance Fees) Regulations

S.L. 370.13 – European Passport Rights for Persons Operating Multilateral Trading Facilities Regulations

S.L. 370.14 – Investments Services Act (Tied Agents) Regulations

S.L. 370.15 – Investment Services Act (Supervisory Review) Regulations

L.N. 30 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022

L.N. 57 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022 (L.N. 30 of 2022) – Commencement Notice

S.L. 370.16 – Investment Services Act (Contractual Funds) Regulations

S.L. 370.18 – Investment Services Act (Marketing of UCITS) Regulations

L.N. 130 of 2022 – Investment Services Act (Marketing of UCITS) (Amendment) Regulations, 2022

S.L. 370.19 – Investment Services Act (UCITS Mergers) Regulations

S.L. 370.20 – Investment Services Act (UCITS Management Company Passport) Regulations

S.L. 370.21 – Investment Services Act (Marketing of Alternative Investment Funds) Regulations

L.N. 129 of 2022 – Investment Services Act (Marketing of Alternative Investment Funds) (Amendment) Regulations, 2022

S.L. 370.22 – Investment Services Act (Alternative Investment Fund Manager) (Passport) Regulations

S.L. 370.23 – Investment Services Act (Alternative Investment Fund Managers) Regulations

S.L. 370.24 – Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations

S.L. 370.25 – CRD (Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 31 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

L.N. 55 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022 (L.N. 31 of 2022) – Commencement Notice

S.L. 370.26 – Investment Services Act (European Venture Capital Funds) Regulations

S.L. 370.27 – Investment Services Act (European Social Entrepreneurship Funds) Regulations

S.L. 370.28 – Investment Services Act (Access to Emissions Allowance Auction) Regulations

S.L. 370.29 – Over-Reliance on Credit Rating Regulations

S.L. 370.30 – Investment Firms (Reorganisation and Winding-up) Regulations

S.L. 370.31 – Investment Services Act (European Long-Term Investment Funds) Regulations

S.L. 370.32 – Investment Services Act (Custodians of Collective Investment Schemes) Regulations

S.L. 370.33 – Investment Services Act (UCITS Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.34 – Investment Services Act (List of Notified AIFs) Regulations

S.L. 370.35 – Local Central Counterparties Access Regulations

S.L. 370.36 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting Regulations

L.N. 89 of 2022 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting (Amendment) Regulations, 2022

S.L. 370.37 – Data Reporting Services Regulations

L.N. 136 of 2022 – Data Reporting Services (Amendment) Regulations, 2022

User Guidelines – L.N. 136 of 2022

S.L. 370.38 – Algorithmic Trading Regulations

S.L. 370.39 – Multilateral Trading Facilities and Organised Trading Facilities Regulations

S.L. 370.40 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.41 – Markets in Financial Instruments Regulations

S.L. 370.42 – Investment Services Act (Tied Agents) Regulations

S.L. 370.43 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) Regulations

L.N. 21 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third Country Firms) (Amendment) Regulations, 2022

L.N. 58 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) (Amendment) Regulations, 2022 (L.N. 21 of 2022) – Commencement Notice

S.L. 370.44 – Investment Services Act (Money Market Funds) Regulations

S.L. 371.15 – Supervisory Consolidation Regulations

L.N. 495 of 2021 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021

L.N. 37 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021 (L.N. 495 of 2021) (S.L. 370.46) – Commencement Notice

L.N. 29 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022

L.N. 56 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022 (L.N. 29 of 2022) – Commencement Notice

L.N. 24 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022

L.N. 61 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022 (L.N. 24 of 2022) (S.L. 370.49) – Commencement Notice

S.L. 371.19 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 135 of 2022 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

User Guidelines – L.N. 135 of 2022

L.N. 22 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022

L.N. 59 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022 (L.N. 22 of 2022) (S.L. 370.47) – Commencement Notice

L.N. 23 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022

L.N. 60 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022 (L.N. 23 of 2022) (S.L. 370.48) – Commencement Notice

L.N. 131 of 2022 – Investment Services Act (Cross-Border Distribution of Funds) Regulations, 2022

National Provisions governing marketing requirements for AIFs and UCITS

Last updated on: 17 September 2021

 

In application of Article 1 of the Commission Implementing Regulation (EU) 2021/955, this page contains the information on the national laws, regulations and administrative provisions governing marketing requirements referred to in Article 5(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings.

 

Marketing Requirements for UCITS

 

a) The Format and Content of Marketing Material

 

The format and content of marketing material by UCITS is prescribed in Chapter 1 of the  Conduct of Business Rulebook.  Furthermore, a reference has been included in Rule R.1.2.81 to include the new marketing requirements emanating from Article 4 of the CBDF Regulation and the ESMA Guidelines on Marketing Communications.

 

b) Verification of Marketing Communications by the Authority

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities.  In this regard, it is pertinent to note that it is the responsibility of the UCITS Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the UCITS Management Company if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Passporting Rules

 

Passporting In

European UCITS wishing to market their units in Malta are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein.

 

Passporting Out

Maltese UCITS wishing to market their units in a Member State or EEA State are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein.

 

d) De-notification of arrangements made for marketing

 

Where the UCITS Manager no longer wishes to market its UCITS in another Member State, the UCITS Manager is to submit a notification to the MFSA in terms of Article 4(16) of the Investment Services Act (Marketing of UCITS) Regulations.

The notification is to be submitted to the MFSA on [email protected]

 

Marketing Requirements for AIFs

 

a) The Format and Content of Marketing Material

 

AIFMs shall ensure that all marketing communications addressed to investors are identifiable as such and describe the risks and rewards of purchasing units or shares of an AIF.  All marketing material must be fair, clear and not misleading.

AIFMs shall also note that SLC 3.14 has been introduced in Part BIII of the Investment Services Rules for AIFMs to include the new marketing requirements emanating from Article 4 of the CBDF Regulation and the ESMA Guidelines on Marketing Communications. AIFMs are to note that new requirements are applicable for all AIFs, regardless of the type of target investor.

 

b) Verification of Marketing Communications by the Authority

 

The Authority shall carry out an ex-post review of marketing communications issued by regulated entities.  To note that it is the responsibility of the AIFM Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the AIFM if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Marketing to Retail and Professional Investors

 

AIFMs are to refer to the provisions listed below depending on the target investors of the AIFs managed, as well as the marketing communication addressed to them.

 

Retail Investors:

 

Professional Investors:

 

d) Passporting Rules

 

Passporting In

European AIFs managed by Maltese or European AIFMs wishing to market their units in Malta are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein, as applicable.

 

 

Passporting Out

Maltese AIFs wishing to market their units in a Member State or EEA State are to consider the provisions listed hereunder and submit a notification in the form and manner prescribed therein, as applicable.

 

e) Distribution of Funds Established in a Non-EU Member State under the National Private Placement Regime

 

EU AIFMs or Non-EU AIFMs wishing to market the units of Non-EU AIFs in Malta are to refer to the notification forms and guidance document listed below, as applicable.

 

f) De-Notification of Arrangements made for Marketing

Where the AIFM no longer wishes to market its AIF/s in another Member State, the AIFM is to submit a notification to the MFSA in terms of Article 3(13) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulations

The notification is to be submitted to the MFSA on [email protected]

 

g) Pre-marketing in the EU by Maltese AIFMs

 

Maltese AIFMs wishing to carry out pre-marketing must submit a notification by email within two weeks of having begun pre-marketing to [email protected] in accordance with Article 3 (20) and Article 4 (25) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulation. 

 

Disclaimer: The MFSA has taken reasonable care to ensure that the information on the national provisions governing marketing requirements of UCITS and AIFs in Malta included on this webpage is up-to-date and complete. The MFSA is not responsible for maintaining external websites and shall not be liable for any error or omission on any external website to which hyperlinks are provided on this webpage.

Summaries of National Provisions governing marketing requirements for AIFs and UCITS

Last updated on: 17 September 2021

 

Marketing Requirements for UCITS

 

a) Notification for the Marketing of Units

 

A European UCITS Scheme may market its units in Malta provided that prior to the commencement of such marketing, the MFSA has received a notification letter in the form and manner prescribed in Article 8 of the Investment Services Act (Marketing of UCITS) Regulations. Particularly, such a notification is to be received by the MFSA from the Authority of the UCITS home Member State or EEA State and is to include the information outlined in Article 8 1(a)-(d) and Article 8 2(a)-(d) of the Regulation.

A Maltese UCITS Scheme intending to market its units in a Member State or EEA State other than Malta must submit a notification letter in the form set out in Schedule C of the Investment Services Rules for Retail Collective Investments Schemes to the MFSA.

 

b) Notification and Prior Approval of Marketing Communications

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities and as such, marketing communications are not subject to prior notification and approval. In this regard, it is pertinent to note that it is the responsibility of the UCITS Management Company to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the UCITS Management Company if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

Marketing Requirements for AIFs

 

a) Notification for the Marketing of Units

 

A European AIF may market its units in Malta provided that prior to the commencement of marketing, the MFSA has received a notification letter in the form and manner prescribed in Article 3 or Article 5 (as applicable) of the Investment Services Act (Marketing of Alternative Investment Funds) Regulations.

A Maltese AIF intending to market its units in a Member State or EEA State other than Malta must submit a notification letter in the form set out in Schedule 4 of the Investment Services Rules Alternative Investment Funds to the MFSA.

 

b) Notification and Prior Approval of Marketing Communications

 

The Authority carries out an ex-post review of marketing communications issued by regulated entities and as such, marketing communications are not subject to prior notification and approval. In this regard, it is pertinent to note that it is the responsibility of the AIFM to review and ensure that the marketing material is in line with the applicable requirements before such material is issued and/or posted on social media platforms.

The Authority will contact the AIFM if such marketing material is deemed as being non-compliant with the applicable requirements and may also indicate the remedial action to be taken.

 

c) Marketing to Retail Investors and Professional Investors

 

As from 2 August 2021, in terms of Article 4 of the Cross-Border Distribution of Funds Regulation, AIFMs are required to ensure that all marketing communications addressed to investors, including professional investors, are identifiable as such and describe the risks and rewards of purchasing units or shares of an AIF in an equally prominent manner, and that all information is fair, clear and not misleading.

To supplement the above, on 27 May 2021, ESMA published its Guidelines under the Cross-Border Distribution of Fund Regulation, specifying the requirements that funds’ marketing communications must meet. It is to note that such Guidelines will become applicable 6 months after the date of the publication of the translations.

AIFMs shall note that the SLC 3.14 Part BIII has been introduced to include a reference to the new marketing requirements emanating from the CBDF Regulation and the Guidelines on Marketing Communications.

Furthermore, AIFMs managing Retail AIFs should also refer to Section 10 of Part BIII of the Investment Services Rules for Investment Services Providers which sets out further rules relating to disclosure requirements for marketing communications and information provided to retail clients. In addition to minimum disclosure requirements and information to be provided, such rules also set out, inter alia, other requirements relating to record keeping for marketing communications as well as conditions to be satisfied when providing information to retail investors relating to past or future performance.

 

Disclaimer: The MFSA has taken reasonable care to ensure that the information on the national provisions governing marketing requirements of UCITS and AIFs in Malta included on this webpage is up-to-date and complete. The MFSA is not responsible for maintaining external websites and shall not be liable for any error or omission on any external website to which hyperlinks are provided on this webpage.

Regulatory Fees and Charges

Last updated on: 17 September 2021

 

In application of Article 2(1) of the Commission Implementing Regulation (EU) 2021/955, this page contains the information on the fees and charges levied by the MFSA for carrying out its duties in relation to the cross-border activities of AIFMs, EuSEF managers, EuVECA managers and UCITS management companies referred to in Article 10(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings.

 

Fees and Charges

 

The fees levied with respect to cross-border activities emanate from the Investment Services Act (Fees) Regulations. The MFSA charges an initial notification/application fee and an ongoing annual supervisory fee as further detailed below.

European UCITS Management Companies and AIFMs establishing a branch as well as European UCITS and European AIFs marketing their units in Malta shall, annually, upon the anniversary of the date on which they commence business or market their units in Malta, pay the supervisory fee established in the table below, with the first annual fee becoming payable immediately once a licence/authorisation is granted.

 

Cross-Border Management Fees and Charges

 

  Initial Notification Fee Ongoing Annual Supervisory Fee
European UCITS management companies establishing a branch in Malta €1,250

 

€4,000

 

European AIFMs establishing a branch in Malta €1,250

 

€4000

 

Cross-Border Marketing Fees and Charges

 

  Initial Notification Fee Ongoing Annual Supervisory Fee
UCITS & AIF Passporting IN
European UCITS Scheme marketing their units in Malta €2,500

 

€3,000

 

UCITS Sub-Funds (Fees applicable per sub-fund up to 15 sub-funds) €450

 

€500
UCITS Sub-Funds (Fees applicable per sub-fund for the 16th sub-fund and over) €450 N/A
European AIF Scheme marketing their units in Malta €2,500

 

€3,000

 

AIF Sub-Funds (Fees applicable per sub-fund up to 15 sub-funds) €450

 

€500
AIF Sub-Funds (Fees applicable per sub-fund for the 16th sub-fund and over) €450 N/A

Recognised Persons

Subsidiary Legislation

S.L. 370.02 – Investment Services Act (Exemption) Regulations

S.L. 370.03 – Investment Services Act (Fees) Regulations

L.N. 20 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022

L.N. 62 of 2022 – Investment Services Act (Fees) (Amendment) Regulations, 2022 (L.N. 20 of 2022) – Commencement Notice

S.L. 370.04 – Investment Services Act (Prospectus of Collective Investment Schemes) Regulations

S.L. 370.05 – Investment Services Act (Control of Assets) Regulations

S.L. 370.06 – Investment Services Act (Recognition of Private Collective Investment Schemes) Regulations

S.L. 370.08 – Investment Services Act (Investment Advertisements and Prospectus Exemption) Regulations

S.L. 370.09 – Investor Compensation Scheme Regulations

S.L. 370.10 – European Passport Rights for Investment Firms Regulations

S.L. 370.12 – Investment Services Act (Performance Fees) Regulations

S.L. 370.13 – European Passport Rights for Persons Operating Multilateral Trading Facilities Regulations

S.L. 370.14 – Investments Services Act (Tied Agents) Regulations

S.L. 370.15 – Investment Services Act (Supervisory Review) Regulations

L.N. 30 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022

L.N. 57 of 2022 – Investment Services Act (Supervisory Review) (Amendment) Regulations, 2022 (L.N. 30 of 2022) – Commencement Notice

S.L. 370.16 – Investment Services Act (Contractual Funds) Regulations

S.L. 370.18 – Investment Services Act (Marketing of UCITS) Regulations

L.N. 130 of 2022 – Investment Services Act (Marketing of UCITS) (Amendment) Regulations, 2022

S.L. 370.19 – Investment Services Act (UCITS Mergers) Regulations

S.L. 370.20 – Investment Services Act (UCITS Management Company Passport) Regulations

S.L. 370.21 – Investment Services Act (Marketing of Alternative Investment Funds) Regulations

L.N. 129 of 2022 – Investment Services Act (Marketing of Alternative Investment Funds) (Amendment) Regulations, 2022

S.L. 370.22 – Investment Services Act (Alternative Investment Fund Manager) (Passport) Regulations

S.L. 370.23 – Investment Services Act (Alternative Investment Fund Managers) Regulations

S.L. 370.24 – Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations

S.L. 370.25 – CRD (Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 31 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

L.N. 55 of 2022 – CRD (Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022 (L.N. 31 of 2022) – Commencement Notice

S.L. 370.26 – Investment Services Act (European Venture Capital Funds) Regulations

S.L. 370.27 – Investment Services Act (European Social Entrepreneurship Funds) Regulations

S.L. 370.28 – Investment Services Act (Access to Emissions Allowance Auction) Regulations

S.L. 370.29 – Over-Reliance on Credit Rating Regulations

S.L. 370.30 – Investment Firms (Reorganisation and Winding-up) Regulations

S.L. 370.31 – Investment Services Act (European Long-Term Investment Funds) Regulations

S.L. 370.32 – Investment Services Act (Custodians of Collective Investment Schemes) Regulations

S.L. 370.33 – Investment Services Act (UCITS Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.34 – Investment Services Act (List of Notified AIFs) Regulations

S.L. 370.35 – Local Central Counterparties Access Regulations

S.L. 370.36 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting Regulations

L.N. 89 of 2022 – Position Limits and Position Management Controls in Commodity Derivatives and Reporting (Amendment) Regulations, 2022

S.L. 370.37 – Data Reporting Services Regulations

L.N. 136 of 2022 – Data Reporting Services (Amendment) Regulations, 2022

User Guidelines – L.N. 136 of 2022

S.L. 370.38 – Algorithmic Trading Regulations

S.L. 370.39 – Multilateral Trading Facilities and Organised Trading Facilities Regulations

S.L. 370.40 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

S.L. 370.41 – Markets in Financial Instruments Regulations

S.L. 370.42 – Investment Services Act (Tied Agents) Regulations

S.L. 370.43 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) Regulations

L.N. 21 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third Country Firms) (Amendment) Regulations, 2022

L.N. 58 of 2022 – Investment Services Act (Provision of Investment Services and Activities by Third-Country Firms) (Amendment) Regulations, 2022 (L.N. 21 of 2022) – Commencement Notice

S.L. 370.44 – Investment Services Act (Money Market Funds) Regulations

S.L. 371.15 – Supervisory Consolidation Regulations

L.N. 495 of 2021 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021

L.N. 37 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) Regulations, 2021 (L.N. 495 of 2021) (S.L. 370.46) – Commencement Notice

L.N. 29 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022

L.N. 56 of 2022 – Investment Services Act (Supervisory Consolidation) (Capital Requirements Directive) (Amendment) Regulations, 2022 (L.N. 29 of 2022) – Commencement Notice

L.N. 24 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022

L.N. 61 of 2022 – Supervisory Consolidation (Investment Firms Directive) Regulations, 2022 (L.N. 24 of 2022) (S.L. 370.49) – Commencement Notice

S.L. 371.19 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) Regulations

L.N. 135 of 2022 – Investment Services Act and Banking Act (MiFID and MiFIR Administrative Penalties, Measures and Investigatory Powers) (Amendment) Regulations, 2022

User Guidelines – L.N. 135 of 2022

L.N. 22 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022

L.N. 59 of 2022 – Investment Services Act (Supervisory Review Investment Firms Directive) Regulations, 2022 (L.N. 22 of 2022) (S.L. 370.47) – Commencement Notice

L.N. 23 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022

L.N. 60 of 2022 – Investment Firms Directive (Administrative Penalties, Measures And Investigatory Powers) Regulations, 2022 (L.N. 23 of 2022) (S.L. 370.48) – Commencement Notice

L.N. 131 of 2022 – Investment Services Act (Cross-Border Distribution of Funds) Regulations, 2022