The MFSA is currently working on the transposition of Directive 2009/65/EC of 13 July 2009 (“the UCITS IV Directive”) which is to be transposed into Maltese law by not later than 30 June 2011.
The UCITS IV Directive has been supplemented by the following four Implementing Measures (Directive Requirements) consisting in two Directives and two Regulations all dated 1 July 2010:
• Commission Directive regarding organisational requirements, conflicts of interest, conduct of business, risk management and content of the agreement between a depositary and management company;
• Commission Directive regarding certain provisions concerning fund mergers, masterfeeder structures and notification procedures;
• Commission Regulation regarding the form and content of the standard notification letter and UCITS attestation, the use of electronic communications between competent authorities for the purpose of notification, and procedures for on-the-spot verifications and investigations and the exchange of information between competent authorities;
• Commission Regulation regarding information and conditions to be met when providing key investor information of the prospectus in a durable medium other than paper or by means of a website;
The Directive requirements have been further supplemented at level III by ESMA by means of guidance documents on the Key Investor Information Document (“KII”) and on Risk Measurement.
The UCITS IV Directive requirements, with the exception of the KII requirements, need to be implemented by not later than 1 July 2011. Schemes licensed before 1 July 2011 have been granted a transitional period of one year, (i.e. until 1 July 2012) to substitute their simplified prospectus with the KII.
After July 2011 the MFSA will be monitoring compliance with the applicable requirements which transpose the UCITS IV Directive through its Securities and Markets Supervision Unit’s off-site and on-site supervisory functions.
The MFSA issued a Consultation document on the proposed new eight Regulations drafted by the MFSA to transpose the UCITS IV Directive. On the basis of the comments submitted, the MFSA has reconsidered the approach of transposing the requirements of the Directive primarily through Legal Notices and it has decided that the main provisions of the Directive will be transposed by way of Investment Services Rules.
The only requirements of the UCITS IV Directive which will be transposed by means of Regulations will be those relating to:
• the passporting of UCITS Schemes and their Management Companies; and
• the mergers of UCITS Schemes.
The Investment Services Rules are currently being drafted and will be issued for consultation in due course.
