S.L. 370.21 Art. 6Marketing of AIFs by AIFMs to retail investors in Malta.

(1) An AIF shall not be marketed to retail investors in Malta unless it is in possession of an authorisation for this purpose from the competent authority.

(2) Regulations 3 and 5 shall, in so far as applicable, apply and reference to the term "professional investor" mutatis mutandis shall be deemed to be a reference to "retail investors", subject to such variations or modifications as may be prescribed:

Provided that the AIFM shall not be allowed to engage in the pre-marketing of any units or shares of an AIF to retail investors.

(3) Where an AIF is to be marketed to retail investors in Malta, the AIF and its AIFM shall be subject to Investment Services Rules, which shall prescribe the following:

(a) the types of AIF with respect to which an application for marketing to retail investors may be made to the competent authority;

(b) the manner and form of an application for an authorisation to market an AIF to retail investors in Malta, including the imposition of an application fee where applicable;

(c) the conditions for authorisation for marketing to retail investors;

(d) the on-going obligations applicable to the marketing of an AIF to retail investors in Malta, including the imposition of a supervision fee where applicable; and

(e) any other relevant matter determined by the competent authority.

(3A) The AIFM shall submit the notification letter referred to in regulations 3(4) and 5(4) respectively and shall also provide information on the facilities for performing the tasks referred to in sub-regulation (7) of this regulation.

(4) The competent authority may in Investment Services Rules impose stricter requirements on the AIFM or the AIF than the requirements applicable to the AIFs marketed to professional investors in Malta in accordance with the provisions of the AIFM Directive. The competent authority shall not, however, impose stricter or additional requirements on European AIFs established in Member State or EEA State other than Malta and marketed on a cross-border basis than on AIFs marketed in Malta.

(5) The competent authority shall, by 22 July 2014, inform the European Commission and ESMA of:

(a) the types of AIF which AIFMs may market to retail investors in Malta; and

(b) any additional requirements that the competent authority imposes for the marketing of AIFs to retail investors.

(6) The competent authority shall also inform the European Commission and ESMA of any subsequent changes with regard to sub-regulation (5).

(6a) An AIFM may market units or shares of a European AIF which invests predominantly in the shares of a particular company, to employees of such company or of its affiliated entities within the framework of employee savings schemes or employee participation schemes, on a domestic or cross-border basis: Provided that where such an AIF is marketed to employees in Malta, it shall not be subject to any requirements in addition to those applicable in the home Member State of the AIF.

(7) Where an AIF is to be marketed to retail investors in Malta, the AIFM shall take the measures necessary to ensure that facilities are available therein to perform the following tasks:

(a) process investors’ subscription, payment, repurchase and redemption orders relating to the units or shares of an AIF, in accordance with the conditions set out in the AIF’s documents;

(b) provide investors with information on how orders referred to in paragraph (a) can be made and how repurchase and redemption proceeds are paid;

(c) facilitate the handling of information relating to the exercise of investors’ rights arising from their investment in an AIF in Malta;

(d) provide investors with information relevant to the tasks that the facilities perform in a durable medium; and

(e) act as a contact point for communicating with the competent authority.

(8) In respect of an AIF, units of which are intended for marketing in Malta, the AIFM shall make available to investors for the purposes of inspection and obtaining copies thereof an annual report for each financial year as well as the information and documents required pursuant to Article 23 of AIFM Directive.

(9) The AIFM shall ensure that the facilities to perform the tasks referred to in sub-regulation (7), are provided, including electronically:

(a) in the official language or one of the official languages of Malta or in a language approved by the competent authority;

(b) by the AIFM itself, by a third party which is subject to regulation and supervision governing the tasks to be performed, or by both.

(10) For the purposes of paragraph (b) of sub-regulation (9), where the tasks are to be performed by a third party, the appointment of that third party shall be evidenced by a written contract specifying which of the tasks referred to in sub-regulation

(7) are not to be performed by the AIFM and that the third party will receive all the relevant information and documents from the AIFM.

(11) The AIFM shall not be required to have a physical presence in Malta or to appoint a third party for the purposes of sub-regulation 7.TRANSITORY PROVISIONS

MISCELLANEOUS