The Malta Financial Services Authority (MFSA) has recently released an update regarding UK licensed investment funds, asset managers and investment firms also known as ‘UK entities’ passporting into Malta.
The Malta Financial Services Authority proposes to grant a Temporary Permission Regime (referred to as TPR) to UK entities that already passport their services and activities into Malta. The objective of the Temporary Permission Regime is to assure financial stability, business continuity as well as to protect existing investors/clients. The temporary permission regime would only be valid to existing clients and valid contracts, if the UK leaves the EU zone without a withdrawal agreement by the Brexit date.
The temporary permission regime that will remain valid for twelve months after the Brexit date. Through this Temporary Permission Regime, UK operators will be able to:
UK entities that passport into Malta would not be allowed to offer their services to new investors/clients in Malta after the Brexit date. Any entity that provides cross-border services from the UK to Malta through the current passporting arrangements, and would like take advantage of the Temporary Permission Regime should notify the Authority of its intents and if they are planning to apply for a Maltese licence.
The introduction of the Temporary Permission Regime would also be subject to any EU legislation that may be applicable from time to time.
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