Temporary Permission Regime
The Malta Financial Services Authority (MFSA) has recently released a circular announcing the Temporary Permission Regime (TPR).
This regime is applicable to the following entities that are; regulated by the UK Financial Conduct Authority (FCA) or the Gibraltar Financial Conduct Commission (FSC) and who are currently passporting the following services into Malta:
- Investment funds;
- Asset managers;
- Investment firms.
The MFSA intends to grant these qualifying entities with permission to continue passporting their services in the event that the UK exits the EU without a withdrawal agreement in place (a so-called No Deal Brexit’). This permission will be granted on a temporary basis and will be valid for 12 months from the actual Brexit date. The TPR is designed to allow qualifying entities to have adequate time in which to:
- obtain the relevant authorisation necessary to continue providing their services in a Brexit scenario;
- terminate any existing contracts in an orderly fashion;
- assign any existing contracts to a duly authorised entity.
The TPR is not designed to allow qualifying entities already passporting into Malta to offer their services to new investors/clients in Malta post Brexit date.
Any qualifying entity which provides cross-border services from the UK to Malta under the current passporting arrangements and would like to benefit from TPR is encouraged to make the relevant representations to the MFSA to advise its future intentions, clearly indicating whether or not they intend to apply for a Malta License. More information, including guidance on the required process to notify the MFSA, shall be provided in due course.
For further information you are kindly requested to contact David Borg on [email protected]