On the 22nd March 2013, MFSA has launched a consultation process concerning a proposed Rulebook applicable to De Minimis Licence Holders. Comments are to be submitted till 5th April 2013. The Alternative Investment Fund Managers Directive (AIFMD) stipulates the minimum conditions to be fulfilled by a de minimis AIFM, although Member States may adopt stricter rules. In fact, the proposed MFSA framework contains some additional organisational requirements and financial resources requirements over and above those stipulated in the AIFMD.
De minimis AIFMs have to comply with a minimum licensing regime rather than mere registration, which may be more beneficial to start-up/smaller fund managers when dealing with potential investors. The de minimis Licence Holder will only be allowed to provide collective portfolio management to collective investment schemes which are not retail schemes. If the de minimis licence holder intends to provide additional services, such as MiFID type services or collective portfolio management to UCITS schemes, it ought to comply with the corresponding investment services rules.
A de minimis licence holder must satisfy one of the following conditions:
- Manage, directly or indirectly, portfolios of AIFs whose assets under management, including those acquired through leverage, do not exceed €100 million, or
- Manage, directly or indirectly, portfolios of AIFs whose assets do not exceed €500 million, provided the portfolios of AIFs are unleveraged and no redemption rights may be exercised during the first 5 years of investment in each AIF.
If the de minimis Licence Holder no longer complies with these requirements, it shall notify MFSA and apply for an extension to its Category 2 Licence within 30 days.
