The Malta Financial Services Authority published a position paper on the tokenisation of fund units issued by Collective Investment Schemes (CISs), setting out Malta’s position on the operational efficiencies that can be achieved when fund units are represented in digital form via smart contracts using digital ledger technology. The paper describes how tokenisation can facilitate more seamless transfers and more cost-effective issuance of CIS units. It highlights the critical role of the fund administrator in the tokenisation process and sets out transparency requirements, including specific disclosures in offering documentation covering Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures and the information and obligations associated with dealing in tokenised fund units. It also flags challenges for service providers, particularly in cyber security, alongside potential efficiencies in settlement and the automation of due diligence processes.
Malta Financial Services Authority 2025-08-04
Malta Financial Services Authority issues position paper on tokenisation of collective investment scheme units and associated disclosure expectations
The Malta Financial Services Authority released a position paper on tokenising fund units of Collective Investment Schemes, emphasizing operational efficiencies through digital ledger technology. The paper outlines the role of fund administrators, transparency requirements, and challenges such as cyber security. It also addresses AML and KYC disclosures and highlights potential efficiencies in settlement and due diligence automation.