Restructuring Of The MFSA Loan Funds Regime

Mindful of the fact that certain businesses are finding it increasingly difficult to gain access to capital through traditional lending sources, on the 10th of November 2020, the Malta Financial Services Authority ('MFSA') restructured the Loan Funds Regime by publishing a revised version of the Loan Funds Rules, the aim of which is to achieve a better balance between the need for a comprehensive regulatory framework and making the regime more practical and accessible to the fund industry. The revised Rules are applicable from the 10th November 2020 onwards.

What changed?

The list below highlights the most salient changes which were made to the Loan Fund rules:

1. The requirement of having all the sub-funds of an umbrella structure licensed as loan funds has been removed. Thus, a Scheme structured as a multi-fund company may have a sub-fund licensed as a loan fund and other sub-funds having other investment objectives.