As the UK is set to leave the European Union on 1 January 2021 at the end of the Brexit transition period, Sovereign Pension Services (SPS) in Malta has been issuing guidance to keep investment advisers updated as to how this might affect their relationship with clients and to keep members updated as to how this might affect their pension schemes.
Since our scheme is what is known as a member-directed scheme, all our members, unless qualifying as professional members, must appoint an investment adviser or investment manager in relation to their pension scheme’s investments, provided that these chosen entities meet the criteria specified in the Malta Pension Rules for Personal Retirement Schemes.
These rules are in place to ensure that our members are only dealing with bona fide qualified investment advisers and managers, and since their introduction in 2019, we have worked hard to make sure that our members’ advisers are thoroughly vetted and compliant.
After EU ‘passporting’ arrangements cease on 31 December 2020, UK firms providing investment advice to other European Economic Area (EEA) countries, and vice versa, will need to do so on a different legal basis.
If you are regulated in the UK and advising clients outside the UK, we will require evidence that you have spoken to the relevant regulator in your clients’ EEA state and that they have authorised the relationship. If you are regulated outside the UK and advising clients in the UK, we will require evidence that you have registered under the FCA temporary permission regime or have obtained an exemption.
Our team is available to answer your queries on maltapensions@SovereignGroup.com, or you can call our office on +356 27 888 132.