Investment Funds

Malta as a Funds domicile and services base 

Over the past few years, via its hallmark comparative approach, Malta has produced a market leading comprehensive legislative and regulatory framework for setting-up, licensing and marketing of Collective Investment Funds and Professional Investment Funds. This well-structured balance of legislation and product focus, has enabled Malta (a fully-fledged member of the European Union) to rapidly become a preferred jurisdiction for Non-Retail Funds, solidly grounded in a UK modelled professional services architecture and beneficial tax treatment.  

Malta domiciled funds and investments have several advantages, beginning with status as a European Union entity, and the functional integrity resulting from internationally accepted regulatory standards and significant cost/benefit value. Moreover as a member of the European Union, Malta’s laws and regulations are fully compliant with EU directives governing financial services. This specialist evolution has attracted a number of international financial institutions, to operate from Malta enhancing a tailored financial infrastructure and related service industry. Thanks to political consensus from its outset, the financial sector in Malta now contributes 12% of the island’s GDP and all parties remain openly committed to ensure this sector’s expansion as a main pillar of the Maltese economy.

Malta has a stable legal and political environment which is advantageous especially within the context of its geo-strategic Mediterranean position thus making it well connected to mainland Europe, North Africa and the Middle East. Moreover, experience as a maritime centre since the 1970’s, and a rich tax treaty network of more than 50 treaties, enriches Malta with a full range of multi-lingual professionals focused on managing international clients and transactions.

Legislation 

As Collective Investment Schemes, Professional Investor Funds (PIFs) are regulated by the Investment Services Act 1994 as amended in 2002. The Act ensures investor protection within a stable and attractive market, enabling participants to conduct their business in or from Malta.

Furthermore the Act provides the statutory basis for the licensing and regulation of persons and companies wishing to set up investment services undertakings and collective investment schemes.

The Malta Financial Services Authority (MFSA) is the single regulator of financial services in Malta. The Investment Services Act delegates extensive rule making powers to the MFSA including the power to issue guidelines and directives to operators in the sector as well as to negotiate with market participants on an individual basis with the aim of providing the necessary licences to operate. In view of the professional nature and investor base of PIFs, the MFSA offers a streamlined and rapid processing procedure for licence applications. The Authority is also mindful of the importance of providing licence holders with the freedom to innovate and to develop new products to meet the changing needs to the market. The overall objective of the Authority is to reduce to an acceptable minimum the information and documentation needed to establish a PIF.

Maltese Law is very clear in terms of the necessity for a PIF to operate in or from Malta (including the use of Malta as a base) to hold the necessary licence provided by the MFSA.

Versatility of a Malta Professional Investor Fund

PIFs can be used for a variety of investment strategies, and can hold different assets such as securities, bonds, derivatives, money instruments, debt instruments, other funds, tangible movables and immovable property. This flexibility in terms of investment strategy and underlying asset holding makes PIFs ideal to be used as a fully-fledged hedge fund or private equity fund.

It is important to note that promoters of Malta registered PIFs have the option to utilize a self-managed fund with a Fund Manager operating from outside Malta. Furthermore, Malta registered PIFs can also be used for umbrella or multi-class funds through the utilization and protection afforded by segregated cell companies which enjoy distinct legal personalities. 

Integritas is a reliable partner for financial services in Malta. Professional staff will assist you in understanding your most efficient taxation and investment solutions.

114/3 The Strand, Gzira, Malta | Tel.: [+356] 2385 0611 | Fax.: [+356] 21 334405 | Email: info@integritas-trustees.com

Integritas Group Ltd is authorised by the MFSA under the Trusts & Trustees Act