Brexit

MFSA to grant temporary passporting rights to UK entities

The Malta Financial Services Authority (MFSA) has announced that it will grant a temporary permission to UK entities which already passport their services and activities to local clients. Investment funds, asset managers, and investment firms fall under the definition of UK entities. This Temporary Permission Regime (TPR) will only be applicable to existing clients and valid contracts, if the UK leaves the EU zone without a withdrawal agreement. The TPR (which will remain valid for twelve months after the Brexit date) will allow UK entities to ensure business continuity and safeguard their existing clients.

Under this TPR, UK operators will be able to:

  1. obtain the necessary authorization;
  2. terminate existing contracts; or
  3. assign contracts to authorized entities;

UK operators which passport into Malta would not be allowed to offer their services to new investors/clients in Malta after the Brexit date .

The introduction of the TPR would also be subject to any EU legislation that may be applicable from time to time.

Further information can be accessed at this link:

https://www.mfsa.com.mt/wp-content/uploads/2019/03/20190328_Circular_BrexitMaltaTPRFinalVersion.pdf