The Malta Financial Services Authority (MFSA) has today issued a consultation note regarding the proposed introduction of a rulebook (the Rulebook) applicable to de minimis Alternative Investment Fund Managers (AIFM).
This is the MFSA’s third consultation regarding the implementation of the Alternative Investment Fund Managers Directive (AIFMD). The consultation period runs until 5th April, 2013.
A copy of the MFSA’s consultation note and the draft Rulebook can be obtained by clicking here.
Under AIFMD, an AIFM (including an internally managed AIF) which satisfies either of the following conditions (a De Minimis AIFM):
- assets of AIFs under management directly or indirectly do not exceed in the aggregate €100m; or
- assets of AIFs under management directly or indirectly do not exceed in the aggregate €500m where the AIFs are unleveraged and have no redemption rights during the first 5 years from initial investment,
are subject to a lighter regime but are not afforded access to the AIFMD Marketing Passport (unless they opt-in to the full regime). Once a De Minimis AIFM exceeds the relevant threshold it has a period of 30 calendar days to apply for authorisation as an AIFM (and thus be subject to the full regime). AIFMD allows EU Member States to adopt stricter rules for De Minimis AIFMs.
By applying a minimum licensing regime (as opposed to registration) the MFSA’s proposed Rulebook for De Minimis AIFMs seeks to strike a balance between providing a flexible regime for smaller/start-up fund managers and protecting Malta’s reputation as a well regulated jurisdiction for financial services. Indeed, with the exception of a potential reduction in the minimum capital requirements (€125k without the 2 bps top-up for AuM over €250m) and other simplifications, the Rulebook broadly reflects the successful pre-AIFMD regime in Malta for non-UCITS fund managers.