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.

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