S.L. 370.52 Art. 4Supervision fees in relation to the provision of investment services. 

(1) A person that is licensed to provide, or hold himself out as providing, any investment services, other than the investment services set out in items 5, 9 and 11of the First Schedule to the Act, in or from Malta shall, subject to the provisions of sub-

regulation (6), pay to the competent authority an annual supervisory fee as established in the Second Schedule, as applicable:

Provided that such annual supervisory fee shall vary depending on whether such person is licensed:

(a) to provide, or hold himself out as providing, any of the investment services set out in items 1, 6 and 8 of the First Schedule to the Act in or from Malta but does not intend to hold or control clients’ money or customers’ assets;

(b) to provide, or hold himself out as providing, any of the investment services set out in items 1, 6 and 8 of the First Schedule to the Act solely to professional clients and, or eligible counter-parties, in or from Malta, but does not intend to hold or control clients’ money or customers’ assets;

(c) to provide, or hold himself out as providing, any of the investment services set out in the First Schedule to the Act, other than those set out in items 3, 5, 7, 9 and 11, in or from Malta and to hold or control clients’ money or customers’ assets;

(d) to provide, or hold himself out as providing, any of the investment services set out in items 1, 2, 4, 6, 8, 10 of the First Schedule to the Act and any of the investment services set out in items 3 and 7 of the said Schedule to the Act, or any of the latter alone, in or from Malta and to hold or control clients’ money or customers’ assets; or

(e) to act solely as a AIFM. de minimis

(2) Without prejudice to the provisions of sub-regulation (1), a person that is licensed:

(a) to provide, or hold himself out as providing, any of the investment services set out in items 1, 6 and 8 of the First Schedule to the Act in or from Malta but does not intend to hold or control clients’ money or customers’ assets; or

(b) to provide, or hold himself out as providing, any of the investment services set out in items 1, 6 and 8 of the First Schedule to the Act solely to professional clients and, or eligible counter-parties, in or from Malta, but does not intend to hold or control clients’ money or customers’ assets, shall, subject to the provisions of sub-regulation (6), pay the following annual supervisory fee:

(a) the fee established in the Second Schedule, as applicable, for the first fifty thousand euro (€50,000) in net revenue or part thereof; and

(b) where applicable, the fee established in the Second Schedule, as applicable, for every additional fifty thousand euro (€50,000) in net revenue or part thereof: Provided that, in any case, the annual supervisory fee shall not exceed the maximum annual supervisory fee established in the Second Schedule, as applicable.

(3) Without prejudice to the provisions of sub-regulation (1), a person that is licensed:

(a) to provide, or hold himself out as providing, any of the investment services set out in the First Schedule to the Act, other than those set out in items 3, 5, 7, 9 and 11, in or from Malta and to hold or control clients’ money or customers’ assets; or

(b) to provide, or hold himself out as providing, any of the investment services set out in items 1, 2, 4, 6, 8, 10 of the First Schedule to the Act and any of the investment services set out in items 3 and 7 of the said Schedule to the Act, or any of the latter alone, in or from Malta and to hold or control clients’ money or customers’ assets, shall, subject to the provisions of sub-regulation (6), pay the following annual supervisory fee:

(a) the fee established in the Second Schedule, as applicable, for the first two hundred and fifty thousand euro (€250,000) in net revenue or part thereof; and

(b) where applicable, the fee established in the Second Schedule, as applicable, for every additional two hundred and fifty thousand euro (€250,000) in net revenue or part thereof:

Provided that, in any case, the annual supervisory fee shall not exceed the maximum annual supervisory fee established in the Second Schedule, as applicable.

(4) Without prejudice to the provisions of sub-regulation (1), a person that is licensed to provide, or hold himself out as providing, the investment service set out in item 5 of the First Schedule to the Act in or from Malta shall, subject to the provisions of sub-regulation (6), pay to the competent authority an annual supervisory fee as established in the Second Schedule, as applicable:

Provided that the lower annual supervisory fee established in the Second Schedule, as applicable, shall apply where such person is licensed to provide, or hold himself out as providing, such investment service solely to:

(a) Alternative Investment Funds marketed in

Malta in accordance with regulation 7 of the Investment

Services Act (Alternative Investment Fund Manager) (Third Country) Regulations; and, or

(b) Alternative Investment Funds which have no redemption rights exercisable during the five (5) year period from the date of initial investment and which generally do not invest in assets that must be held in custody in terms of the Investment Services Rules:

Provided further that the provisions of this sub-regulation shall not apply where a person is licensed to provide the investment service set out in item 5(a) and, or (b) of the First Schedule to the Act solely in connection with any other investment service set out in the said Schedule.

(5) Notwithstanding the provisions of sub-regulations (1) to (4), the first annual supervisory fee or fees, as applicable, due to the competent authority by a person as referred to in any of the said sub-regulations shall be the aggregate of the following:

(a) the minimum annual supervisory fee and, or the annual supervisory fee, as applicable, established in the Second Schedule, as applicable, prorated according to the period remaining between the date when such person is licensed under the Act and the end of the calendar year in which such person was licensed; and

(b) the minimum annual supervisory fee and, or the annual supervisory fee, established in the Second Schedule, as applicable, prorated according to the period between the start of the following calendar year and the date when the next supervisory fee is due in accordance with sub-regulation (6).

(6) The first annual supervisory fee or fees, as applicable, due in accordance with sub-regulation (5) shall be paid to the competent authority on the date when a person is licensed under the Act, and every annual supervisory fee or fees, as applicable, following the first annual supervisory fee or fees, as applicable, which are due by such person in accordance with the said sub-regulation shall be paid to the competent authority one (1) month from the date of submission of the annual audited financial statements as established by law.

(7) Where a person is licensed to provide, or hold himself out as providing, the investment services set out in item 9 of the First

Schedule to the Act in or from Malta, the provisions of regulation 5(2)

to (4) of the Financial Markets (Fees) Regulations shall apply.

(8) Where a person is licensed to provide, or holds himself out as providing, the investment services set out in items 11 of the

First Schedule to the Act in or from Malta, the provisions of regulation 6(2) to (4) of the Financial Markets (Fees) Regulations shall apply.