Malta: Constant development

Author: | Published: 1 Jun 2011

"Legal and systematic risks associated with payment and securities settlement systems have been addressed by the Central Bank of Malta"

The regulation of derivatives is a part of the Maltese financial services regulatory framework which is in constant evolution. An area of particular note is Part B II of the Maltese Investment Services Rules for Retail Collective Investment Schemes: Malta-based UCITS Collective Investment Schemes, which contains key principles related to financial derivative instruments (FDIs), including transactions intended for investment and/or efficient portfolio management.

A Maltese based UCITS scheme may transact in financial derivative instruments as long as the transaction involves FDIs of the kind specified in Investment Services Rule 4.1 (vii); and the transaction in the FDI does not cause the scheme to diverge from its investment objectives as laid down in the scheme's constitutional documents and/or offering document.

The scheme may only enter into transactions for...