Financial Services

MFSA revises Loan Funds Rules

The Malta Financial Services Authority (MFSA) has issued a circular with which it informs stakeholders on the revision of the Loan Funds Rules, reflecting the restructuring of the MFSA Loan Funds Regime. The changes have been carried considering the current economic scenario, the direction being taken at EU level on the subject and the feedback received by the Authority. In order to ensure that SMEs in particular, have access to adequate financing and can further diversify their funding sources, the EU’s Capital Markets Union (CMU) is aiming to simplify access to alternative sources of funding and, consequently, reduce their over-reliance on bank financing and promote financial innovation throughout Europe.

The MFSA is therefore providing a revised set of rules, which also include the “Frequently Asked Questions document on the Standard Licence Conditions applicable to Collective Investment Schemes authorised to invest through loans” published in May 2015, to provide further clarity to those entities intending to apply for a license in terms of this regime.

 

The circular as issued by the MFSA can be accessed at: https://www.mfsa.mt/wp-content/uploads/2020/11/Circular-on-the-Restructuring-of-the-MFSA-Loan-Funds-Regime.pdf