Together with our financial services company Credence Corporate and Advisory Services Limited, Muscat Azzopardi and Associates advise upon the establishment or re-structuring of funds. We advise local and overseas companies or individuals on Maltese legislation relating to the creation, registration and administration of funds, and we also help clients to identify the ideal fund administration company for thier particular requirements. We also advise on Maltese legislation on the promotion of funds.

Malta's EU membership allows funds to be set up as UCITS (Undertakings for Collective Investments in Transferable Securities). Fund managers may thus benefit from the EU single passport in order to register the funds in Malta and promote such funds throughout the EU Member States without the need to obtain authorisation in any other state. Malta is also less expensive and less bureaucratic than other jurisdictions, and this has led to a considerable numbers of funds being attracted to Malta over the last couple of years.

Professional Investor Funds (PIFs) may offer their units exclusively to a specific class of investors (“Qualified Investors” or “Experienced Investors”) and may be set up as an open or closed SICAV. Maltese legislation allows self-managed funds, although the individual adviser must be licenced in Malta or in another EU jurisdiction. PIFs need not appoint local fund administrators, although this is generally advisable, but must appoint a local Director resident in Malta in order to ensure compliance with local licence conditions.

Malta offers a highly reputable onshore jurisdiction for funds, and has the advantage of a responsive and responsible regulator, the Malta Financial Services Authority (MFSA). Muscat Azzopardi and Associates recommend that clients intending to set up funds in Malta meet the MFSA prior to filing for authorization.

Apart from a local Director, funds will require a judicial representative (who may be the local Director), and an address in Malta. The application must include a draft offering document, a draft Memorandum and Articles and a Personal questionnaire for each Director. As long as all documents are correctly presented, the MFSA has committed itself to issue an “in principle” approval in seven working days, and the licensing procedure should not exceed six weeks.

There is also the possibility of redomiciliation of funds to Malta, as long as the funds are based in a jurisdiction approved by the MFSA.

Finally, as a general rule and as long as the value of any assets held in Malta does not exceed 85% of the total value of the assets held by the fund, no tax in payable in Malta on any income received.

Please do not hesitate to contact Dr. James Muscat Azzopardi on jamesma@ma-advocates.com for more information.