Investment Services Act (Fees) Regulations, 2014

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,196, 17 ta’ Jannar, 2014

L.N. 9 of 2014

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Fees) Regulations, 2014

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister for Finance, after consultation

with the Malta Financial Services Authority, has made the following

regulations:-

(1) The title of these regulations is the Investment Citation and

commencement.

Services Act (Fees) Regulations, 2014.

(2) These regulations shall come into force on the 1st January

2014, and shall apply to fees falling due on or after the said date.

Nothing in these regulations shall be deemed to affect the liability in

respect of any fees due under the Investment Services Act (Licence L.N.359 of

and Other Fees) Regulations, 2008 prior to the coming into force of 2008.

these regulations.

(1)

In these regulations, unless the context otherwise

requires -

"the Act" means the Investment Services Act;

"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 the management of one or

more AIFs;

"competent authority" means the Malta Financial Services

Authority as defined in terms of article 2 of the Act;

"eligible counterparties" has the same meaning as that assigned

to it by the Investment Services Rules issued by the competent

authority in terms of article 6 of the Act;

"European AIF" has the same meaning as that assigned to it by

regulation 2 of the Investment Services Act (Marketing of Alternative

Investment Funds) Regulations;

"European AIFM" has the same meaning as that assigned to it

by regulation 2 of the Investment Services Act (Alternative

Investment Fund Manager) (Passport) Regulations;

"European investment firm" has the same meaning as that

assigned to it by regulation 2 of the European Passport Rights for

Investment Firms Regulations;

"European management company" has the same meaning as that

assigned to it by regulation 2 of the Investment Services Act (UCITS

Management Company Passport) Regulations;

"European UCITS" has the same meaning as that assigned to it

by regulation 2 of the Investment Services Act (Marketing of UCITS)

Regulations;

"hold or control" includes the holding by a licence holder of a

mandate over a client’s bank account, or of a power of attorney to

control a client’s assets: provided that a licence holder shall not be

considered to be holding or controlling a client’s money or assets if a

recommendation made by the licence holder can be placed into effect

only by the customer or by a third party, such as a bank, acting on the

customer’s behalf. The competent authority shall have the discretion

to determine whether a licence holder is holding or controlling

clients’ money or assets in any given case;

"home Member State or EEA State", in relation to a European

investment firm, has the same meaning as that assigned to it by

regulation 2 of the European Passport Rights for Investment Firms

Regulations;

"professional client" has the same meaning as that assigned to it

in the Investment Services Rules or an investor who has opted to be

treated as a professional investor in terms of the said Rules;

"revenue" means the net revenue which shall be calculated in

the following manner: the gross revenue indicated in the annual

audited financial statements and that is derived from activities for

which an investment services licence was issued in terms of article 3

of the Act, less any commissions that are directly related to the

acquisition of the said gross revenue, paid or payable to third parties;

"tied agent" has the same meaning as that assigned to it by

regulation 2 of the Investment Services Act (Tied Agents)

Regulations.

(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 Act.

Any person or body or collective investment scheme shall, Payment of

upon submission of an application for the granting of a licence, application fee.

recognition, registration or authorisation, irrespective of whether the

application is eventually accepted or not, pay to the competent

authority the application fee established in the Second Column of the

Schedule.

There shall be paid to the competent authority the Payment of

annual

following annual supervisory fees, as applicable

supervisory

fees.

(a)

investment services licence holders shall, upon the

submission of the annual audited financial statements, pay an

annual supervisory fee as established in the Third Column of the

Schedule

Provided that the first annual supervisory fee shall be due

immediately once a licence is granted and shall be equal to a

proportion of the minimum fee. The first annual supervisory fee

payable shall be proportionate to the period remaining between

the date of the granting of the licence and the established date

for the submission of the annual audited financial statements;

(b) collective investment schemes, recognised persons

or registered persons shall, upon the anniversary of the date of

the granting of a licence, recognition, or registration, pay the

annual supervisory fee established in the Third Column of the

Schedule

Provided that the first annual supervisory fee shall be

payable immediately once a licence, recognition or registration

is granted.

(1)

There shall be paid to the competent authority by

Payment to the

competent

authority.

(a)

any European investment firm establishing a branch

in Malta in terms of regulation 3 of the European Passport S.L. 370.10

Rights for Investment Firms Regulations, upon notification to

the competent authority that it wants to establish a branch in

Malta and upon the commencement of business in Malta, the

relevant notification and supervisory fees established in the

Second and Third Column, respectively, of the Schedule;

(b) any European management company establishing a

branch in Malta in terms of regulation 9 of the Investment S.L. 370.20

Services Act (UCITS Management Company Passport)

Regulations, upon notification to the competent authority that it

wants to establish a branch in Malta and upon the

commencement of business in Malta, the relevant notification

and supervisory fees established in the Second and Third

Column, respectively, of the Schedule;

(c)

any European AIFM establishing a branch in Malta

in terms of regulation 7 of the Investment Services Act

(Alternative Investment Fund Manager) (Passport) Regulations,

upon notification to the competent authority that it wants to

establish a branch in Malta and upon the commencement of

business in Malta, the relevant notification and supervisory fees

established in the Second and Third Column, respectively, of

the Schedule;

(d) any European UCITS having its units marketed in

Malta in terms of regulation 8 of the Investment Services Act

(Marketing of UCITS) Regulations, upon notification to the

competent authority that it wants to market its units in Malta

and upon the commencement of such marketing in Malta, the

relevant notification and supervisory fees established in the

Second and Third Column, respectively of the Schedule;

(e)

any European AIF having its units marketed in

Malta in terms of regulations 3 and 5 of the Investment Services

Act (Marketing of Alternative Investment Funds) Regulations,

upon notification to the competent authority that it wants to

market its units in Malta and upon the commencement of such

marketing in Malta, the relevant notification and supervisory

fees established in the Second and Third Column, respectively

of the Schedule;

(f)

an AIFM, whether established in an EU or EEA

Member State or in a third country, wishing to market in Malta

units or shares of an AIF whether established in an EU or EEA

Member State other than Malta or in a third country in terms of

regulations 7 and 22 of the Investment Services Act (Alternative

Investment Fund Manager) (Third Country) Regulations shall,

upon notification to the competent authority that it wants to

market by private placement in Malta pay, the relevant

notification and supervisory fees established in the Second and

Third Column, respectively, of the Schedule.

(2) In addition to the above fees, the following annual

supervisory fees established in the Third Column of the Schedule

shall also be paid to the competent authority by

(a)

European Investment Firms, establishing a branch in

Malta, annually, upon the anniversary of the date on which they

commence business in Malta;

(b) European management companies establishing a

branch in Malta, annually, upon the anniversary of the date on

which they commence business in Malta;

(c)

European AIFMs establishing a branch in Malta,

annually, upon the anniversary of the date on which they

commence business in Malta;

(d) European UCITS having their units marketed in

Malta annually, upon the anniversary of the date of the

commencement of such marketing in Malta;

(e)

European AIFs having their units marketed in Malta

annually, upon the anniversary of the date of the

commencement of such marketing in Malta;

(f)

AIFMs, whether established in an EU or EEA

Member State or in a third country wishing to market in Malta

units or shares of an AIF whether established in an EU or EEA

Member State other than Malta or in a third country, annually,

upon the anniversary of the date of the commencement of such

marketing in Malta.

(1) A person or body applying for a licence for Licence

investment services in terms of article 3 of the Act shall be classified classification.

at the discretion of the competent authority into one of the six

categories which determine the financial resources requirements of

licence holders, as follows

Category 1a

Licence holders authorised to receive and

transmit orders in relation to one or more

instrument and, or provide investment advice

and, or place instruments without a firm

commitment basis but not to hold or control

clients’ money or customers’ assets.

Category 1b

Licence holders authorised to receive and

transmit orders, and, or provide investment

advice in relation to one or more instrument

and, or place instruments without a firm

commitment basis solely for professional clients

and, or eligible counterparties but not to hold or

control clients’ money or customers’ assets.

Category 2

Licence holders authorised to provide any

investment service and to hold or control

clients’ money or customers’ assets, but not to

operate a multilateral trading facility or deal for

their own account or underwrite or place

instruments on a firm commitment basis.

Category 3

Licence holders authorised to provide any

Investment Service and to hold and control

clients’ money or customers’ assets.

Category 4a

Licence holders authorised to act as trustees or

custodians of collective investment schemes.

Category 4b

Licence holders authorised to act as custodians

to the following

(a) AIFs marketed in Malta in terms of

regulation 7 of the Investment Services Act

(Alternative Investment Fund Manager) (Third

Country) Regulations; or

(b) AIFs which have no redemption

rights exercisable during the five year period

from the date of initial investment and which

generally do not invest in assets that must be

held in custody in terms of the Investment

Services Rules.

(2) The competent authority shall set out in the licence the

nature of the activities which particular licence holders may carry out.

None of the fees established and due in terms of these

regulations shall be refundable. Nor shall they be prorated, other than

the first annual supervisory fee as established in regulation 4.

The Investment Services Act (Licence and Other Fees)

Regulations are hereby revoked.

2008. SCHEDULE

(Regulations 3, 4 and 5)

Fees

First Column

Second Column

Third Column

Application/

Supervisory Fee

Notification Fee

€

€

(a) Investment Services Licences

Category 1a

2,500

For revenue up

2,000

to €50,000

Further tranches

of €50,000 up to

350 per tranche

a maximum of

or part thereof

€1,000,000

Category 1b

3,000

For revenue up

2,750

to €50,000

Further tranches

of €50,000 up to

350 per tranche

a maximum of

or part thereof

€1,000,000

Category 2

5,000

For revenue up

4,500

to €250,000

Further tranches

of €250,000 up

400 per tranche

to a maximum

or part thereof

of €5,000,000

Category 3

7,000

For revenue up

6,000

to €250,000

Further tranches

of €250,000 up

400 per tranche

to a maximum

or part thereof

of €50,000,000

Category 4a

17,000

15,000

Category 4b

7,500

5,000

(b) Collective Investment Schemes which

fall within the scope of article 4 of the

Act; and which are authorized as UCITS

Schemes and non-UCITS Retail Schemes

2,500

3,000

Scheme sub-funds (per sub-fund)

Up to fifteen

sub-funds (per

sub-fund)

No annual

supervisory fee

will be payable

from the 16th

Scheme sub-fund

upwards

B B 30

(c) Collective Investment Schemes which

qualify as Professional Investor Funds and

Alternative Investment Funds in terms of

Investment Services Rules issued for this

purpose by the competent authority

2,000

2,000

Scheme sub-funds (per sub-fund)

1,000

Recognition Fees

(d) Persons

providing

administrative

services in terms of article 9A of the Act

3,000

1,500

(e) Private Schemes recognised in terms

of the Investment Services Act

(Recognition of Private Collective

Investment Schemes) Regulations

2,000

Notification Fees

(f) European

investment

firms

establishing a branch in Malta in terms of

regulation 3 of the European Passport

Rights for Investment Firms Regulations

(i) authorised

by

their

home

Member State or EEA State to

receive and transmit orders in

relation to one or more

instruments and, or provide

investment advice and, or place

instrument without a firm

commitment basis, in terms of

the Directive but are not

authorized to hold and control

clients’ money or customers’

assets

1,200

(ii) authorized by their home

Member State or EEA State to

provide any investment services

in terms of the Directive and to

hold and control clients’ money

or customers’ assets but not to

operate a multilateral trading

facility or to deal for their own

account or underwrite or place

instruments on a firm

commitment basis

1,000

3,000

(iii) authorized by their home

Member State or EEA State to

provide any investment services

in terms of the Directive, and to

hold and control clients’ money

or customers’ assets

1,650

3,600

(g) European

management

companies

establishing a branch in Malta in terms of

regulation 9 of the Investment Services Act

(UCITS Management Company Passport)

Regulations

1,250

4,000

(h) European Alternative Investment Fund

Managers establishing a branch in Malta in

terms of regulation 7 of the Investment

Services Act (Alternative Investment Fund

Manager) (Passport) Regulations

1,250

4,000

B B 31

(i) European UCITS marketing their units

in Malta in terms of regulation 8 of the

Investment Services Act (Marketing of

UCITS) Regulations

(i) UCITS Scheme

2,500

3,000

(ii) Per Scheme sub-funds (per sub-

fund)

Up to 15 Scheme

sub-funds (per

sub-fund).

No annual

supervisory fee

will be payable

from the 16th

Scheme sub-fund

upwards

(j) European Alternative Investment Funds

having their units marketed in Malta in

terms of regulation 5 of Investment

services Act (Marketing of Alternative

Investment Funds) Regulations

(i) European AIF

2,500

3,000

(ii) Per Scheme sub-funds (per sub-

fund)

Up to 15 Scheme

sub-funds (per

sub-fund).

No annual

supervision fee

will be payable

from the 16th

Scheme sub-fund

upwards

(k) Marketing of units or shares of an AIF

(whether established in an EU/EEA Member

State or in a third country) by an Alternative

Investment Fund Manager (whether

established in an EU/EEA Member State or

in a third country) pursuant to regulations 7

and 22 of the Investment Services Act

(Alternative Investment Fund Managers)

(Third Country) Regulations

(i) AIF

2,500

3,000

(ii) Per AIF sub-funds (per sub-fund)

Registration Fees

(l) Tied agents registered by the competent

authority in terms of regulation 5 of the

Appointment of Tied Agents Regulations

(i) where the tied agent is an

individual

350 and 250 per

(ii) where the tied agent is not an

individual

individual

employed by

such tied agent

and who is

directly involved

in the provision

of tied agent

activities.

€0.45