Deminimis Alternative Investment Fund Managers (AIFMs) and third country AIFMs will soon have access to a new EU based fund structure which can offer flexibility, control and speed to market. The Malta Financial Services Authority is on track to introduce the new framework for Notified Professional Investor Funds (Notified PIFs).

A small, but strategically located jurisdiction, Malta has successfully adapted its infrastructure, services and regulation to remain attractive as an international financial hub. As the financial industry continues to push the boundaries of innovation, Malta seeks to keep pace with managers looking to bring new products to market and meet their needs in terms of service, administration and compliance.

Malta’s appeal as an alternative jurisdiction for asset and wealth managers is driven by a variety of factors. In particular, Malta provides start-ups and smaller/ medium-sized outfits looking to build track record or simply operate in a cost-effective environment with an attractive geographical location, EU membership, a highly educated multilingual workforce and also an efficient tax environment.  

Managing family wealth or venture capital in a structured manner has become more popular in recent years. The best structures to use depend on asset protection mechanisms, tax and succession planning, jurisdiction, and so on.

The desire for automation and digitisation of processes and procedural operative tasks derives from the very nature of the investment business itself. As a depositary to various types of Malta-domiciled Collective Investment Schemes (”CIS”), it is imperative to highlight the fact that a CIS is generally subject to a magnitude of different rules and obliged to comply with such rules on an ongoing basis. 

Over the years, Malta has been experiencing strong and consistent growth in its financial services industry and despite its size, is fast becoming the jurisdiction of choice. Thanks to its innovative fund structures within the alternative space as well as those targeting sub-threshold asset managers, the cost competitiveness and the regulator’s (the Malta Financial Services Authority) charter that ensures regulatory timeline efficiencies, Malta is now competing with international leaders in this space. 

Malta’s appeal as a fund jurisdiction is intrincially based on its geographical, political and legal attributes. The island’s colonial history resulted in an ad hoc corporate legal framework that compounds civil and common law practices, enabling the structuring of various investment products that satisfy the needs of fund promoters and fund investors alike.