Regulations, 2013

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19, 124, 16 ta’ Awwissu, 2013

L.N. 252 of 2013

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Exemption) (Amendment)

Regulations, 2013

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister for Finance, acting on the

advice of the Malta Financial Services Authority, has made the

following regulations:-

The title of these regulations is the Investment Services Citation.

Act (Exemption) (Amendment) Regulations, 2013 and these

regulations shall be read and construed as one with the Investment S.L. 370.02

Services Act (Exemption) Regulations, hereinafter referred to as "the

principal regulations".

In sub-regulation (2) of regulation 1 of the principal Amends

regulations, for the words "the Directive" there shall be substituted regulation

the principal

the words "the MiFID Directive, and Articles 2(3)(b), (c), (e), (f) and regulations.

(g) and Article 3(1) of the AIFM Directive".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

the present provision shall be re-numbered as sub-

regulation (1) thereof;

(b)

in sub-regulation (1) thereof, as re-numbered -

(i) immediately adter the definition "the Act",

there shall be added the following new definitions

" "AIFM Directive" means Directive 2011/

61/EU of the European Parliament and of the

Council of 8 June 2011 on Alternative

Investment Fund Managers and amending

Directives 2003/41/EC and 2009/65/EC and

Regulations (EC) No 1060/ 2009 and (EU) No

1095/2010, as amended from time to time, and

includes any implementing measures that have

been or may be issued thereunder;

"alternative investment fund" or "AIF"

means a collective investment scheme, including

subfunds thereof, which raises capital from a

number of investors, with a view to investing it

in accordance with a defined investment policy

for the benefit of those investors, and which does

not qualify as a UCITS Scheme in terms of the

UCITS Directive;

"alternative investment fund manager" or

"AIFM" means a legal person whose regular

business is managing one or more AIFs;";

(ii)

the definition "the Directive" shall be deleted;

(iii) immediately after the definition "market

operator" there shall be added the following new

definition

" "MiFID Directive" means Directive 2004/

39/EC of the European Parliament and of the

Council of 21 April 2004 on markets in financial

instruments amending Council Directives 85/

611/EEC and 93/6/EEC and Directive 2000/12/

EC of the European Parliament and of the

Council and repealing Council Directive 93/22/

EEC, as amended from time to time, and

includes any implementing measures that have

been or may be issued thereunder;";

(iv) immediately after the definition "multilateral

trading facility", there shall be added the following new

definition

" "Occupational Pensions Directive" means

Directive 2003/41/EC of the European

Parliament and of the Council of the 3rd June,

2003 on the activities and supervision of

institutions for occupational retirement provision

as may be amended from time to time and

includes any implementing measures that may be

issued thereunder;";

(v) immediately after the definition "private

company" there shall be added the following new

definitions

" "professional investor" shall have the

meaning assigned to "professional client" in the

Investment Services Rules or an investor who

has opted to be treated as a professional client in

terms of the said Rules;

"retail investor" means an investor who is

not a professional investor;

"UCITS Directive" means Directive 2009/

65/EC of the European Parliament and of the

Council of 13 July 2009 on the coordination of

laws, regulations and administrative provisions

relating

to

undertakings

for

collective

investment in transferable securities (UCITS)

(recast), as amended from time to time, and

includes any implementing measures that have

been or may be issued thereunder;"; and

(c)

immediately after sub-regulation (1) thereof, there

shall be added the following new sub-regulation

"(2) Words and expressions used in these

regulations which are also used in the Act but which are

not defined herein shall have the same meaning as in the

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

the principal

regulations.

(a) in paragraph (s) of sub-regulation (1) thereof, for the

words "or consequent to, such representations.", there shall be

substituted the words "or consequent to, such representations;",

and immediately thereafter, there shall be added the following

new paragraphs

"(t) an AIFM in so far as it manages one or more

AIFs whose only investors are the AIFM or the parent

undertakings or the subsidiaries of the AIFM or other

subsidiaries of those parent undertakings

Provided that this exemption shall apply

solely for the said activity, and only as long as none of the

said investors is itself an AIF;

(u) institutions for occupational retirement

provision which are covered by the Occupational Pensions

Directive, including, where applicable, the licensed entities

responsible for managing such institutions and acting on

their behalf referred to in Article 2(1) of the said Directive

or the investment managers appointed pursuant to Article

19(1) of the said Directive, in so far as they do not manage

AIFs;

(v) supranational institutions, such as the

European Central Bank, the European Investment Bank,

the European Investment Fund, the European Development

Finance Institutions and bilateral development banks, the

World Bank, the International Monetary Fund and other

supranational institutions and similar international

organisations, in the event that such institutions or

organisations manage AIFs and in so far as those AIFs act

in the public interest;

(w) national, regional and local governments and

bodies or other institutions which manage collective

investment schemes supporting social security and pension

systems.

(x) a person providing management services to

employee participation schemes or employee savings

schemes;

(y)

securitisation special purpose entities."; and

(b) in sub-regulation (2) thereof, for the words "The

exemptions laid down in paragraphs (f), (g), (h), (l) and (q)",

there shall be substituted the words "The exemptions laid down

in paragraphs (f), (g), (h), (l), (q) and (t)".

Sub-regulation (1) of regulation 5 of the principal

regulations shall be amended as follows

(a)

in paragraph (c) thereof, for the words "approved by

the competent authority.", there shall be substituted the words

"approved by the competent authority;"; and

(b) immediately after paragraph (c) thereof, there shall

be added the following new paragraph

"(d) investment undertakings, such as family

office vehicles, which invest the private wealth of

investors without raising external capital.".

Immediately after regulation 5 of the principal regulations,

there shall be added the following new regulation

" Exemption

6. (1) The following collective

from risk

investment schemes are hereby being

spreading.

exempted from the requirement to operate

according to the principle of risk spreading

(a)

alternative investment funds

marketed to professional investors;

(b) a collective investment

scheme licensed as a professional

investor fund targeting qualifying

investors in terms of the Investment

Services Rules;

(c)

a collective investment

scheme licensed as a professional

investor fund targeting extraordinary

investors in terms of the Investment

Services Rules.

(2) The competent authority may from

time to time prescribe the requirements and

conditions for granting such exemption in the

Investment Services Rules.".

€0.27