MFSA Implements Fast-track Filing Procedure For Offering Documents Of Collective Investment Schemes Amended To Comply With The Sustainable Finance Disclosure Regulations. – Finance and Banking


Malta:

MFSA Implements Fast-track Filing Procedure For Offering Documents Of Collective Investment Schemes Amended To Comply With The Sustainable Finance Disclosure Regulations.


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Following the entry into force of the Sustainable Finance
Disclosure Regulation (“SFDR“) in December 2020, the
provisions of the said Regulations will become effective on the
10th March 2021.

By way of background, the SFDR will require financial market
participants and financial advisors to make pre-contractual and
ongoing disclosures to investors regarding the integration of
sustainability risk, the impacts of adverse sustainability, as well
as the promotion of ESG characteristics and sustainable investments
(as applicable).

In this respect, pursuant to a circular dated 9th February 2021, the Malta Financial
Services Authority (“MFSA“) communicated the process
to be adopted for the submission of updates to the pre-contractual
documents (prospectus) of locally based Collective Investment
Schemes before the 10th March
2021 (the “SFDR
Deadline
“).

Fast-track Filing Process

The MFSA has established a fast-track filing process for the
submission of the required updates to the offering documents,
pursuant to which UCITS management companies, AIFMs and Investment
Firms authorized under MiFID II which manage PIF structures by way
of delegation will be able to self-certify their compliance with
SFDR and notify the MFSA accordingly.

Insofar as documentation is concerned, licence holders will be
required to submit the following documents:

(i)The updated offering documentation of the relevant Scheme and
its Sub Funds (if applicable) – although it ought to be stressed
that this fast-track filing process is only applicable to changes
required for the purposes of compliance with SFDR and if there are
to be any further changes to the offering documents, these should
be made under a separate cover;

(ii)An attestation duly executed by the board of the respective
financial market participant (i.e. the management company or [in
the case of a self-managed fund] the fund itself) stating that the
amendments made to the offering documentation are in line with the
requirements of the SFDR and that no other amendments have been
made to the offering documentation;

(iii)A resolution from the board of directors of the relevant
collective investment scheme confirming that they have seen and
approve the changes made;

(iv)A confirmation from the compliance office of the relevant
scheme that the proposed changes are in line with the requirements
of the SFDR;

(v)[In the case of AIFs], the AIFM’s approval of the
contents of the offering documents;

(vi)[In the case of NAIFs], the documentation usually required
for any amendments to the offering documents of a NAIF under the
provisions of Part B II of the Investment Services Rules for
Investment Services Providers.

While the hard deadline for submission is the
10th March 2021, the MFSA has indicated
that any submissions made after the 3rd March 2021 will
be processed on a best-efforts basis before the SFDR Deadline (i.e.
10th March 2021).

Moreover, any submissions made after 10th March 2021
will be treated as any other change to an offering document and may
therefore be subject to comments, thus delaying the approval
process and resulting in a breach of the provisions of the SFDR for
as long as it would take for the offering documents to be
approved.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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