On the 17th May, the Malta Financial services (MFSA) issued a document containing a number of frequently asked questions on the implications of a hard Brexit on the local asset management industry.
Amongst other matters, MFSA has assured that Professional Investor Funds (PIFs) being managed by UK firms will not be impacted, insofar as the manager will continue to satisfy the requirements of sufficient good standing and positive repute. On the other hand, until Article 37 of the AIFMD comes into force in Malta, Maltese based Alternative Investment Funds (AIFs) and UCITS funds which are managed by UK management companies would be required to appoint an EU manager or convert into a PIF or a self-managed AIF. Furthermore, all collective investment schemes having UK service providers are expected to revise their offering documentation as well as service agreements with UK entities (where applicable) in order to reflect the changes resulting from Brexit.
Other matters covered by the FAQ document include the implications on the marketing of UK and Maltese funds in Malta and the UK respectively, as well as implications on UK-based brokerage firms providing their services to Maltese funds and/or managers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
