On 30 October 2012 it has been published that the Malta Financial Services Authority (MFSA) has announced a number of legislative proposals to update the reporting requirements for Collective Investment Schemes.

Presently there is a disparity in the treatment of these vehicles in Maltese law. The MFSA has proposed to amend three regulations:

• The Companies Act (Investment Companies with Variable Share Capital) Regulations;

• The Investment Services Rules for Retail Collective Investment Schemes; and,

• The Investment Services Rules for Professional Investor Funds.

The amendments will introduce consistent rules in respect of collective investment schemes, namely requiring:

• The directors of a SICAV (a type of open ended investment company) to send notice to the registered postal address of each shareholder and unit-holder not less than 14 days prior to the annual general meeting, advising that the annual accounts are available to shareholders and unit-holders free of charge upon request, and that within four weeks of their approval, the annual accounts shall be posted on a website designated therein;

• Accounts must be made available to all shareholders and unit-holders, in both printed and electronic form, free of charge upon request, not less than 14 days prior to the annual general meeting; and

• A new rule is proposed to be added to the Investment Services Rules for Professional Investor Funds that will require directors of a SICAV to send an information report to all unit-holders within four weeks of every annual general meeting detailing the information provided therein.