A media release dated 13th of February 2025 announced that the Malta Financial Services Authority (“MFSA”) is launching two key initiatives which will broaden the structuring options for non-retail Collective Investment Schemes (“CIS”). By virtue of these initiatives, flexibility and operational efficiency is being afforded for fund promoters whilst putting Malta in an attractive position for asset management and financial services. The initiatives are:
1. Special Limited Partnership Funds (“SLPF”)
This is being structured as a limited partnership without separate legal personality. Its introduction will (i) offer an alternative to the limited partnership framework currently provided under the Companies Act; (ii) be made available to authorised non-retail funds; and (iii) be a legal arrangement rather than a separate legal entity, which will be regulated by the Investment Services Act.
2. Extension of Notified Professional Investor Fund Framework to Self-Managed Funds
The Notified Professional Investment Fund (“NPIF”) framework is being extended as part of this initiative to include self-managed funds. Prior to this extension, the NPIF was limited to externally managed funds, and now allows fund promoters to establish self-managed NPIFs. This extension allows accessibility whilst benefitting from a more efficient onboarding process and regulatory standards associated thereto.
These initiatives underscore MFSA’s commitment to being competitive and modernising its regulatory framework whilst considering evolving market needs. The proposed structuring possibilities is an attractive venture to asset managers and international markets.
In conclusion, the introduction of the SLPF and the extension of the NPIF framework to self-managed funds represent significant strides toward fostering a competitive and innovative asset management environment in Malta. These initiatives not only offer enhanced flexibility and operational benefits to fund promoters but also bolster investor protection and governance. As these measures take effect, legal practitioners and industry stakeholders must adapt to the new regulatory landscape to ensure continued compliance and capitalize on emerging opportunities in the asset management sector.
For further information or assistance, please contact us at info@gtg.com.mt
Author: Neil Gauci