Skip to main content
Investment Services & FundsLegal UpdateMario Mizzi

Legal Update on UCITS Information Documents

A key feature of Undertakings for the Collective Investment in Transferable Securities (“UCITS” fund) is the Key Investor Information Document (“KIID”), which provides the retail investor with simplified information from the prospectus. UCITS also qualify as Packaged Retail Investment and Insurance Products (“PRIIPS”). Since PRIIPs are required to do a Key Information Document (“KID”), promoters of a UCITS fund were technically obliged to provide both the KIID as well as the KID. Thus, these conflicting requirements would have created unclarity for the retail investor. Initially, an exemption was provided for investment companies and management companies who are promoting a UCITS…
Mario Mizzi
1st June 2022
Legal UpdateMario Mizzi

Delay in Applicability of Environmental, Social and Governance Technical Standards

The Sustainable Finance Disclosure Regulation ("SFDR"), which was passed in 2019 and became applicable in 2021, has introduced Environmental, Social and Governance ("ESG") reporting obligations for EU investment funds. These sustainability reporting obligations aim at reducing the marketing practice of greenwashing in the investment services industry. However, whilst the SFDR provided for the obligation to carry out ESG reporting, the Regulatory Technical Standards ("RTS"), which stipulate how the data relating to the financial product is to be presented to investors, was not yet harmonised across the EU. Such omission to provide a harmonised methodology resulted in investors being unable to…
Mario Mizzi
10th May 2022
Anthea SammutLegal Update

The Introduction of Appendix 2E – A Financial Return for Depositaries

On the 11th of April 2022, the Malta Financial Services Authority (the "MFSA") issued a circular entitled "The Introduction of Appendix 2E – A New Regulatory Return for Licence Holders Offering Depositary Services Solely to Collective Investment Schemes". Through this circular, the MFSA remarked that along with the requirement to submit the annual report and audited financial statements, a new regulatory return, being Appendix 2E, is being introduced for depositaries of Collective Investment Schemes that are not allowed to offer any MiFID services and licensed as a credit institution in terms of the Capital Requirements Directive. The depositaries who are…
Anthea Sammut​
19th April 2022
Jonathan Abela FiorentinoLegal Update

Bona fide disputes and defining a creditor for the purposes of liquidation proceedings

In a decision delivered on the 13th March 2022, case no. 246/2018 ISB, the Civil Court (Commercial Section) placed the defendant company into liquidation on the ground that it was unable to pay its debts, after considering and concluding that the circumstances that had previously led the Court in the same case to determine the existence of a bona fide dispute and consequently suspend the hearing of the liquidation proceedings, no longer existed. The circumstances referred to consisted of proceedings instituted by defendant company in The Netherlands against the company demanding its liquidation in Malta ('the applicant company') as well…
Legal UpdateNews

Professional Investor Funds – amended application

In a circular dated the 18th of March 2022, the Malta Financial Services Authority ("MFSA") issued a circular titled: Publication of a Revised Application Form for Professional Investor Funds ("PIFs").In its circular issued earlier in 2021, the MFSA outlined that the new application form is part of a wider update to consolidate the licensing processes of various Collective Investment Schemes authorised by the MFSA. Although PIFs do not have passporting rights, this type of fund remains the most efficient investment vehicle for hedge fund managers who are targeting professional investors with a higher risk tolerance through a more dynamic regulatory approach.The…
MamoTCV Advocates
28th March 2022
Capital MarketsLegal Update

MFSA Update: PMDR Notifications to be Filed Online

Persons discharging managerial responsibilities ('PMDRs'), or persons closely associated with them, are now required to submit PMDR notifications through the Malta Financial Services Authority's ('MFSA') online form. In terms of the Market Abuse Regulation (Regulation (EU) No 596/2014, hereinafter the 'Regulation'), PMDRs and persons closely associated with them are required to notify the issuer and the MFSA of every transaction conducted on their own account relating to the shares or debt instruments of that issuer once the total value of transactions executed in a calendar year exceeds €5,000. It is important to note that such notifications must be made by…
MamoTCV Advocates
13th January 2022