Malta Pension Act Changes 2019

10 Apr 2019

In January 2019, the Malta Financial Services Authority (MFSA) announced updated Pension Rules in Malta which impacted the way in which the Pension Trustees administered both new scheme applications and existing members on a number of levels.
Four main areas were identified, these being:

  1. Investment advice received by the Malta Trustee can be via:
    1. A trustee appointed Investment Manager at scheme level
      1. Orphaned members will have their pension funds invested as per the Trustee appointed Investment Manager’s investment strategy based on members attitude to risk
    2. A client appointed Investment Adviser, either acting on a discretionary basis or providing investment choices
      Either option - the Investment Manager or the Investment Adviser must meet the criteria set out by the MFSA to issue investment advice
  2. Cooling off period before the Trustee will action a member scheme application
  3. Associated charges transparency
  4. Option for “professional members” who meet the MFSA criteria

The below link takes you to the Malta Financial Services Authority January Newsletter which confirms that the changes have been made to the Retirement Pensions Act. A copy of the updated rules is available, but please note that these have been written for the Pension Trustee and not the scheme members:
deVere has worked with each of the Malta Trustees to ensure that we continue to comply with the regulatory changes and we recognise these as a positive move forward. The solutions that we have in place have been accepted by the Malta Trustees and, the necessary steps have been taken in order for our clients to be able to take advantage of appointing an acceptable Investment Adviser with the comfort of knowing that their funds are actively managed in a manner that meets their individual objectives, attitude to risk and regulatory expectations.
Any questions you have can be directed to either your financial adviser or your pension trustee who will be more than happy to help.