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ARTICLE · 15 APRIL 2014

Loan Funds Take The Stage In Malta

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Spurred by various enquiries on the matter, the MFSA has last week launched the Investment Services Rules for Loan Funds.

MaltaFinance and Banking
Kurt Hyzler
Kurt Hyzler
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Spurred by various enquiries on the matter, the MFSA has last week launched the Investment Services Rules for Loan Funds (the "Rules") which provide for the licensing and regulation of collective investment schemes investing through loans ("Loan Funds"). This paper will analyse the Rules and how these fit into the current Maltese fund legislation.

Eligible Investments to be done "Through Loans"

What distinguish Loan Funds from other funds are their investment objectives and policies. The Rules essentially answer the question many have been asking themselves (and apparently also the MFSA): Can a fund give loans?

Maltese funds structured in terms of the Rules may now answer in the affirmative. In fact these at least 70% of the Loan Fund's assets are to be invested "through loans". This understood as constituting:

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