Malta as a fund jurisdiction
Over the last few years, Malta has firmly established itself as a prime jurisdiction for hedge funds, UCITS Schemes, investment funds, and retail funds. No longer considered as an emerging finds domicile, it offers investors a range of sophisticated investment vehicles for a range of different purposes.
But why is Malta such an attractive jurisdiction and why has it been so successful in attracting investment opportunities? Here are some of the reasons.
- Malta offers a favourable fiscal regime which has created a range of business models that would be unfeasible elsewhere.
- Malta offers sound and comprehensive regulation which both considers the needs of businesses whilst ensuring the protection of investors.
- Malta’s regulator is highly approachable and is willing to consider new ideas and structures whilst ensuring a high level of regulatory and legal compliance.
- As a fully-fledged EU Member state since 2004, Malta offers easy access to the European investments market.
- In Malta, all manner of applications is handled quickly and efficiently ensuring fast turnaround times.
- There is no requirement to have a local fund administrator and businesses have a high level of flexibility when it comes to choosing service providers.
- Malta offers the opportunity to use self-managed structures.
- Protected cell company (sub-fund) legislation makes way for the creation of ring-fenced pockets of liabilities and assets within the same legal entity.
Collective Investment Schemes
Malta provides investment fund managers with a range of vehicles that can cater to a number of investor types and strategies. The majority of these are created as SICAVs which are investment companies with a variable share capital but there is also the option of creating an INVCO (an investment company with fixed share capital), a contractual arrangement, a partnership, or a unit trust. These can all be used for a number of fund types, including but not limited to UCITS funds, retail funds, private collective investment schemes and professional Investment funds.
Professional Investor Funds
The Professional Investor fund is the Maltese hedge fund and has proven itself to be the most popular type of fund in the local market. The PIF is extremely flexible and provides fund managers with a product that is for the most part immune to investment restrictions and leverage. Therefore, a PIF can be used as a vehicle that can conduct innovative or unusual investment strategies as well as being only sold to investors that meet certain sophistication criterion.
Malta also offers a variant of the PIF that can be sold to investors with a low minimum investment amount of just EUR 10,000 subject to certain leverage restrictions.
E&S Group is able to assist with the structuring and setting up of funds as well as providing ongoing advisory services. We can provide all drafting services as well as managing relations with the applicable regulatory authorities. To find out how our expertise can help you, contact us today by sending us an email on [email protected]