New Investment Rules for Loan Funds in Malta

Malta Introduces New Investment Rules for Loan Funds.

The Malta Financial Services Authority (MFSA) has published a series of standard licence conditions applicable to collective investment schemes authorized to invest through loans.

Until recently, collective investment schemes were precluded from investing in schemes through loans, since the financing of loans was deemed to be an activity reserved solely to entities licensed in terms of the Financial Institutions Act or Banking Act.

Following the publication of the rules, it is possible for a loan fund to be established as a Professional Investor Fund or as an Alternative Investment Fund, insofar that the fund is a close-ended scheme and the investment through loans is limited to unlisted companies to the exclusion of financial institutions. A minimum investment of EUR 100,000 per investor is also mandatory.

Contact one of our officers for further information regarding the licence regime applicable to loan funds.