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ARTICLE · 12 JUNE 2014

MFSA Investment Services Rules For Loan Funds

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The MFSA published a Rulebook on the "Standard Licence Conditions applicable to Collective Investment Schemes authorised to invest through Loans".

MaltaFinance and Banking
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On 2nd April 2014, the MFSA published a Rulebook on the "Standard Licence Conditions applicable to Collective Investment Schemes authorised to invest through Loans".

General requirements

A loan fund shall be established as a Professional Investor Fund if the fund manager is a de minimis AIFM or as an Alternative Investment Fund if the fund manager is an AIFM licenced. The fund shall be a SICAV with closed ended features. It shall be able to invest exclusively through loans and only to unlisted companies (including SMEs), with the exclusion of financial institutions.

The MFSA Rules cover direct origination of loans by the Scheme, or the acquisition by the Scheme of a portfolio of loans, or a direct interest in loans which gives rise to a direct legal relationship between the Scheme as a lender and the borrower.

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