The appropriate Application Form must be completed when submitting an application for a Collective Investment Scheme licence under the Act (Schedule 1 to this Part refers). The application requirements and the ongoing requirements, to which licences are subject, are summarised below.
There are three phases as follows:-
Phase One - Preparatory Phase
MFSA recommends that the promoters arrange to meet representatives of the MFSA to describe their proposal. This preliminary meeting should take place in advance of submitting an Application for a licence. Although guidance will be given on the relevant regulatory requirements and on the completion of the Application documents, responsibility for the formulation of the proposal and the completion of the Application documents will remain with the Applicant. It is essential that the Applicant provides a comprehensive description of the proposed activity at the beginning of Phase One. After preliminary discussions, the Application form will be submitted together with the supporting documents as specified in the Application Form itself.
The Application and the supporting documentation will be reviewed by the Authority and may ask for more information and may make such further enquiries as it considers necessary. The ‘fit and proper’ checks – which entail following up the information which has been provided in the Application documents – begin at this stage. The MFSA will consider the nature of the proposed fund and a decision will be made regarding which “Standard Licence Conditions” (SLCs) should apply. The licence conditions are very important since they represent the ongoing requirements to which the Applicant will be subject, if and when licensed.
Phase Two – Pre-Licensing Phase
Once the review of the draft Application and supporting documents has been completed, the Authority, if satisfied with the draft documentation provided, will issue its ‘in principle’ approval for the issue of a licence. At this stage, the Applicant will be required to finalise any outstanding matters. Submission of signed copies of the revised Application form together with supporting documents in their final format, and any other issues raised during the Application process, should be resolved as part of Phase Two.
A licence will be issued as soon as all pre-licensing issues are resolved. Phase Three – Post-Licensing/ Pre-Commencement of Business. The Applicant may be required to satisfy a number of post-licensing matters prior to formal commencement of business.
Phase Three – Post-Licensing/ Pre-Commencement of Business
The Applicant may be required to satisfy a number of post-licensing matters prior to formal commencement of business and they can only commence operations once the licence is granted.