MFSA newsletter
MFSA annual report 2006 - Volume growth in every sector Malta's financial services industry had another very good year in 2006. According to the Malta Financial Services Authority's annual report, just published, the sector remained stable, volumes...
MFSA annual report 2006 - Volume growth in every sector
Malta's financial services industry had another very good year in 2006. According to the Malta Financial Services Authority's annual report, just published, the sector remained stable, volumes grew in every area and business with the EU and the rest of the world continued to expand.
The net asset value of locally-based collective investment schemes rose to nearly €5 billion as the number of licensed investment funds increased by 52 to 200 at the end of the year.
The report confirms Malta's increasing popularity as a domicile for hedge funds and European retail funds, known as UCITS. Fund administration activity increased strongly. Bank balance sheet totals grew by 43 per cent.
The insurance sector had an equally positive year - six new insurance companies, three new insurance management licences and a total of 12 insurers and insurance brokers were authorised to provide cross-border services in 22 EU member states.
Trust services saw a boost during the year through the authorisation of 13 new trustees, including a number of international trust management groups.
MFSA chairman Joe Bannister said that ensuring stability, adherence to regulatory laws and protecting consumer interests remained high on the MFSA agenda, as did its commitment to respond to the needs of the industry with speed and efficiency.
"As always, people will gravitate to places with skills, expertise and robust systems to protect the consumer and investor. These are the things we must ensure remain and the qualities we must effectively promote."
The MFSA Annual Report 2006 is also being published on the MFSA website www.mfsa.com.mt
PIF consultation underway
The MFSA is currently reviewing the regulatory regime applicable to Professional Investor Funds (PIFs) and is consulting the industry about a new proposed class of PIF targeting extraordinary investors and about the new Professional Investor Funds Sourcebook.
The new PIF class in the current PIF regime will be subject to lighter regulatory requirements than those applicable to PIFs targeting experienced or qualifying investors. However, PIFs targeting extraordinary investors will be subject to more onerous eligibility criteria and a higher minimum investment amount for investors vis-à-vis PIFs targeting experienced or qualifying investors.
In the case of third party managed PIFs promoted to extraordinary investors, the MFSA is committed to review the application form and the supporting documentation and to provide its comments to the applicant within three business days from submission of a complete application form and supporting documentation.
The minimum initial investment is being proposed to be set at US$1 million or equivalent in another currency.
The changes being proposed to the PIF sourcebook deal with the appointment of a compliance officer and a money laundering reporting officer; the requirement to prepare a compliance report on a six monthly basis; leverage restrictions applicable to experienced investor funds which has been increased to 100 per cent of NAV; experienced investor funds set up as feeder funds or funds of hedge funds and the appointment of at least one independent director.
The MFSA is expecting comments from the industry about the revised PIF sourcebook and the new PIF class by next Monday.
Graduates from the Institute of Financial Services
MFSA chairman Joe Bannister has presented certificates to students who completed various courses organised by the Institute of Financial Services in Malta.
During the ceremony, Prof. Bannister highlighted the importance of training from a regulatory standpoint and mentioned that Malta is rapidly developing in an important financial centre. This, he said, was attributable to the high standards of competence and professionalism that could be found in Malta. Prof. Bannister said the availability of skilled personnel was one of the critical success factors in determining business location by this industry.
Prof. Bannister told the students that by enhancing their own professional standards and those of the industry they would also be contributing to Malta's competitive advantages as well as their own personal development.
"It is important to have competent people providing financial services to consumers to help build confidence in the financial markets and ultimately protect consumers from unsuitable conduct."
First CEBS conference
The Committee of European Banking Supervisors (CEBS) is organising the first CEBS conference on May 9 in London to discuss the progress made in the first three years of CEBS work and the challenges ahead.
CEBS advises the European Commission on banking policy issues, in particular for the preparation of draft measures for the implementation of European legislation. CEBS aims at fostering a common day-to-day implementation and application of Community legislation through convergence of supervisory practices and also promotes supervisory cooperation and provide for the exchange of supervisory information.
The conference will host high-level speakers offering the benefit of their expertise and vision in the area of financial services. Participants will include CEBS members and observers, representatives from EU institutions, members of CEBS Consultative Panel, market participants and end-users, third countries' supervisors, representatives from the sister committees, CESR and CEIOPS.
Anyone interested in attending this event can register by visiting www.apex.co.uk/CEBS
Licences issued in March 2007
(i) Collective Investment Schemes
Collective Investment Scheme licence issued to NBCG Fund SICAV plc in respect of Summerhill Sub-Fund. This fund is a Professional Investor Fund targeting Qualifying Investors.
Collective Investment Scheme licence issued to Norvik Malta Fund SICAV plc in respect of Norvik Property Fund, Norvik Securties Fund and Norvik Venture Capital Fund. This fund is a Professional Investor Fund targeting Qualifying and Experienced Investors.
Collective Investment Scheme licence to carry out activities of a Maltese UCITS was issued to Celsius Global Funds SICAV plc in respect of the ICI Adjusted Fund (EUR).
(ii) Investment services
Charts Investment Management Service Limited Category 2 Investment Services Licence upgraded to a Category 3.
(iii) Credit institutions
A credit institution licence has been granted to Banif Bank (Malta) plc.
(iv) Financial institutions
A financial institution licence has been issued to Triton Funding Limited.
(v) Surrender of licences
Surrender of collective investment scheme licence issued to Garanti Funds SICAV in respect of the Turkish Garanti Euro Capital Growth Fund.
Surrender of collective investment scheme licence issued to Garanti Professional Investor Funds SICAV plc in respect of the Garanti Turkish Lira Capital Growth Fund.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators as follows:
March 2, 2007: The Slovene Securities Market Agency issued a warning against Strategic Capital Partners Portfolio Management AG.
March 7, 2007: The Slovene Securities Market Agency issued a warning against Globe Invest AG, Vienna.
March 9, 2007: The SWX Swiss Exchange issued a warning against PAX-Anlage AG.
March 13, 2007: The UK Financial Services Authority issued a warning against Evergreen Equity and Omega Advisory Group.
March 15, 2007: The SWX Swiss Exchange issued a warning against Schmolz & Bickenbach AG.
March 16, 2007: The SWX Swiss Exchange issued a warning against Zwahlen & Mayr SA.
March 16, 2007: The Danish Financial Supervisory Authority issued a warning against Pegasus Ventures.
March 20, 2007: JFSC (Jersey) issued a warning against Leeds Bank Plc.
• Full releases can be accessed from the warnings for investors section in the MFSA .
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer
Malta's financial services industry had another very good year in 2006. According to the Malta Financial Services Authority's annual report, just published, the sector remained stable, volumes grew in every area and business with the EU and the rest of the world continued to expand.The net asset value of locally-based collective investment schemes rose to nearly €5 billion as the number of licensed investment funds increased by 52 to 200 at the end of the year.
The report confirms Malta's increasing popularity as a domicile for hedge funds and European retail funds, known as UCITS. Fund administration activity increased strongly. Bank balance sheet totals grew by 43 per cent.
The insurance sector had an equally positive year - six new insurance companies, three new insurance management licences and a total of 12 insurers and insurance brokers were authorised to provide cross-border services in 22 EU member states.
Trust services saw a boost during the year through the authorisation of 13 new trustees, including a number of international trust management groups.
MFSA chairman Joe Bannister said that ensuring stability, adherence to regulatory laws and protecting consumer interests remained high on the MFSA agenda, as did its commitment to respond to the needs of the industry with speed and efficiency.
"As always, people will gravitate to places with skills, expertise and robust systems to protect the consumer and investor. These are the things we must ensure remain and the qualities we must effectively promote."
The MFSA Annual Report 2006 is also being published on the MFSA website www.mfsa.com.mt
PIF consultation underway
The MFSA is currently reviewing the regulatory regime applicable to Professional Investor Funds (PIFs) and is consulting the industry about a new proposed class of PIF targeting extraordinary investors and about the new Professional Investor Funds Sourcebook.
The new PIF class in the current PIF regime will be subject to lighter regulatory requirements than those applicable to PIFs targeting experienced or qualifying investors. However, PIFs targeting extraordinary investors will be subject to more onerous eligibility criteria and a higher minimum investment amount for investors vis-à-vis PIFs targeting experienced or qualifying investors.
In the case of third party managed PIFs promoted to extraordinary investors, the MFSA is committed to review the application form and the supporting documentation and to provide its comments to the applicant within three business days from submission of a complete application form and supporting documentation.
The minimum initial investment is being proposed to be set at US$1 million or equivalent in another currency.
The changes being proposed to the PIF sourcebook deal with the appointment of a compliance officer and a money laundering reporting officer; the requirement to prepare a compliance report on a six monthly basis; leverage restrictions applicable to experienced investor funds which has been increased to 100 per cent of NAV; experienced investor funds set up as feeder funds or funds of hedge funds and the appointment of at least one independent director.
The MFSA is expecting comments from the industry about the revised PIF sourcebook and the new PIF class by next Monday.
Graduates from the Institute of Financial Services
MFSA chairman Joe Bannister has presented certificates to students who completed various courses organised by the Institute of Financial Services in Malta.
During the ceremony, Prof. Bannister highlighted the importance of training from a regulatory standpoint and mentioned that Malta is rapidly developing in an important financial centre. This, he said, was attributable to the high standards of competence and professionalism that could be found in Malta. Prof. Bannister said the availability of skilled personnel was one of the critical success factors in determining business location by this industry.
Prof. Bannister told the students that by enhancing their own professional standards and those of the industry they would also be contributing to Malta's competitive advantages as well as their own personal development.
"It is important to have competent people providing financial services to consumers to help build confidence in the financial markets and ultimately protect consumers from unsuitable conduct."
First CEBS conference
The Committee of European Banking Supervisors (CEBS) is organising the first CEBS conference on May 9 in London to discuss the progress made in the first three years of CEBS work and the challenges ahead.
CEBS advises the European Commission on banking policy issues, in particular for the preparation of draft measures for the implementation of European legislation. CEBS aims at fostering a common day-to-day implementation and application of Community legislation through convergence of supervisory practices and also promotes supervisory cooperation and provide for the exchange of supervisory information.
The conference will host high-level speakers offering the benefit of their expertise and vision in the area of financial services. Participants will include CEBS members and observers, representatives from EU institutions, members of CEBS Consultative Panel, market participants and end-users, third countries' supervisors, representatives from the sister committees, CESR and CEIOPS.
Anyone interested in attending this event can register by visiting www.apex.co.uk/CEBS
Licences issued in March 2007
(i) Collective Investment Schemes
Collective Investment Scheme licence issued to NBCG Fund SICAV plc in respect of Summerhill Sub-Fund. This fund is a Professional Investor Fund targeting Qualifying Investors.
Collective Investment Scheme licence issued to Norvik Malta Fund SICAV plc in respect of Norvik Property Fund, Norvik Securties Fund and Norvik Venture Capital Fund. This fund is a Professional Investor Fund targeting Qualifying and Experienced Investors.
Collective Investment Scheme licence to carry out activities of a Maltese UCITS was issued to Celsius Global Funds SICAV plc in respect of the ICI Adjusted Fund (EUR).
(ii) Investment services
Charts Investment Management Service Limited Category 2 Investment Services Licence upgraded to a Category 3.
(iii) Credit institutions
A credit institution licence has been granted to Banif Bank (Malta) plc.
(iv) Financial institutions
A financial institution licence has been issued to Triton Funding Limited.
(v) Surrender of licences
Surrender of collective investment scheme licence issued to Garanti Funds SICAV in respect of the Turkish Garanti Euro Capital Growth Fund.
Surrender of collective investment scheme licence issued to Garanti Professional Investor Funds SICAV plc in respect of the Garanti Turkish Lira Capital Growth Fund.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators as follows:
March 2, 2007: The Slovene Securities Market Agency issued a warning against Strategic Capital Partners Portfolio Management AG.
March 7, 2007: The Slovene Securities Market Agency issued a warning against Globe Invest AG, Vienna.
March 9, 2007: The SWX Swiss Exchange issued a warning against PAX-Anlage AG.
March 13, 2007: The UK Financial Services Authority issued a warning against Evergreen Equity and Omega Advisory Group.
March 15, 2007: The SWX Swiss Exchange issued a warning against Schmolz & Bickenbach AG.
March 16, 2007: The SWX Swiss Exchange issued a warning against Zwahlen & Mayr SA.
March 16, 2007: The Danish Financial Supervisory Authority issued a warning against Pegasus Ventures.
March 20, 2007: JFSC (Jersey) issued a warning against Leeds Bank Plc.
• Full releases can be accessed from the warnings for investors section in the MFSA .
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer