The NAIF regime was introduced by the MFSA in February 2016 with the aim to offer Alternative Investment Fund Managers (AIFMs) an uncomplicated and better time to market for setting up AIFs in Malta.
One of the main benefits of the Notified AIF Regime is the short time to market. The application is registered by the Malta Financial Services Authority within ten (10) working days from the receipt of the complete Notification pack.
The MFSA has now published a new rulebook that is dedicated to NAIFs which reflects the key changes namely the following:
- Changes to the prospectus must be acknowledged by the MFSA within five (5) working days from the notification of change. This was previously ten (10) working days.
- It is now possible to request the conversion of a licensed collective investments scheme into a NAIF.
- A Notified AIF may acquire (but not originate) loans, these will be subject further requirements as set out in the NAIF Rules.
- A Notified AIF shall not subject to any restrictions on the type of asset classes in which it may invest, with the exception of ‘Loan Origination’, which remains restricted, whilst ‘Loan Acquisition’ is subject to certain requirements, as further detailed in the Rules.
These revised rules are applicable to current and prospective Notified AIFs effective from the 24th of June 2021. Furthermore, AIFMs of existing NAIFs are expected to undertake an impact assessment of the revised Rules against their current operations. Action by the scheme is required should any potential issues arise as a result and must be addressed by no later than the 31 st of December 2021.
For more information on how Zeta can assist you please contact our Business Development team on bd@zeta-financial.com.
