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MFSA Launches Consultation for Self-Managed Notified Professional Investor Fund

By June 13, 2024June 20th, 2024No Comments

We are excited to announce that the Malta Financial Services Authority (MFSA) has launched a new consultation process regarding the introduction of Self-Managed Notified Professional Investor Funds (SM NPIF). This initiative aims to enhance the investment landscape in Malta by offering a streamlined framework for professional investors.

Key Features

The proposed framework for SM NPIF is similar to the existing NPIF framework, with the exception related to the management function and certain aspects of the AIFM Directive that apply due to the internal management structure of the scheme.

A Self-Managed NPIF would adhere to the same requirements as third-party managed NPIFs, except for the following distinctions:

  • Initial Capital Requirements: It must have an initial paid-up share capital of at least €125,000 (or its equivalent in another currency), and the Net Asset Value (NAV) of the scheme must consistently exceed this amount. Thus, the capital requirements for a Self-Managed NPIF would align with those for a licensed Self-Managed PIF.
  • Investment Committee: It must appoint at least three Investment Committee members, including at least one Portfolio Manager who may also serve as a member of the Investment Committee and/or the board.
  • Due Diligence Service Provider: In the existing NPIF framework (third-party managed), the Due Diligence Service Provider (DDSP) evaluates the suitability and propriety of the third-party manager. This manager must be authorized by the MFSA, an EU/EEA state, or a third country with comparable regulation to Malta. Therefore, there is reliance on the manager’s regulatory status. Conversely, for Self-Managed NPIFs, the DDSP would assess the fitness and propriety of the Portfolio Manager and the members of the Investment Committee, focusing on their qualifications and experience, rather than evaluating a third-party manager.

Reach out to us on queries@fexservfunds.com for any guidance or information you might require!