MFSA Launches the Notified Alternative Investment Funds Framework

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The Malta Financial Services Authority (‘MFSA’) has announced the launch of a new framework applicable for notification of Alternative Investment Funds (‘the Notified AIFs’) that will be promoted to qualifying or professional investors.

Any structure allowed under Maltese law can be established as a Notified AIF, which will not be authorized or in any way approved by the MFSA.

The Alternative Investment Fund Manager (‘AIFM’) will be fully responsible for the Notified AIF and the fulfillment of its obligations. The Notified AIF must be managed by a full-scope AIFM. The MFSA will maintain an updated list of Notified AIFs in good standing on its website.

AIFMs in the EU and EEA may submit a notification to the MFSA for an AIF to be included on the list of Notified AIFs. Third Country AIFMs may submit a request for notification of an AIF once the country of their establishment is granted passporting rights in terms of the Alternative Investment Fund Managers Directive (‘AIFMD’). The notification process is available to Collective Investment Schemes that are not in possession of a licence issued by the MFSA in terms of the Investment Services Act.

Once all the documents required for the notification process are filed, the MFSA will include the AIF in the list of Notified AIFs within 10 business days. In addition to benefiting from the fast entry onto the market, Maltese Notified AIFs will benefit from passporting to other Member States.

Joe Bannister, the MFSA Chairman, stated: “The framework builds on the innovation of past legislation and will be followed by other launches over the coming months.”

The Notified AIF framework has been compared to the recently launched Reserved Alternative Investment Fund framework in Luxembourg, which analysts have described as “pioneering and revolutionary.”

In the meantime you may kindly contact Dr. Jonathan De Giovanni, Partner for Legal and International Tax, for more information about the Notified AIF framework.