Schemes) (Amendment) Regulations, 2018

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 19,957, 6 ta’ Marzu, 2018

L.N. 75 of 2018

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Prospectus of Collective Investment

Schemes) (Amendment) Regulations, 2018

IN EXERCISE of the powers conferred by article 12 of the

Investment Services Act, the Minister responsible for the regulation of

financial services, acting on the advice of the Malta Financial Services

Authority as the competent authority for the purposes of the Act, has

made the following regulations

The title of these regulations is the Investment Services Act Citation.

(Prospectus of Collective Investment Schemes) (Amendment)

Regulations, 2018 and these regulations shall be read and construed as

one with the Investment Services Act (Prospectus of Collective S.L. 370.04.

Investment Schemes) Regulations, hereinafter referred to as "the

principal regulations".

Regulation 1 of the principal regulations shall be amended Amends

regulation 1 of

as follows

the principal

regulations.

(a) sub-regulation (1) thereof shall be renumbered as

regulation 1; and

(b)

sub-regulation (2) thereof shall be deleted.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a) immediately after the definition "Non-European

based schemes", there shall be added the following new

definition

" "non-material changes" means those changes falling

within the Schedule when made to a prospectus;"; and

(b) immediately after the definition "offer to the public",

there shall be added the following new definition

“ "Rules" means Investment Services Rules and

Conduct of Business Rules issued by the competent

authority in terms of the Act;".

Sub-regulation (3) of regulation 3 of the principal

regulations shall be amended as follows

(a) in the proviso thereof, for the words "as it may deem

appropriate.", there shall be substituted the words "as it may

deem appropriate:"; and

(b) immediately following the proviso thereof, there shall

be added the following second proviso

Provided further that with effect from the 6th March,

2018 a Malta based scheme, other than a Malta based closed-

ended scheme falling within the scope of Article 1 of the

Directive, shall be exempt from obtaining the approval of the

competent authority with respect to any non-material changes to

its prospectus falling within the Schedule to these regulations,

made following the issue of the licence under article 4 of the Act.

Such exemption shall be automatically operative, but its

applicability shall be subject to

(i) a notification containing all the relevant

changes made in writing to the competent authority

and to investors within one week from the issue of the

revised prospectus;

(ii) a notification in writing submitted to the

competent authority confirming that all investors

have been duly informed as indicated in sub-

paragraph (i), within one week from the issue of the

revised prospectus; and

(iii) the provision to the competent authority

of an updated copy of the prospectus within one week

from the issue of the revised prospectus.".

In sub-regulation (2) of regulation 4 of the principal

regulations, for the words "approval of the prospectus within ten (10)

working days", there shall be substituted the words, "approval of the

prospectus within ten working days, where such approval is required

in terms of regulation 3(3)".

Regulation 12 of the principal regulations shall be amended

as follows

(a) for the words, "in terms of guidelines issued for this

purpose", there shall be substituted the words, "in terms of Rules

issued for this purpose";

(b) for the words, "establish by the said guidelines,",

there shall be substituted the words, "establish by the said

Rules,"; and

(c) in the marginal note thereto, for the words,

"Applicable guidelines to professional investor funds.", there

shall be substituted the words, "Applicable Rules to professional

investor funds.".

In sub-regulation (1) of regulation 15 of the principal Amends

regulations, for the words, "regulations or guidelines issued regulation

the principal

thereunder", there shall be substituted the words, "regulations or rules regulations.

issued thereunder".

Immediately after regulation 17 of the principal Adds Schedule

to the principal

regulations, there shall be added the following new Schedule

regulations.

"SCHEDULE

(Regulation 2)

Non-material changes

1. Extensions to the initial offering period not exceeding a period

of three months provided that the fund has no investors and

provided that such extensions shall not successively amount to

a period of more than twelve months.

2. A cumulative increase in fees not exceeding 10% of approved

fees, provided that the Malta based scheme shall grant

investors the right to redeem their holdings within a period of

thirty days without incurring any penalties.

3. A change in the registered office of a service provider.

4. A change in the registered office of the scheme.

5. Amendments strictly reflecting changes in International

Financial Reporting Standards.

6. Changes made in satisfaction of any obligations arising in

terms of Exchange of Information (United States of America) S.L. 123.156.

(FATCA) Order.

7. Appointment of parties not subject to any prior approval by

the MFSA, including the appointment of bankers, brokers,

other than prime brokers, of advisors to the manager and legal

advisors.

8. Correction of typographical errors in the Prospectus or

offering document.".

€0.18