Schemes) (Amendment) Regulations, 2026

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 21,685, 10 ta’ Lulju, 2026 B 2141

L.N. 189 of 2026

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Custodians of Collective Investment

Schemes) (Amendment) Regulations, 2026

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 (Custodians of Collective Investment Schemes) scope.

(Amendment) Regulations, 2026 and these regulations shall be read

and construed as one with the Investment Services Act (Custodians of S.L. 370.32.

Collective Investment Schemes) Regulations, hereinafter referred to as

the "principal regulations".

(2) The scope of these regulations is to transpose the relevant

provisions of Articles 1(1), 1(10), 2(1) and 2(8) of Directive (EU)

2024/927 of the European Parliament and of the Council of 13 March

2024 amending Directives 2011/61/EU and 2009/65/EC as regards

delegation arrangements, liquidity risk management, supervisory

reporting, the provision of depositary and custody services and loan

origination by alternative investment funds.

The Arrangement of the principal regulations shall be Substitutes the

Arrangement of

substituted by the following new arrangement

the principal

regulations.

"Arrangement of Regulations

Regulations

Part 1

Preliminary

1-2

Part 2

General requirements applicable to

3-14

depositaries of collective investment

schemes

Part 3

Requirements applicable to depositaries of

15-25

UCITS

Part 4

Depositaries of AIFs

Part 4a

Requirements applicable to depositaries of

27-37

AIFs

Part 4b

Requirements applicable to depositaries of

38-44

specific AIFs

Requirements applicable to depositaries of

45-47".

collective investment schemes other than

UCITS and AIFs

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

regulations shall be substituted by the following new sub-regulation

"(1) The title of these regulations is the "Investment

Services Act (Depositaries of Collective Investment Schemes)

Regulations.".

The principal regulations shall be amended as follows

(a) the word "Custodians", wherever it occurs, shall be

substituted by the word "Depositaries";

(b) the word "custodians", wherever it occurs, shall be

substituted by the word "depositaries";

(c) the word "custodian", wherever it occurs, shall be

substituted by the word "depositary";

(d) the words "custody agreement", wherever they occur,

shall be substituted by the word "depositary agreement";

(e) the word "Custodian’s", wherever it occurs, shall be

substituted by the word "Depositary’s";

(f) the word "custodian’s", wherever it occurs, shall be

substituted by the word "depositary’s".

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

regulations shall be amended as follows

(a) the definition "Category 2 Investment Services

Licence" shall be substituted by the following new definition

""central securities depository" or "CSD" shall have

the same meaning as assigned to it in point (1) of Article

2(1) of Regulation (EU) No 909/2014;";

(b) immediately after the definition "the competent

authority" there shall be added the following new definitions

" "CRD" means Directive 2013/36/EU of the

European Parliament and of the Council of 26 June 2013 on

access to the activity of credit institutions, amending

Directive 2002/87/EC and repealing Directives 2006/48/EC

and 2006/49/EC, as amended from time to time, and

includes any binding legal instruments, guidelines and

other measures that have been or may be issued thereunder;

"CRR" means Regulation (EU) No 575/2013 of the

European Parliament and of the Council of 26 June 2013 on

prudential requirements for credit institutions and

amending Regulation (EU) No 648/2012, as amended from

time to time, and includes any binding legal instruments,

guidelines and other measures that have been or may be

issued thereunder;

"depositary" means an investment services licence

holder that is licensed to provide depositary services to any

collective investment scheme;

"depositary functions" means the functions which

shall be carried out by a depositary in accordance with

these regulations;

"depositary lite" means a depositary that is licensed to

provide depositary services limitedly to collective

investment schemes as referred to in regulation 4(3);

"depositary services" means the investment services

established in item 5(c) of the First Schedule of the Act;";

(c) the definitions "custodian" and "Directive 2013/36/

EU" shall be deleted;

(d) immediately after the definition "Directive 2006/73/

EC" there shall be added the following new definitions

" "European depositary" means an entity established

in a Member State other than Malta that is subject to the

provisions of Article 21 of the AIFMD, as transposed in

national law;

"European regulatory authority" means the body or

bodies designated by a Member State or an EEA State other

than Malta in accordance with Article 44 of the AIFMD to

carry out the duties provided for under the different

provisions of the said Directive;

"Extraordinary Investor" means an investor which

qualifies as an extraordinary investor in accordance with the

Investment Services Rules;";

(e) immediately after the definition "financial

instrument" there shall be added the following new definitions

" "fund manager" means the entity responsible for the

discretionary investment management of the assets of a

collective investment scheme and it shall include an AIFM

and a UCITS management company;

"home Member State" shall have the same meaning

as assigned to it in paragraph (p) of Article 4(1) of the

AIFMD with respect to an AIF, and that assigned to it in

paragraph (q) of Article 4(1) of the AIFMD with respect to

an AIFM;

"IFD" means Directive (EU) 2019/2034 of the

European Parliament and of the Council of 27 November

2019 on the prudential supervision of investment firms and

amending Directives 2002/87/EC, 2009/65/EC, 2011/61/

EU, 2013/36/EU, 2014/59/EU and 2014/65/EU, as

amended from time to time, and includes any binding legal

instruments, guidelines and other measures that have been

or may be issued thereunder;

"IFR" means Regulation (EU) 2019/2033 of the

European Parliament and of the Council of 27 November

2019 on the prudential requirements of investment firms

and amending Regulations (EU) No 1093/2010, (EU) No

575/2013, (EU) No 600/2014 and (EU) No 806/2014, as

amended from time to time, and includes any binding legal

instruments, guidelines and other measures that have been

or may be issued thereunder;

"investment services licence holder" means a person

licensed in accordance with article 6 of the Act to provide

any of the investment services established in the First

Schedule to the Act;";

(f) immediately after the definition "management body"

there shall be added the following new definitions

" "Member State" means a Member State of the

European Union or an EEA State;

"MIFID" means 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 (recast), as

amended from time to time, and includes any binding legal

instruments, guidelines and other measures that have been

or may be issued thereunder;

"Professional Investor Fund" or "PIF" means a

collective investment scheme which qualifies as a

professional investor fund in accordance with the

Investment Services Rules;

"Qualifying Investor" means an investor which

qualifies as a qualifying investor in accordance with the

Investment Services Rules;";

(g) immediately after the definition "Regulation (EU)

No. 231/2013" there shall be added the following new definition

"Regulation (EU) No 909/2014" means Regulation

(EU) No 909/2014 of the European Parliament and of the

Council of 23 July 2014 on improving securities settlement

in the European Union and on central securities

depositories and amending Directives 98/26/EC and 2014/

65/EU and Regulation (EU) No 236/2012, as amended

from time to time, and includes any binding legal

instruments, guidelines and other measures that have been

or may be issued thereunder;".

Regulation 4 of the principal regulations shall be Substitutes

regulation 4 of

substituted by the following new regulation

the principal

regulations.

" Requirement

4. (1) An entity shall be licensed under the Act

to provide depositary services to a collective investment

scheme.

(2) An entity may be licensed under the Act to

provide depositary services to any type of collective

investment scheme.

(3) Without prejudice to sub-regulation (2), an

entity may be licensed under the Act to provide

depositary services limitedly to

(a) AIFs marketed in Malta in accordance

with regulation 7 of the Investment Services Act

(Alternative Investment Fund Manager) (Third

Country) Regulations;

(b) AIFs which have no redemption rights

exercisable during the five (5) year period from the

date of initial investment, and which generally do

not invest in assets that shall be held in custody in

terms of the Investment Services Rules; and, or

(c) Professional Investor Funds targeting

Qualifying Investors and Extraordinary Investors.".

In the marginal note of regulation 8 the word "custody"

shall be substituted by the word "appointment".

Regulation 17 of the principal regulations shall be amended

(a)

sub-regulation (2) thereof shall be amended as

(i) in paragraph (b) thereof the words "with

Directive 2013/36/EU" shall be substituted by the words

"with the CRD";

(ii) in paragraph (d) thereof the words "with

Directive 2013/36/EU" shall be substituted by the words

"with the CRD";

(iii) paragraph (e) thereof shall be substituted by the

following new paragraph

"(e) an investment firm or branch of an

investment firm established in a Member State or

EEA State other than Malta subject to capital

adequacy requirements in accordance with the IFD

and the IFR including capital requirements for

operational risks and authorised in accordance with

MIFID and which also provides the ancillary service

of safe-keeping and administration of financial

instruments for the account of clients, including

custody and related services such as cash or collateral

management in accordance with point (1) of Section

B of Annex I of MIFID

Provided that such investment firms shall

in any case have own funds not less than the amount

of initial capital referred to in Article 9(1) of the IFD,

as transposed in the Investment Services Rules

Provided further that the entity referred to

in this paragraph shall be required to have a minimum

of one (1) director who is resident in Malta on its

board of directors.";

(b)

in sub-regulation (3) thereof the words "a Category

4a Investment Services Licence issued in terms of the Act." shall

be substituted by the words "a licence issued in accordance with

article 6 of the Act to provide depositary services.";

(c) in paragraph (f) of sub-regulation (4) thereof the

words "custodian functions" shall be substituted by the words

"depositary functions";

(d)

sub-regulation (5) thereof shall be deleted.

In sub-regulation (4) of regulation 18 of the principal Amends

regulations the words "custodian tasks" shall be substituted by the regulation

the principal

words "depositary functions".

regulations.

In sub-paragraph (ii) of paragraph (b) of sub-regulation (2) Amends

of regulation 20 of the principal regulations the words "in accordance regulation

the principal

with Directive 2013/36/EU;" shall be substituted by the words "in regulations.

accordance with the CRD;".

In sub-regulation (1) of regulation 22 of the principal Amends

regulations the words "the custody function has" shall be substituted regulation

the principal

by the words "its custody tasks have".

regulations.

Regulation 23 of the principal regulations shall be amended Amends

regulation 23 of

as follows

the principal

regulations.

(a) in paragraph (c) of sub-regulation (2) thereof the

words "its tasks, and continues" shall be substituted by the words

"its tasks, except where such third party is a central securities

depository acting in the capacity of an investor CSD as defined

in the delegated act adopted pursuant to Articles 29(3) and

48(10) of Regulation (EU) No 909/2014, and continues";

(b) sub-regulation (6) thereof shall be substituted by the

following new sub-regulation

"(6) For the purposes of this regulation, the

provision of services by a central securities depository

acting in the capacity of an issuer CSD as defined in the

delegated act adopted pursuant to Articles 29(3) and 48(10)

of Regulation (EU) No 909/2014 shall not be considered a

delegation of the depositary’s depositary functions, and the

provision of services by a central securities depository

acting in the capacity of an investor CSD as defined in such

delegated act shall be considered a delegation of the

depositary’s depositary functions.".

Regulation 26 shall be substituted by the following new

A depositary shall be licensed under the Act

to provide depositary services to any collective

investment scheme, including AIFs or limitedly to

collective investment schemes as referred to in

regulation 4(3), including those AIFs referred to in

paragraphs (a) and (b) thereof.

14. The heading of Part 4a of the principal regulations shall be

substituted by the following new heading

"Part 4a

Requirements applicable to depositaries of AIFs".

15. Regulation 27 of the principal regulations shall be amended

(a)

sub-regulation (1) thereof shall be amended as

(i) the words "custodians in possession of a

Category 4a Investment Services Licence which provide"

shall be substituted by the words "depositaries which

provide";

(ii) in paragraph (a) thereof the words "AIFM; or"

shall be substituted by the words "AIFM; and, or";

(b) in sub-regulation (2) thereof, the words "A Category

4a Investment Services Licence Holder shall" shall be

substituted by the words "A depositary shall".

16. Regulation 29 of the principal regulations shall be amended

(a) in the second proviso to sub-regulation (1) thereof the

words "Directive 2013/36/EU" shall be substituted by the words

"the CRD";

(b)

sub-regulation (2) thereof shall be amended as

(i) the words "to hold a Category 4a Investment

Services Licence issued in terms of the Act and to provide"

shall be substituted by the words "to provide";

(ii)

in paragraph (a) thereof the words "Directive

2013/36/EU" shall be substituted by the words "the CRD";

(iii) in paragraph (d) thereof the words "Directive

2013/36/EU" shall be substituted by the words "the CRD";

(iv) paragraph (f) thereof shall be substituted by the

following new paragraph

"(f) an investment firm or branch of an

investment firm established in another Member State

or EEA State subject to capital adequacy

requirements in accordance with the IFD and the IFR

including capital requirements for operational risks

and authorised in accordance with MIFID and which

also provides the ancillary service of safe-keeping

and administration of financial instruments for the

account of clients in accordance with point (1) of

Section B of Annex I of MIFID

Provided that such investment firms shall

in any case have own funds not less than the amount

of initial capital referred to in Article 9 of the IFD, as

transposed in the Investment Services Rules.".

17. Immediately after regulation 29, as amended, there shall be Adds a new

regulation to the

added the following new regulation

principal

regulations.

(1) Notwithstanding the provisions of

regulation 29(1) and any other applicable law, the

competent authority may allow a credit institution that

is authorised in accordance with the CRD, as transposed

in national law and established in a Member State other

than Malta, to be appointed to provide depositary

services to a Maltese AIF, provided that the following

conditions are fulfilled

(a) the competent authority has received a

reasoned request from the AIFM to allow the

appointment of a European depositary established

in another Member State and that request

demonstrates the lack of depositary services in

Malta that are able to meet effectively the needs of

the AIF having regard to its investment strategy;

and

(b) the aggregate amount in the national

depositary market of Malta of assets entrusted for

safe-keeping, as referred to in regulation 32, on

behalf of AIFs authorised or registered under the

applicable national law in accordance with Article

4(1)(k)(i) of the AIFMD, as transposed in national

law, and managed by an EU AIFM does not

exceed fifty billion euro (€50,000,000,000) or the

equivalent in any other currency

Provided that for the purposes of paragraph

(b), assets entrusted for safe-keeping by depositaries

acting under regulation 7(1)(a) of the Investment

Services Act (AIFM Third Country) Regulations, as

well as the own assets of depositaries, shall not be taken

into account for the purpose of determining whether the

conditions established in paragraph (b) is met.

(2) Notwithstanding the conditions established

in sub-regulation (1) being met, the competent authority

shall allow the appointment of a European depositary

established in a Member State other than Malta only

after carrying out a case-by-case assessment of the lack

of relevant depositary services in Malta having regard to

the investment strategy of the AIF.

(3) Where the competent authority allows the

appointment of a European depositary, it shall inform

ESMA thereof.

(4) The provisions of this regulation shall be

without prejudice to the application of the provisions of

Article 21, other than Article 21(5)(a) of the AIFMD, as

transposed in these regulations and the Investment

Services Rules.

(5) Without prejudice to the powers and

functions of the competent authority under the Act and

any regulations made and Rules issued thereunder,

where Malta is the home Member State of an AIF or,

where an AIF is unregulated, the home Member State of

the AIFM managing such AIF, and a European

depositary is appointed in accordance with the

provisions of this regulation in relation to such AIF, the

competent authority shall, where it has reasonable

grounds to suspect that acts contrary to the provisions of

the AIFMD, as transposed in national law, are being or

have been carried out by such European depositary,

promptly notify ESMA and the European regulatory

authority of the European depositary concerned thereof

in as specific a manner as possible.

(6) Where a depositary established in Malta has

been appointed in accordance with Article 21(5a) of the

AIFMD, as transposed in national law, in relation to an

AIF having as a home Member State a Member State

other than Malta, or an AIF, being unregulated, that is

managed by an AIFM having as a home Member State a

Member State other than Malta, and the European

regulatory authority of the AIFM managing such AIF

has notified the competent authority in accordance with

Article 50(5g) of the AIFMD, as transposed in national

law, the competent authority shall take appropriate

action and shall notify ESMA and such European

regulatory authority of the outcome of the action

taken.".

18. In paragraph (b) of sub-regulation (2) of regulation 31 of Amends

the principal regulations the words "Directive 2013/36/EU" shall be regulation

substituted by the words "the CRD".

19. Regulation 34 of the principal regulations shall be amended Amends

(a) in paragraph (c) of sub-regulation (2) thereof the

words "its tasks, and keeps" shall be substituted by the words "its

tasks, except where that third party is a central securities

depository acting in the capacity of an investor CSD as defined

in the delegated act adopted pursuant to Articles 29(3) and

48(10) of Regulation (EU) No 909/2014, and keeps";

(b) sub-regulation (4) thereof shall be substituted by the

following new sub-regulation

"(4) For the purposes of Article 21 of the AIFMD, as

transposed in these regulations and the Investment Services

Rules, the provision of services by a central securities

depository acting in the capacity of an issuer CSD as

defined in the delegated act adopted pursuant to Articles

29(3) and 48(10) of Regulation (EU) No 909/2014 shall not

be considered a delegation of the depositary’s depositary

functions, and the provision of services by a central

securities depository acting in the capacity of an investor

CSD as defined in such delegated act shall be considered a

delegation of the depositary’s depositary functions.".

20. Regulation 37 of the principal regulations shall be

substituted by the following new regulation

(1) A depositary shall make available to

obligations of the

the competent authority and, where the AIF and, or the

AIFM are established in a Member State other than

Malta, to the European regulatory authorities of such

AIF and, or AIFM, on request, any information that it

would have obtained while performing its duties.

(2) Where an AIF and, or an AIFM are

established in a Member State other than Malta and a

depositary has been appointed in accordance with

Article 21(5a) of the AIFMD, as transposed in national

law, in relation to such AIF, the competent authority

shall share, without delay, with the European regulatory

authorities of such AIF and, or AIFM any information

relevant for the exercise of their supervisory powers.

(3) Where an AIF and, or an AIFM are

established in Malta and a European depositary has been

appointed in accordance with regulation 29A in relation

to such AIF, the competent authority shall share, without

delay, with the European regulatory authority of such

European depositary any information relevant for the

exercise of the supervisory powers of such European

regulatory authority.".

21. The heading of Part 4b of the principal regulations shall be

substituted by the following new heading

"Part 4b

Requirements applicable to depositaries of specific AIFs".

22. Regulation 38 shall be amended as follows

(a)

sub-regulation (1) thereof shall be amended as

follows

(i) the words "custodians in possession of a

Category 4b Investment Services Licence and which

provide" shall be substituted by the words "depositaries lite

which provide";

(ii) in paragraph (a) thereof the words "Rules; or"

shall be substituted by the words "Rules; and, or";

(b) in sub-regulation (2) thereof the words "A Category

4b Investment Services Licence Holders shall" shall be

substituted by the words "A depositary lite as referred to in sub-

regulation (1) shall".

23. In regulation 39 of the principal regulations the words "a Amends

custodian in possession of either a Category 4a or a Category 4b regulation

the principal

Investment Services Licence is appointed to act as custodian" shall be regulations.

substituted by the words "a depositary or a depositary lite is appointed

to provide depositary services".

24. Regulation 40 of the principal regulations shall be amended Amends

regulation 40 of

as follows

the principal

regulations.

(a) the words "to apply for and obtain a Category 4b

Investment Services Licence:" shall be substituted by the words

"to provide depositary services to AIFs as referred to in

regulation 38(1):";

(b) paragraph (a) thereof shall be substituted by the

following new paragraph

"(a) entities, other than UCITS management

companies and AIFMs, that are licensed under the Act to

provide, or hold themselves out as providing, any of the

investment services stipulated in the First Schedule to the

Act, other than those stipulated in items 3, 5, 7, 9 and 11, in

or from Malta and to hold or control clients’ money or

customers’ assets;".

25. In regulation 41 of the principal regulations the words "A Amends

Category 4b Investment Services Licence Holder" shall be substituted regulation

the principal

by the words "A depositary lite".

regulations.

26. In regulation 42 of the principal regulations the words "A Amends

Category 4b Investment Services Licence Holder", wherever they regulation

the principal

occur, shall be substituted by the words "A depositary lite".

regulations.

27. Regulation 43 of the principal regulations shall be amended Amends

regulation 43 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof the words "A 4b

Investment Services Licence Holder" shall be substituted by the

words "A depositary lite";

(b) in sub-regulation (2) thereof the words "A Category

4b Investment Services Licence Holder" shall be substituted by

the words "A depositary lite".

28. In sub-regulation (1) of regulation 44 of the principal

regulations the words "A 4b Investment Services Licence Holder"

shall be substituted by the words "A depositary lite".

29. Regulation 46 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof the words "shall appoint

as custodian an entity which is in possession of a Category 4a

Investment Services Licence." shall be substituted by the words

"shall appoint a depositary to provide depositary services to such

scheme.";

(b) in sub-regulation (2) thereof the words "may appoint

as custodian an entity which is in possession of a Category 4a or

Category 4b Investment Services Licence:" shall be substituted

by the words "may appoint a depositary or a depositary lite to

provide depositary services to such scheme:".

30. Regulation 47 of the principal regulations shall be amended

as follows

(a) in sub-regulation (2) thereof the words "a

Professional Investor Funds appoints a custodian holding a

Category 4a Investment Services Licence," shall be substituted

by the words "a Professional Investor Fund appoints a

depositary,";

(b)

sub-regulation (3) thereof shall be amended as

follows

(i) the words "to hold a Category 4a Investment

Services Licence issued in terms of the Act and to provide"

shall be substituted by the words "to provide";

(ii) in paragraph (a) thereof the words "Directive

2013/36/EU" shall be substituted by the words "the CRD";

(iii) in paragraph (d) thereof the words "Directive

2013/36/EU" shall be substituted by the words "the CRD";

(iv) paragraph (f) thereof shall be substituted by the

following new paragraph

"(f) an investment firm in Malta or a branch of

an investment firm established in a Member State or

EEA State other than Malta, subject to capital

adequacy requirements in accordance with the IFD

and the IFR including capital requirements for

operational risks and authorised in accordance with

MIFID and which also provides the ancillary service

of safe-keeping and administration of financial

instruments for the account of clients, including

custody and related services such as cash or collateral

management in accordance with point (1) of Section

B of Annex I of MIFID

Provided that such investment firms shall

in any case have own funds not less than the amount

of initial capital referred to in Article 9(1) of the IFD,

as transposed in the Investment Services Rules.".

31. In regulation 48 of the principal regulations the words "A Amends

Category 4a Investment Services Licence Holder" shall be substituted regulation

the principal

by the words "A depositary".

regulations.

32. In regulation 49 of the principal regulations the words "A Amends

Category 4a Investment Services Licence Holder" shall be substituted regulation

the principal

by the words "A depositary".

regulations.

33. In regulation 50 of the principal regulations the words "or Amends

more entities in possession of a Category 4a or Category 4b regulation

the principal

Investment Services Licence" shall be substituted by the words "or regulations.

more entities being depositaries or depositaries lite".

€0.72