The Malta Financial Services Authority (MFSA) has launched a new framework for Notified Professional Investor Funds (NPIFs).

The framework provides for an additional fund structure in Malta that benefits from a streamlined onboarding process and complements other fund frameworks. The launch follows two public consultation exercises.

The new framework is governed by a set of proportionate and risk-based criteria - these funds must be serviced by specified regulated service providers, should fall within the established asset thresholds, and be offered only to eligible investors, the MFSA said. 

A Notified Professional Investor Fund is a special type of non-retail collective investment scheme which is notified to the Authority and solely available to professional and/or qualifying investors.

NPIFs are subject to a streamlined notification process and are governed by a regulatory framework which their service providers are also required to adhere to. NPIFs may only be set up as non-retail schemes available to Qualifying and/or Professional Investors and will be required to provide the appropriate risk disclosures to any prospective investor accordingly.

The establishment of this framework is part of a number of key regulatory and policy initiatives being undertaken by the Authority in relation to asset management.

Commenting on its launch, Chief Officer Strategy, Policy and Innovation Michael Xuereb said: “These initiatives are aimed at further improving the regulatory platform for professional investment funds by means of streamlined, pragmatic and risk-based policymaking. It is expected that the framework will lead to lower setup, operational and regulatory costs than those currently experienced in operating a fully licensed fund.”

Further information on this framework is available on the MFSA website.