Regulations, 2023

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 21,166, 15 ta’ Diċembru, 2023

L.N. 290 of 2023

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Exemption) (Amendment)

Regulations, 2023

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, has made the following regulations:-

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

Services Act (Exemption) (Amendment) Regulations, 2023 and these scope.

regulations shall be read and construed as one with the Investment

Services Act (Exemption) Regulations, hereinafter referred to as "the S.L. 370.02.

principal regulations".

(2) The scope of these regulations is to exempt Notified

Professional Investor Funds from the requirement for a licence for

investment services in terms of the Investment Services Act and to Cap. 370.

provide for matters consequential or ancillary thereto, and to partly

transpose Article 2(1) of ‘Directive 2014/65/EU of the European

Parliament and of the Council of 15 May 2014 on markets in financial

instruments and amending Directive 2002/92/EC and Directive 2011/

61/EU’ and to implement Article 4 of the ‘Commission Delegated

Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive

2014/65/EU of the European Parliament and of the Council as regards

organizational requirements and operating conditions for investment

firms and defined terms for the purposes of that Directive’.

Sub-regulation (1) of regulation 2 of the principal Amends

regulation 2 of

regulations shall be amended as follows

the principal

regulations.

(a) immediately after the definition "List of Notified

AIFs", there shall be added the following new definition

""List of Notified PIFs" shall be construed as a

reference to the List of Notified PIFs which is held by

the competent authority on its website in terms of the

Investment Services Act (Notified CISs) Regulations;";

and

(b) immediately after the definition "professional

investor", there shall be added the following new definition

"""professional investor fund"" or ""PIF"" means a

collective investment scheme which qualifies as a

professional investor fund in terms of the Investment

Services Rules;".

Regulation 3 of the principal regulations shall be amended

(a) immediately after sub-paragraph (i) of paragraph (h)

of sub-regulation (1) thereof, there shall be added the following

new sub-paragraph

"(ia) acting as trustee or custodian in terms of

paragraph 5(c) of the First Schedule to the Act, in

relation to a collective investment scheme established

as a professional investor fund that has been included

by the competent authority on the List of Notified PIFs

in terms of the Investment Services Act (Notified CISs)

Regulations, where the competent authority is satisfied

that such person is of sufficient standing and repute;

or";

(b) immediately after sub-paragraph (ii) of paragraph (h)

of sub-regulation (1) thereof, there shall be added the following

new sub-paragraph

"(iia) providing the services of management of

investments and, or investment advice, in terms of

paragraphs 4 and, or 6 of the First Schedule to the Act

to a collective investment scheme established as a

professional investor fund that has been included by the

competent authority on the List of Notified PIFs in

terms of the Investment Services Act (Notified CISs)

Regulations, where the competent authority is satisfied

that such person is of sufficient standing and repute;

or";

(c) in sub-paragraph (iv) of paragraph (h) of sub-

regulation (1) thereof, immediately after the words "in terms of

the Investment Services Rules," there shall be added the words

"or a collective investment scheme which has been included by

the Competent Authority in the List of Notified AIFs in terms of

the Investment Services Act (Notified CISs) Regulations,";

(d) the proviso to paragraph (m) of sub-regulation (1)

thereof shall be substituted by the following new proviso

"Provided that for the purposes of this

paragraph, an investment service shall be deemed to be

provided in an incidental manner in the course of a

professional activity where the following conditions are

satisfied

(i) a close and factual connection exists

between the professional activity and the provision of

the investment service to the same client, such that

the investment service can be regarded as accessory

to the main professional activity;

(ii) the provision of investment services to the

clients of the main professional activity does not aim

to provide a systematic source of income to the

person providing the professional activity; and

(iii) the person providing the professional

activity does not market or otherwise promote his

ability to provide investment services, except where

these are disclosed to clients as being accessory to the

main professional activity.";

(e) sub-paragraph (d) of the first proviso of paragraph (p)

of sub-regulation (1) thereof shall be substituted by the following

new sub-paragraph

"d. those persons notify annually the competent

authority that they make use of this exemption and upon

request report to the competent authority the basis on which

they consider that their activity under sub-paragraphs (i)

and (ii) is ancillary to their main business:";

(f) in sub-regulation (2) thereof, for the words

"paragraphs (f), (g), (h), (l), (q), (t) and (z)" there shall be

substituted the words "paragraphs (h), (l), (q) and (z)".

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

regulation 5 of

regulations shall be amended as follows

the principal

regulations.

(a) in paragraph (d) thereof, for the words "Investment

Services Act (List of Notified AIFs) Regulations;", there shall be

substituted the words "Investment Services Act (Notified CISs) S.L. 370.34.

Regulations;";

(b)

immediately after paragraph (d) thereof, there shall

be added the following new paragraph

"(da) a scheme established as a professional

investor fund that has been included by the competent

authority on the List of Notified PIFs in terms of the

Investment Services Act (Notified CISs) Regulations;".

In paragraph (c) of sub-regulation (1) of regulation 6 of the

principal regulations, for the words "in terms of the Investment

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

Investment Services Rules;" and immediately thereafter there shall be

added the following new paragraph

"(d) a collective investment scheme established

as a professional investor fund that has been included

by the competent authority on the List of Notified PIFs

in terms of the Investment Services Act (Notified CISs)

Regulations.".

€0.18