Financial Services & Fintech

MFSA Clarifies the limits applicable to cross sub-fund investments

17 Feb 2014

< 1 min read

Subject to certain conditions, a sub-fund of a PIF or of an AIF which is constituted as a SICAV is allowed to invest up to 50% of its assets into another sub-fund or sub-funds within the same umbrella scheme.

Following various requests for clarifications, by means of an explanatory noted dated 06th February 2014, the MFSA has clarified that the said “50% limitation applies for an investment in any one other sub-fund of the same scheme, but not to the collectivity of investments by such sub-fund in all the other sub-funds of the same scheme.”

In view of the above, the MFSA will be amending the relevant Rulebooks in order to ensure clarity and consistency in the interpretation.

For further information about how GVZH Advocates can help you with your financial services requirements kindly contact us here.