INVESTMENT SERVICES ACT (FEES) REGULATIONS *

SUBSIDIARY LEGISLATION 370.03

INVESTMENT SERVICES ACT (FEES)

REGULATIONS *

1st January, 2014 †

LEGAL NOTICE 9 of 2014, as amended by Legal Notices 217, 264, 371

of 2016, 20 of 2022 and 291 of 2023.

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

Act (Fees) Regulations.

(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 and Other Fees) Regulations, 2008 prior to the coming

into force of these regulations.

Amended by

L.N. 217 of 2016;

(Regulations 3, 4 and 5)

L.N. 371 of 2016.

Substituted by

L.N. 20 of 2022.

Amended by

L.N. 291 of 2023.

Fees

Second

First Column

Third Column

Column

Application/

Supervisory Fee / Renewal of

Notification

Notification Fee

Fee

(a) Investment Services, the

€

€

highest fee applies based on

the services provided

Licence holders authorised

2,500

For revenue

2,000

to receive and transmit

up to €50,000

orders in relation to one or

Further

more instrument and, or

tranches of 350 per tranche

provide investment advice

€50,000 up to or part thereof

and, or place instruments

a maximum

without a firm commitment

of €1,000,000

basis but not to hold or

control clients’ money or

customers’ assets.

Licence holders authorised

3,000

For revenue

2,750

to receive and transmit

up to €50,000

orders, and, or provide

Further

investment advice in relation

tranches of 350 per tranche

to one or more instrument

€50,000 up to or part thereof

and, or place instruments

a maximum

without a firm commitment

of €1,000,000

basis solely for professional

clients and, or eligible

counterparties but not to

hold or control clients’

money or customers’ assets.

Licence holders authorised

5,000

For revenue

4,500

to provide any investment

up to

service and to hold or

€250,000

control clients’ money or

Further

400 per tranche

customers’ assets, but not to

tranches of

or part thereof

operate a multilateral

€250,000 up

trading facility or deal for

to a

their own account or

maximum of

underwrite or place

€5,000,000

instruments on a firm

commitment basis.

Licence holders authorised

7,000

For revenue

6,000

to provide any Investment

up to

Service and to hold and

€250,000

control clients’ money or

Further

400 per tranche

customers’ assets.

tranches of

or part thereof

€250,000 up

to a

maximum of

€50,000,000

(b) Custodians

Licence holders authorised to act as

trustees or custodians of collective

17,000

15,000

investment schemes.

Licence holders authorised to act as

7,500

5,000

custodians to the following

(i) AIFs marketed in Malta in

terms of regulation 7 of

the Investment Services

Act (Alternative

Investment Fund

Manager) (Third

Country) Regulations; or

(ii) 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.

(c) Collective Investment

2,500

3,000

Schemes which fall within

the scope of article 4 of the

Act; and which are authorized

as UCITS Schemes, non-

UCITS Retail Schemes and

Retail AIFs

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

(d) Collective Investment

2,000

2,000

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

Scheme sub-funds (per sub-

1,000

fund)

Recognition Fees

(e) Persons providing

3,000

1,500

administrative services in

terms of article 9A of the Act

(f)

Private Schemes recognised

2,000

in terms of the Investment

Services Act (Recognition of

Private Collective

Investment Schemes)

Regulations

Notification Fees

(g) 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

1,200

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

(ii) authorized by their home

1,000

3,000

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

(iii) authorized by their home

1,650

3,600

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

(h) European management

1,250

4,000

companies establishing a

branch in Malta in terms of

regulation 9 of the Investment

Services Act (UCITS

Management Company

Passport) Regulations

(i)

European Alternative

1,250

4,000

Investment Fund Managers

establishing a branch in Malta

in terms of regulation 7 of the

Investment Services Act

(Alternative Investment Fund

Manager) (Passport)

Regulations

(j)

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

(k) 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

(l)

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

(m) 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

(ii) where the tied agent is

350 and 250 per

not an individual

individual

employed by

such tied agent

and who is

directly

involved in the

provision of tied

agent activities.

(n) Notification by the AIFM on

behalf of the Notified AIF

-

For each Notified AIF

2,000

2,000

Notified AIF sub-funds

1,000

(per sub-fund)

(o) Notification

-

For a PIF to be included in the

2,000

2,000

List of Notified PIFs

-

For a sub-fund of a Notified

1,000

PIF to be included in the

List of Notified PIFs

(1)

In these regulations, unless the context otherwise

requires -

"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

re gu lat io n 2 o f th e In ve stm ent S ervices Act ( Ma rketing 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;

*These regulations have been repealed by Legal Notice 370 of 2024.

†see regulation 1(2).

"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;

"EuSEF" refers to European social entrepreneurship funds and

shall have the same meaning as that assigned to it by Regulation

(EU) No 346/2013 of the European Parliament and of the Council

of 17 April 2013 on European social entrepreneurship funds;

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

by regulation 2 of the Investment Services Act (Marketing of

UCITS) Regulations;

"EuVECA" refers to European venture capital funds and shall

have the same meaning as that assigned to it by Regulation (EU)

345/2013 of the European Parliament and of the Council of 17

April 2013 on European venture capital funds;

"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;

"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;

"Notified AIF" means an AIF which has been notified to the

competent authority by an AIFM in terms of the Investment

Services Act (Notified CISs) Regulations;

"Notified PIF" means a PIF which has been notified to the

competent authority for inclusion in the List of Notified PIFs and is

included in the List of Notified PIFs held by the competent authority in

terms of the Investment Services Act (Notified CISs) 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;

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

scheme which qualifies as a professional investor fund in terms of the

Investment Services Rules;

"retail AIF" means an AIF which is marketed exclusively to

retail clients as defined herein;

"retail client" means a client who is not a professional client as

defined herein;

"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

re gu l a t io n 2 o f t h e I nv e s t m e n t S e r v ic e s A c t ( Ti e d A ge nt s )

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,

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

recognition, registration, authorisation or upon submission of a

notification, irrespective of whether the application or notification

is eventually accepted or not, pay to the competent authority the

application fee or notification fee as the case may be, established in

the Second Column of the Schedule.

(1) There shall be paid to the competent authority the

following annual supervisory fees, as applicable

(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.

(2) There shall be paid to the competent authority by the AIFM

upon the anniversary date of inclusion of an AIF in the List of

Notified AIFs in terms of the Investment Services Act (Notified

CISs) Regulations, a renewal of notification fee established in the

Third Column of the Schedule

Provided that the first annual renewal notification fee shall

be payable by the AIFM on behalf of the Notified AIF immediately

upon inclusion of the AIF in the List of Notified AIFs.

INVESTMENT SERVICES ACT (FEES)

(3)

There shall be paid to the competent authority by the

Notified PIF upon the anniversary date of inclusion of a PIF in the List

of Notified PIFs in terms of the Investment Services Act (Notified

CISs) Regulations, a renewal of the notification fee established in the

Third Column of the Schedule

Provided that the first annual renewal notification fee shall be

payable by the Notified PIF immediately upon inclusion of the PIF in

the List of Notified PIFs.

(1)

There shall be paid to the competent authority by

(a) any European investment firm establishing a branch in

Malta in terms of regulation 3 of the European

Passport 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 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

Provided that EuVECA funds and EuSEF funds as

defined in regulation 2(1) shall not be required to pay

to the competent authority 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

Provided that EuVECA funds and EuSEF funds as

defined in regulation 2(1) shall not be required to pay

to the competent authority the annual supervisory fees

established in the Third Column of the Schedule;

(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)

(Deleted by Legal Notice 20 of 2022).

(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.