Malta has established a comprehensive framework of different types of funds and investment vehicles. This in turn is supported by a sound financial services framework and attractive tax system.
Investment funds may be set up in Malta as either:
- Retail Collective Investment Schemes (CISs) (UCITS or Retail AIFs)
- Qualifying Professional Investor Funds (PIFs)
- Alternative Investment Funds (AIFs) (including NAIFs)
Malta thus offers a portfolio of fund options which may be set up through a number of innovative vehicles (including open-ended and closed-ended schemes, trusts and limited partnerships). The SICAV remains most popular type of fund structure and it may include master feeder funds and umbrella funds with segregated sub-funds.
Investment funds in Malta benefit from low setup and operational costs as well as a strong network of fund administrators. By contrast to other domiciles however, funds licensed in Malta are not required to appoint a local administrator allowing promoters the flexibility to maintain a working relationship with other existing institutions. Funds may also choose to be self-managed or to appoint external third-party management.
Through Malta’s membership in the European Union, UCITS and AIFs are able to benefit from their respective passporting regime while closed-ended schemes are able to benefit from the passporting opportunities under the Prospectus Directive.