-
Licensing Requirments
for Collective Investment Schemes
The
Investment Services Act requires a Collective Investment Scheme operating
in or from Malta or organised under the laws of Malta to be licensed as
a valid Collective Investment Scheme ("CIS" or "Scheme").
A
CIS licence is also required as a prerequisite for the primary or secondary
listing on the Malta Stock Exchange ("MSE") of overseas based CISS.
The
MFSC will grant a licence to a Collective Investment Scheme if it satisfies
the fit and proper criteria, and if it complies with the relevant regulations
and if its directors or trustees and officers are capable of carrying out
the functions required in operating the scheme. The fit and proper
test is satisfied by demonstrating integrity, competence and solvency in
assessing an application for a licence, the MFSC considers a number of
criteria which include:
-
the protection of the
public;
-
the best economic interests
of Malta; and
-
the qualifications of
the parties connected with the scheme.
In
considering an application for a licence for a Collective Investment Scheme,
the MFSC will take into account the nature of the scheme, the targeted
investors, and the experience and track record of the parties involved
with the scheme. The application process contemplates direct communication
between the MFSC and the applicants or their professional representatives
to address the ability of the scheme and its sponsors to fulfill the MFSC's
licensing criteria.
Application
The
MFSC uses a standard application form. Initially, unsigned draft
copies of the application may be submitted to the MFSC as the basis for
discussions between the applicants and the MFSC regarding the conditions
and requirements for a licence. In addition to the application and
the appropriate fee, the following must be submitted:
-
the constitutional documents
of the Collective Investment Scheme, and any other documents affecting
the rights of participants in the scheme;
-
the latest annual report
and any interim reports, if available;
-
a prospectus;
-
a business plan covering
at least the first three years of operations, in the case of a scheme that
has not been in existence for at least three years; or, if the scheme has
been in existence for three or more years, information about the past and
current operations of the scheme;
-
copies of the management
agreement, custodian agreement and other relevant agreements;
-
copies of audited accounts
for the manager, custodian, advisor and registrar;
-
details regarding the
marketing and distribution of the units.
Fees
| Licence Type |
Application
Lm
|
Annual
Lm
|
Application
GBP
|
Annual
GBP
|
Application
USD
|
Annual
USD
|
|
| Investment Services |
|
|
|
|
|
|
| Category 1 |
250
|
400
|
380
|
605
|
640
|
1020
|
| Category 2 |
300
|
600
|
455
|
910
|
765
|
1530
|
| Category 3 |
500
|
1000
|
760
|
1515
|
1275
|
2550
|
| Category 4 |
1000
|
2000
|
1515
|
3030
|
2550
|
5100
|
| CIS **-Scheme |
650
|
700
|
985
|
1060
|
1660
|
1785
|
| CIS **-Per Sub Fund up to 15 |
125
|
125
|
190
|
190
|
320
|
320
|
| CIS **-Per Sub Fund -16 or more |
75***
|
75
|
115
|
115
|
190
|
190
|
| CIS **-Listing **** |
350
|
350
|
530
|
530
|
890
|
890
|
 |
|
|
|
|
|
|
* Exchange rate as
at 15 April 1998 - approximate GBP and USD equivalent.
** CIS = Collective
Investment Scheme
*** Where a Scheme
has 16 or more sub funds, the first 15 are charged at Lml25 each and the
16th and subsequent are charged at Lm75 each.
**** Applies where
a CIS is formed or established other than in accordance with the laws of
Malta and which does not carry on any activity in or from within Malta
except as may be necessary for securing a listing on the Malta Stock Exchange
and any other ancillary steps as may be required in compliance with or
in furtherance of the listing requirements specified in bye-laws as may
be made in terms of Section 7 of the Malta Stock Exchange Act. |
