Monday, May 27, 2013

Publication of Revised version of the Investment Services Rules

Publication of Revised version of the Investment Services Rules for ...th 7 March, 2013 Amendment of the Investment Services Rules applicable to Money Market Funds The MFSA is today publishing a revised version of the Investment Services Rules for Professional Investor Funds and of the Investment Services Rules for Retail Collective Investment Schemes and the Investment Services Rules for Professional Investor Funds (hereinafter referred to as the “Rules”). The changes to the Rules, as indicated below were made following a peer review which has been carried out by ESMA with a view to ensure uniform requirements applicable to money market funds, across all the EU Member States. Further to the above, the following amendments have been made: Investment Services Rules for Professional Investor Funds Appendix 1 – Supplementary Licence Conditions

A new Section 6, herewith attached as Annex 1, has been introduced prescribing the conditions applicable to Money Market funds which will be set up as Professional Investor Funds. Investment Services Rules for Retail Collective Investment Schemes Appendix 7 - Supplementary Licence Conditions Applicable to Schemes set up as Money Market Funds In paragraph 1 Appendix (sub-paragraph 1.1), a specific requirement has been added so that all Retail Collective Investment Schemes established as money market funds shall have the primary objective of maintaining the principal investment of the fund and shall aim to provide a return in line with money market rates. Accordingly, the new sub-paragraph 1.1 of Appendix 7 will read as follows: “1.1. A money market fund shall: (a) comply with the provisions of the Act, the applicable conditions prescribed in Parts A and B of these Rules as well as the supplementary licence conditions prescribed hereunder.; and (b) have the primary objective of maintaining the principal investment of the fund and shall aim to provide a return in line with money market rates.” In paragraph 4 of this Appendix it is now clearly established that the MFSA shall not allow a fund to include the term “money market fund” in its name unless the fund adheres with the supplementary conditions set out in this Appendix. The new paragraph 4 will therefore now read as follows: “4. Applicability 4.1. Funds labelled or marketed as money market funds which are created on or after the 1st July 2011 shall comply with these SLCs . The MFSA shall not allow a fund to include the term “money market fund” in its name unless the fund adheres with the above supplementary licence conditions, as applicable.” Any queries with regards to the updated Rules should be addressed to Dr. Sarah Pulis, Manager, Securities and Markets Supervision Unit [e-mail: spulis@mfsa.com.mt] or Mr. Nathan Fenech Analyst, Securities and Markets Supervision Unit [e-mail: nfenech@mfsa.com.mt]; or Mr. Jonathan Sammut, Analyst, Securities and Markets Supervision Unit [e-mail: jsammut@mfsa.com.mt] Communications Unit Malta Financial Services Authority th 7 March, 2013 Annex 1 – New Section 6 of Appendix 1 to the Investment Services Rules for Professional Investor Funds 6 Supplementary Conditions for Professional Investor Funds set up as Money Market Funds in accordance with CESR/10-049 (CESR’s Guidelines on a common definition of European money market funds) General Requirements 6.1 A money market fund shall; (a) comply with the provisions...

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