On the 26th May 2016, the MFSA issued a circular notifying the industry of its intention to clean up the fund framework in Malta. This clean up exercise has eliminated the use of non-UCITS retail funds and Overseas Based Non-UCITS retail funds as well as the experienced and extraordinary tranches of the Professional Investor Fund spectrum. 

In essence, the available funds now span as follows:

Retail Funds:
  • UCITS Funds
  • Retail Alternative Investor Funds

Non-Retail Funds
  • Alternative Investor Funds
  • Professional Investor Funds available to Qualifying Investors (the minimum investment amount of which has been raised to Euro100,000)
  • Notified Alternative Investor Funds. 

In addition, the MFSA also intend to update the definiton of qualifying investors - the main changes the definition being that a) the minimum investment must at all times be Euro100,000 and b) the investor having in writing, acknowledged and acccepted the risks associated with the investment. The remaining existing definition of qualifying investors has remaining largely unchanged

In order to view the full MFSA circular, please click here.