The MFSA has issued a circular addressed to all licence holders availing of the principle of passporting on the basis of freedom of services.
The Authority has noted that there are a number of licence holders that had obtained permission to provide services outside of Malta in terms of the AIFMD, MiFID and UCITS Directives, and that are not exercising these passporting rights. These entities have either never actively used such passport or have stopped using the passport altogether for an extended period of time.
The MFSA has warned that such licence holders may not be in line with these Directives depending on the level of cross-border activities undertaken since:
Licence holders that fail to take prompt actions in line with the above may be deemed to be in contravention of these Directives.
The MFSA is thus requesting all licence holders making use of freedom of services in terms of these Directives to:
Licence holders are required to conclude such review by the 26th of May 2021 and any divergences are to be reported to the MFSA by the 7th of June 2021.
Article written by Senior Associate Dr Cherise Abela Grech.
Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.