On the 10th November 2020, the Malta Financial
Services Authority (‘MFSA') announced that it has
restructured its Loan Funds Regime. The restructuring exercise was
undertaken to reflect market developments and the current economic
scenario, whilst also taking into consideration the direction being
taken at EU level with regard to loan origination by funds.
The MFSA's objective during the exercise was to
re-evaluate the regulatory approach to the market and achieve an
equilibrium between the need for a sound regulatory framework and a
regime which is pragmatic and accessible to the fund industry.
The key changes effected to the Loan Fund Rules include the
following:
- A loan fund may now be set up within an umbrella scheme, even
if other sub-funds within the scheme are not established as loan
funds;
