The deVere Group is to change the investment manager for its Malta Qrops clients to a Mifid-compliant, Mauritius-based subsidiary to meet new regulatory standards from the Malta Financial Services Authority (MFSA).
It has contacted its clients to say the management of their investment portfolio will be moved across to deVere Investments, which has an investment banking licence from the Financial Services Commission in Mauritius.
Prior to the change, deVere Group advisers spoke to clients about their investment needs under an insurance mediation licence.
Clients will also still have to raise any issues they have with their investments to the regulator in the country they are based rather than to the financial watchdog in Mauritius where deVere Investments is regulated.
Low cost investments
Nigel Green, chief executive of the deVere Group, told International Adviser: “Malta Qrops clients need an investment adviser with either Mifid or equivalent status.
“We are using our Mauritius investment banking license to manage client monies via model portfolios.
“We are using low-cost funds that are highly regulated. Pacific Asset Management have helped us develop the process.”
The firm’s partnership with Pacific Asset Management will be utilised to help produce investment options for the firm’s clients.
For the clients there is no change to their current appointed deVere adviser for regulator servicing needs and this adviser will continue to undertake annual reviews, its just the investment portfolio manager which is changing.
Regulatory reform
The regulatory body is reportedly cracking down on Mifid (Markets in Financial Instruments Directive)-related regulations surrounding conduct of business and organisational requirements for investment firms.
This publication has contacted the MFSA for a comment on the crackdown.
The MFSA is requiring that investment advice must be made by a Mifid (Markets in Financial Instruments Directive)-compliant individual or firm.
IA reported that the MFSA’s chief executive has reform on his agenda during his tenure.
