IMPORTANT FINANCIAL SERVICES UPDATES IN MALTA

1. Malta Financial Services Authority (“MFSA”) Circulars on the transposition of UCITS IV 

 

The MFSA has been keen in addressing the financial services industry on the recast EU Directive on Undertakings for Collective Investment in Transferable Securities (“UCITS IV Directive”). Since October 2009 the MFSA has issued three circulars giving an overview of the principal elements of the UCITS IV Directive and an outline on the manner in which the MFSA intends transposing the UCITS IV Directive into Maltese Law. 

 

In this way the MFSA aims to ensure a timely implementation of the UCITS IV Directive, which is to be transposed into national law by the 30th June 2011. 

 

 

2. Malta Recognized as a QROPS Jurisdiction 

 

The UK’s HM Revenue & Customs (“HMRC”) has confirmed that retirement schemes established in Malta and regulated by the MFSA may be considered on a case by case basis to be eligible for the status of Qualifying Recognised Overseas Pension Schemes (QROPS). For a further reading on the subject please click HERE to access our Newsletter. 

 

 

3. MFSA Guidance Note for Shariah Compliant Funds  

 

Following the issue of a consultation document on Shariah Compliant Funds in October 2008, the MFSA has in March of this year issued a guidance note to set out the issues which the MFSA expects Shariah compliant funds established in Malta to address as part of their licence conditions. For a further reading on the subject please click HERE to access our Newsletter. 

 

 

4. Introducing the Incorporated Cell Company in Insurance  

 

A consultation process has been launched in relation to the proposed Companies Act (Incorporated Cell Companies Carrying on Business of Insurance) Regulations, 2010, which will cater for a new type of vehicle in Malta: the Incorporated Cell Company (“ICC”). The consultation period on the draft regulations will end on Friday 30th April 2010. For a further reading on the subject please click HERE to access our Newsletter. 

 

 

5. Consultation on Amendments to Listing Rules 

 

The MFSA has embarked on a revision of the Listing Rules and has issued a consultation document which highlights the proposed principal amendments to the Listing Rules aimed at simplifying and updating these Rules so that these can be understood and applied more easily by operators in the Maltese capital market. The consultation period on the proposed amendments has been extended until Friday 30th April 2010. 

 

 

6. MFSA Guidelines for the Re-domiciliation of Offshore Funds to Malta 

 

These Guidelines clarify and facilitate the procedure to be followed by funds planning to re-domicile to Malta. 

 

 

7. Malta Strengthens its Relations with China in Financial Services Regulation  

 

On the 26th January 2010, the MFSA signed a Memorandum of Understanding (“MOU”) with the China Banking Regulatory Commission. The MOU gives Chinese Qualified Domestic Institutional Investors (“QDII”) the power to invest on behalf of Chinese investors into Malta domiciled investment funds (Professional Investor Funds and UCITS funds) regulated by the MFSA. It will also give MFSA-licensed companies (including fund management companies, insurance companies, securities firms and commercial banks) the ability to acquire the Chinese Qualified Foreign Institutional Investor ("QFII") status and invest directly in China. 

 

 

8. Malta, Bahrain, sign Double Taxation Agreement 

 

On the 12th of April, 2010 Malta and Bahrain signed a double taxation avoidance agreement. The agreement is aimed at facilitating trade exchanges and investment between the two countries. Other new double taxation agreements are in the offing this year as negotiations begin on some while others are only awaiting signatures; double taxation agreements are lined up with Israel, Oman, Russia, Saudi Arabia and Hong Kong. 

 

For a full reading of our Financial Services Newsletter please click HERE (PDF Format 622KB).