The highly anticipated framework for Notified Professional Investor Funds ("NPIFs") has been published by the Malta Financial Services Authority (the "MFSA"). NPIFs will complement the suite of fund products available in Malta and we expect this new regime to be a key tool for fund launches by sub-threshold managers.
Similar to Notified AIFs, NPIFs are not authorised or licensed by the MFSA but merely notified to the MFSA. This will significantly condense time to market, allowing funds to be launched in very short timeframes, within a maximum of 10 working days from the submission of a complete notification pack to the MFSA.
In broad terms, NPIFs can only be managed by:
(a) locally licensed de minimis AIFMs;
(b) EU/EEA de minimis AIFMs; and
(c) third country AIFMs which are authorised in a jurisdiction with whom the MFSA has signed a bilateral cooperation agreement/MoU and which the MFSA deems to be subject to regulation in an equal or comparable level to that it would have been subject to in Malta.
NPIFs are non-retail schemes and are solely available to 'professional investors' (being investors who are considered to be professional clients in terms of MiFID II) and/or 'qualifying investors' which invest a minimum of EUR 100,000 (or the currency equivalent) and have net assets in excess of EUR 750,000 (or the currency equivalent).
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.
