Renewable energy investment scheme to lose licence for breach in MFSA rules

The Malta Financial Services Authority (MFSA) has decided to proceed with the cancellation of a renewable energy investment scheme’s collective investment licence and has also issued a directive against it.

The scheme, known as Nova Renewable Energy (Novare) Fund SIVAC plc, was registered as a company in May 2012 and was granted a licence to operate as a professional investor fund in July of that year.

The MFSA determined that it failed to comply with obligations emanating from the Investment Services Act and standard licence conditions as set out in Part BII of the Investment Services Rules for Professional Investor Funds targeting qualifying investors (known as the Rules).

It was also found to have failed to:

• Submit annual reports and audited financial statements for the years ending 31st December 2018; 2019; 2020 and 2021 within six months from the end of the reporting period concerned in terms of SLC 1.62 of the Rules;
• Appoint a compliance officer as per the requirements set out in SLC 1.23 of the Rules;
• Appoint an MLRO as required by SLC 1.29 of the Rules;
• Appoint an auditor approved by the MFSA in terms of SLC 1.32 of the Rules;
• Settle the supervisory fees as required by SLC 1.63 of the Rules; and
• To cooperate with the MFSA in providing the required information as required by Article 13(1B)(a) of the Investment Services Act.

As a result, the MFSA has decided to proceed with cancelling the scheme’s collective investment licence and has issued a directive to the scheme, directing it to change its name and remove any reference to licensable activities in the objects clause contained in the memorandum and articles of association.

At the time of writing, the MFSA’s decision may still be appealed before the Financial Services Tribunal.