By Adam de Domenico (pictured) – There are many reasons why managers might decide to come to Malta; its favourable tax regime, climate, inexpensive costs and more. In the last few years there’s been a good push from both managers and funds looking to set up in Malta. And whilst Malta may be considered less expensive when compared to other key fund jurisdictions, this shouldn’t be confused with the idea that its services are sub-standard. The quality of service providers here is at par with mainland Europe with a focus of professional services within the financial services industry. When it

By Dr Stephanie Micallef (pictured), Ganado & Associates, Advocates – Malta has become an attractive jurisdiction for funds, due in part, to the flexible regime for professional investor funds (“PIFs”). Under this regime, private equity funds are structured as PIFs. Currently the Malta Financial Authority (the “MFSA”), through supplementary rules, regulates only one aspect of private equity funds; drawdowns on investors’ committed funds. Requests on committed funds must be effected on a pro-rata basis amongst all relevant investors in the fund and further calls can only be made by the fund once all outstanding commitments from existing investors have been

By Chris Casapinta (pictured) – The role of fund administrators has changed quite substantially in recent times. In part because of increasing global regulatory pressures, but also in response to the larger array of products and target assets and also due to greater calls for transparency from institutional investors and managers. Administrators who want to continue servicing top managers have to shore up their operational structures to ensure that the new regulatory and market requirements are addressed efficiently. As a group, Alter Domus services the top 10 global private equity firms so the AIFM Directive was always going to be

Interview with Joseph Saliba – In May this year, two draft versions of the Directive’s Level II measures came into circulation, with the European Commission’s draft differing in several areas compared to ESMA’s advice to the Commission. This is not helping managers, who are increasingly looking for clarity from their service providers.  Joseph Saliba (pictured) is a partner at Malta-based law firm Mamo TCV Advocates. Whilst a lot of the firm’s clients (managers) are based in the EU and will be required under their domestic laws to align themselves to the Directive, other clients are established in Switzerland, and these

Interview with Gatis Eglitis – For integrated brokerage and fund platform firm, EXANTE, setting up in Malta last year was certainly a case of ‘New Kid on the Block’. Historically, the island has always been a nation of savers. The investment industry has necessarily developed to reflect this fact, where the general sentiment is one of long-term investing with low risk appetite. When you consider that EXANTE prides itself on having cutting edge technology, a co-location infrastructure, and what is, to all intents and purposes, a highly sophisticated trading infrastructure well suited to high frequency traders, their establishment on the

By Roger Buckley (pictured) – As an emerging funds jurisdiction Malta is in a strong and perhaps enviable position to mould its future as a domicile and fund administration centre with enhanced corporate governance standards. Together with compliance and risk management, decent corporate governance is a crucial pillar of fundamental importance in the investment funds industry. Moreover, shortcomings in corporate governance have been a main contributor to the majority of the recent high profile international fund scandals. The appointment of independent non-executive directors and an independent administrator strengthens and improves governance, which is of paramount importance to the integrity of

By Dominique Lecocq (pictured) & Dr Caroline Pace, partner and senior associate, respectively, Lecocqassociate – In order to get a regulatory license, an asset management company must guarantee a fit and proper organisation. Most recognised jurisdictions have set similar standards, including (i) a level of independence between shareholders and board members; (ii) a level of ‘chinese wall’ between operations, risk management and compliance; (iii) dual control and four eyes principles; (iv) good monitoring of conflict of interests. The Malta Financial Service Authority (‘MFSA’) controls the issuing of licenses and supervising asset managers and advisors operating in or from Malta. While

Interview with Ximo Vicent – Mediterranean Bank is a relatively new banking institution. Now, having focused on building out its infrastructure to meet its own business needs, the bank is looking to leverage this to support smaller funds domiciled in Malta. As a local custodian, the bank is well placed to service funds that will be required to register with the AIFM Directive, and despite catering mainly to savers, Med Bank is already carving out a niche in capital markets. As Ximo Vicent (pictured), Head of Credit & Investments, confirms: “Our infrastructure is able to support both retail and institutional