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we share our insights on when the investment discretion shifts from humans to AI by analysing whether a legal definition of artificial intelligence has been determined.
Investment Services & Funds

AI & Funds #1 – investment discretion

When one instructs a painter to draw a portrait (no matter how detailed the instructions may be) the painter will always have discretion in executing the final product. Likewise, in investment funds, the investment manager is instructed to invest according to various rules and timeframes which are detailed in the investment strategy as approved by the competent financial regulator, but there will still remain investment discretion on how the investment strategy is executed. This discretion is normally based on a number of statistically orientated formulas which analyses quantitative and qualitative data. Artificial Intelligence (“AI”) is being increasingly used in these…
Mario Mizzi
8th February 2023
MFSA Issues Circular on Proposed Changes to the Companies Act (Cell Companies Carrying on Business of Insurance) Regulations
Insurance & ReinsuranceLegal Update

The MFSA has proposed amendments to the Insurance Distribution Rules

The MFSA commenced a consultation process on its proposed amendments to the Insurance Distribution Rules (hereinafter referred to as the “IDR”). The consultation process began on the 26th of January 2023 and closes on the 8th of March 2023. The following amendments are being proposed: Chapter 1 in relation to Professional Indemnity requirements; Chapter 2, together with a proposed new draft Annex to Chapter 2 and draft Schedules 4 – 8 of Chapter 2 in relation to: (i) the pre-requisite qualifications when submitting an application for registration of individuals in the Agents Register, Managers Register or Brokers Register, (ii) the…
Mamo TCV Advocates
8th February 2023
The MFSA released a circular and updated the FAQs relating to TUBOR
Corporate and M&A

The MFSA announced updates to the Trusts Ultimate Beneficial Ownership Register

The Malta Financial Services Authority (the “MFSA”) released a Circular on the 25th of January 2023 announcing important updates to the Trusts Ultimate Beneficial Ownership Register (“TUBOR”). With effect from the same date, the MFSA has also amended the FAQs relating to TUBOR. The MFSA reminded the industry that in the TUBOR Declaration, the trustee is required to indicate if the beneficiary of the trust (whether a corporate or individual beneficiary) has received a benefit or otherwise from the trust. To this end, a new field has been added in the TUBOR Declaration which requires the trustee to make this…
Joshua Chircop
7th February 2023
In this series of weekly briefings, insights will be shared on the impact that artificial intelligence is making on the asset management industry and investment services in general.
Investment Services & Funds

AI & Funds – insight briefings

The impact that Artificial Intelligence (“AI”) is making on investment services has been the subject of a recent publication, dated 1st February 2023, which was issued by the European Securities and Markets Authority (“ESMA”). The publication, entitled “Artificial intelligence in EU securities markets”, provides data on the methods that stakeholders are implementing to incorporate powerful digital tools in their regulated financial products. ESMA’s publication makes reference to the inherent notion that AI is an “umbrella” term which incorporates machine-learning as well as other forms of Big Data solutions. In fact, ESMA notes that in the funds industry certain managers use…
Mario Mizzi
3rd February 2023
Group Insurance policies - recent ECJ Judgment provides for review of the definition of ‘Insurance Intermediary’ in the context of the IDD and IMD.
Insurance & Reinsurance

Group Insurance policies – ECJ Decision Revises the Definitions of ‘Insurance Intermediary’ and ‘Insurance Mediation’

In Case C-633/20 of the European Court of Justice (the ‘Court’) delivered on the 29th September 2022, the First Chamber of the Court produced a judgment (the ‘Judgment’) in response to a reference for a preliminary ruling concerning the definition of ‘insurance intermediary’ in the context of Directive 2016/97 (the ‘Insurance Distribution Directive’ or the ‘IDD’) and Directive 2002/92 (the ‘Insurance Mediation Directive’ or the ‘IMD’) and in the circumstances of the referring court’s main proceedings. The request was made in the proceedings between the Bundesverband der Verbraucherzentralen und Verbraucherverbände – Verbraucherzentrale Bundesverband eV (Federal Union of Consumer Organisations and…
Unlock Funding Opportunities for Your SME: EU Renews IP Grant
Intellectual Property & Anti-CounterfeitingNews

Unlock Funding Opportunities for Your SME: EU Renews IP Grant

Following the successful uptake of a similar initiative in 2022, the European Commission has re-launched its fund to support small and medium enterprises (“SMEs”) in safeguarding their intellectual property assets. The scheme, which will run from 23 January 2023 until 8 December 2023, will enable SMEs established in the European Union to recover up to 75% of eligible fees incurred in connection with trademark and design applications, at both EU and national level, up to a maximum of €1,000. This is welcome news, since it is estimated that over 99% of all businesses in the EU are SMEs and is…
Mamo TCV Advocates
31st January 2023