MFSA Newsletter
Hedge fund regime showcased in London The Malta Alternative for Hedge Funds was the subject of a seminar organised by The Fund Business magazine for hedge fund specialists in London last week.Designed to deliver a focused briefing on the key issues...
Hedge fund regime showcased in London
The Malta Alternative for Hedge Funds was the subject of a seminar organised by The Fund Business magazine for hedge fund specialists in London last week.
Designed to deliver a focused briefing on the key issues related to Malta's growing reputation as a premier hedge fund domicile, the event was chaired by The Fund Business' editor Bob Campion.
Guests were given the latest picture from specialist presenters and through real-life case studies as well as a preview of the awaited Extraordinary Investor Fund framework that will shortly be coming into effect.
The event followed on the publication of a special peport on Malta published with the April/May issue of The Fund Business.
The Malta Alternative supplement looked at Malta's transformation into a fast-moving and dynamic financial services centre.
The report covered the revision of the legislative landscape, the innovative fund structures now on offer, developments in the insurance industry, trust law and the emerging framework for occupational pensions.
The Malta Report and the seminar were supported by the MFSA and a number of private sector entities.
Reinsurance directive being transposed into Maltese law
The MFSA is proposing a series of amendments to Maltese law as part of the exercise to transpose the EU Reinsurance Directive 2005/68/EC of November 16, 2005 into Maltese insurance legislation.
The new directive has amended EU Council directives 73/239/EEC, 92/49/EEC, as well as directives 98/78/EC and 2002/83/EC. It is introducing a harmonised framework for reinsurance supervision under which reinsurance undertakings approved in one member state will have the right to carry on business in other member states.
The MFSA's proposed amendments will update Malta's licensing and supervisory framework for reinsurance companies and streamline it with the EU directive.
The proposed amendments include changes in the definition of certain terms and the calculation of the required margin of solvency for life reinsurance activities on the basis of solvency margin calculations for non-life business.
MFSA launches CEBS Supervisory Disclosure Framework
The MFSA has launched on its website a Supervisory Disclosure Framework issued by the Committee of European Banking Supervisors (CEBS), in relation to Malta's transposition of the Capital Requirements Directive 2006/48/EC (the CRD).
The aim of the Supervisory Disclosure Framework is to allow meaningful comparisons of supervisory rules and practices across EU member states and to enhance the effectiveness of supervision and help to promote a level playing field throughout Europe.
The CEBS website will serve as a centralised electronic repository and will allow for quick and easy comparison of the relevant information whilst the individual websites of national competent authorities will provide the exhaustive and detailed information required by the CRD.
The tables on the MFSA website will provide access to information regarding the texts of laws, regulations, administrative rules and general guidance adopted in the field of prudential regulation and supervision in Malta.
The supervisory disclosure requirements cover options and national discretions, general criteria as well as methodologies used in the Supervisory Review and Evaluation Process. Moreover, from 2008, disclosure will also include aggregate statistical data on key aspects of the implementation of the prudential framework for regulation and supervision in Malta.
The information tables developed by CEBS may be downloaded from www.mfsa.com.mt (Banking/Supervisory Disclosure).
Malta's transposition of MiFID
The MFSA has issued a consultation document on the transposition of MiFID (the Markets in Financial Instruments Directive) into Maltese law. It follows on other consultation documents issued in relation to the amendments to the Financial Markets Act and the Investment Services Act, as well as revisions to the current Investment Services Guidelines.
The circular proposes new legal notices and amendments to existing regulations under the Financial Markets Act and the Investment Services Act.
These will include new regulations under the Financial Markets Act relating to transparency, European rights for regulated markets, membership and access, authorisation requirements and off-market deals, and changes to subsidiary legislation under the Investment Services Act relating to the appointment of tied agents, European passport rights for investment firms and for persons operating multilateral trading facilities, licence and other fees, and exemption regulations.
This consultation document may be downloaded from the MFSA website: www.mfsa.com.mt. The MFSA invites comments from the financial services industry by not later than Monday, July 2.
Ecofin adopts hedge funds guidelines
European finance ministers have adopted guidelines on the definition of hedge funds and asset management, which is the first official step towards a regulatory framework.
The draft conclusions adopted by the European finance ministers at their monthly council meeting in Brussels (Ecofin) are designed to define what constitutes a hedge fund and specific issues surrounding them. Currently, the majority of finance ministers favour the industry-led approach centred around a code of conduct which is being put forward by EU Internal Market Commissioner Charlie McCreevy.
Next year sees the release of a European Commission report on the pros and cons of setting up a single regulatory framework.
Information guides published
The MFSA has launched two new information guides on the establishment and regulation of occupational retirement funds and occupational retirement schemes and related parties.
The primary legislation in this area, namely the Special Funds Act, has already fully implemented Directive 2003/41/EC of the European Parliament and of the Council of June 3, 2003 on the activities and supervision of institutions for occupational retirement provision, also referred to as the EU Pensions Directive.
The act also provides for the establishment of retirement funds which can be used as pension-pooling vehicles.
The Guide to the Establishment of Retirement Funds aims to provide an overview of the distinguishing features of Malta's legislative framework in the area of pension pooling vehicles, namely retirement funds, and their related parties.
The Guide to the Establishment of Occupational Retirement Schemes aims at assisting promoters of occupational pensions by providing an overview of the legislative and regulatory gamework applicable in Malta in relation to occuptional retirement schems and their related parties.
The guides are also avail-able on the MFSA website: www.mfsa.com.mt
Online filing of documents
The next familiarisation session on the use of the new electronic filing system of the Registry of Companies will be held at MFSA in Attard on June 12, at 2.30 p.m.
The session is open to professionals, company officials and corporate services providers who make regular use of the Registry of Companies and will last about two hours. Those who are interested, and have not already registered their interest following the announcement made in the last edition of the MFSA Newsletter, are kindly requested to send full contact details to email address: registrations@mfsa.com.mt under the subject heading Online Registration Session.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website (www.mfsa.com.mt).
Licences issued this month
(i) Collective Investment Scheme
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of Enhanced Multi Strategy Dynamic Fund.
(ii) Trusts and Trustees
JP Morgan Trustee has been authorised to act as Trustee in terms of the Trusts and Trustees Act.
The Malta Alternative for Hedge Funds was the subject of a seminar organised by The Fund Business magazine for hedge fund specialists in London last week.Designed to deliver a focused briefing on the key issues related to Malta's growing reputation as a premier hedge fund domicile, the event was chaired by The Fund Business' editor Bob Campion.
Guests were given the latest picture from specialist presenters and through real-life case studies as well as a preview of the awaited Extraordinary Investor Fund framework that will shortly be coming into effect.
The event followed on the publication of a special peport on Malta published with the April/May issue of The Fund Business.
The Malta Alternative supplement looked at Malta's transformation into a fast-moving and dynamic financial services centre.
The report covered the revision of the legislative landscape, the innovative fund structures now on offer, developments in the insurance industry, trust law and the emerging framework for occupational pensions.
The Malta Report and the seminar were supported by the MFSA and a number of private sector entities.
Reinsurance directive being transposed into Maltese law
The MFSA is proposing a series of amendments to Maltese law as part of the exercise to transpose the EU Reinsurance Directive 2005/68/EC of November 16, 2005 into Maltese insurance legislation.
The new directive has amended EU Council directives 73/239/EEC, 92/49/EEC, as well as directives 98/78/EC and 2002/83/EC. It is introducing a harmonised framework for reinsurance supervision under which reinsurance undertakings approved in one member state will have the right to carry on business in other member states.
The MFSA's proposed amendments will update Malta's licensing and supervisory framework for reinsurance companies and streamline it with the EU directive.
The proposed amendments include changes in the definition of certain terms and the calculation of the required margin of solvency for life reinsurance activities on the basis of solvency margin calculations for non-life business.
MFSA launches CEBS Supervisory Disclosure Framework
The MFSA has launched on its website a Supervisory Disclosure Framework issued by the Committee of European Banking Supervisors (CEBS), in relation to Malta's transposition of the Capital Requirements Directive 2006/48/EC (the CRD).
The aim of the Supervisory Disclosure Framework is to allow meaningful comparisons of supervisory rules and practices across EU member states and to enhance the effectiveness of supervision and help to promote a level playing field throughout Europe.
The CEBS website will serve as a centralised electronic repository and will allow for quick and easy comparison of the relevant information whilst the individual websites of national competent authorities will provide the exhaustive and detailed information required by the CRD.
The tables on the MFSA website will provide access to information regarding the texts of laws, regulations, administrative rules and general guidance adopted in the field of prudential regulation and supervision in Malta.
The supervisory disclosure requirements cover options and national discretions, general criteria as well as methodologies used in the Supervisory Review and Evaluation Process. Moreover, from 2008, disclosure will also include aggregate statistical data on key aspects of the implementation of the prudential framework for regulation and supervision in Malta.
The information tables developed by CEBS may be downloaded from www.mfsa.com.mt (Banking/Supervisory Disclosure).
Malta's transposition of MiFID
The MFSA has issued a consultation document on the transposition of MiFID (the Markets in Financial Instruments Directive) into Maltese law. It follows on other consultation documents issued in relation to the amendments to the Financial Markets Act and the Investment Services Act, as well as revisions to the current Investment Services Guidelines.
The circular proposes new legal notices and amendments to existing regulations under the Financial Markets Act and the Investment Services Act.
These will include new regulations under the Financial Markets Act relating to transparency, European rights for regulated markets, membership and access, authorisation requirements and off-market deals, and changes to subsidiary legislation under the Investment Services Act relating to the appointment of tied agents, European passport rights for investment firms and for persons operating multilateral trading facilities, licence and other fees, and exemption regulations.
This consultation document may be downloaded from the MFSA website: www.mfsa.com.mt. The MFSA invites comments from the financial services industry by not later than Monday, July 2.
Ecofin adopts hedge funds guidelines
European finance ministers have adopted guidelines on the definition of hedge funds and asset management, which is the first official step towards a regulatory framework.
The draft conclusions adopted by the European finance ministers at their monthly council meeting in Brussels (Ecofin) are designed to define what constitutes a hedge fund and specific issues surrounding them. Currently, the majority of finance ministers favour the industry-led approach centred around a code of conduct which is being put forward by EU Internal Market Commissioner Charlie McCreevy.
Next year sees the release of a European Commission report on the pros and cons of setting up a single regulatory framework.
Information guides published
The MFSA has launched two new information guides on the establishment and regulation of occupational retirement funds and occupational retirement schemes and related parties.
The primary legislation in this area, namely the Special Funds Act, has already fully implemented Directive 2003/41/EC of the European Parliament and of the Council of June 3, 2003 on the activities and supervision of institutions for occupational retirement provision, also referred to as the EU Pensions Directive.
The act also provides for the establishment of retirement funds which can be used as pension-pooling vehicles.
The Guide to the Establishment of Retirement Funds aims to provide an overview of the distinguishing features of Malta's legislative framework in the area of pension pooling vehicles, namely retirement funds, and their related parties.
The Guide to the Establishment of Occupational Retirement Schemes aims at assisting promoters of occupational pensions by providing an overview of the legislative and regulatory gamework applicable in Malta in relation to occuptional retirement schems and their related parties.
The guides are also avail-able on the MFSA website: www.mfsa.com.mt
Online filing of documents
The next familiarisation session on the use of the new electronic filing system of the Registry of Companies will be held at MFSA in Attard on June 12, at 2.30 p.m.
The session is open to professionals, company officials and corporate services providers who make regular use of the Registry of Companies and will last about two hours. Those who are interested, and have not already registered their interest following the announcement made in the last edition of the MFSA Newsletter, are kindly requested to send full contact details to email address: registrations@mfsa.com.mt under the subject heading Online Registration Session.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website (www.mfsa.com.mt).
Licences issued this month
(i) Collective Investment Scheme
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of Enhanced Multi Strategy Dynamic Fund.
(ii) Trusts and Trustees
JP Morgan Trustee has been authorised to act as Trustee in terms of the Trusts and Trustees Act.