On the 16th July 2015, the Malta Financial Services Authority (MFSA) issued a Circular notifying the financial services industry of the publication of a revised Frequently Asked Questions (“FAQ”) document relative to the application of the Loan Fund Rules.
The revisions effectively clarify the type of loans which may be originated by loan funds as well as the type of loan portfolios which may be acquired by loan funds
The revisions to the said FAQ document effectively clarify the type of loans which may be originated by loan funds as well as the type of loan portfolios which may be acquired by loan funds. To this end, the updated FAQ provide that Loan Funds may issue loans solely and exclusively to unlisted companies and SMEs and that financial undertakings (as defined in the relative MFSA Rules) shall not be eligible to receive financing from such Loan Funds.
Moreover, whilst in terms of the applicable Loan Fund Rules a Collective Investment Scheme may not originate loans to households or individuals, the updated FAQ provides that loans to households or individuals that have been originated by credit institutions may indeed be acquired by a Loan Fund under the applicable conditions established by the aforesaid Loan Fund Rules.
The full FAQ document is available for download from the MFSA’s official website.