Valsen Fiduciaries Funds

Malta Professional Investor Fund

The Malta Financial Services Authority (MFSA) regulates Professional Investor funds within the Investor Services Act in July of 2013. This Act sets out the guidelines pertaining to the application and licensing of Professional Investor Funds in Malta.

About Malta Professional Investor Fund

A Malta Professional Investor Fund (“PIF/s”) are a pan-European branded Investor fund created with the sophisticated and professional investor in mind. AIFs are an EU regulated product which derived as a consequence of the Professional Investor Fund Managers Directive (“PIFMD”).

Professional Investor Funds (PIFs) may opt for either a self-managed structure or an externally managed structure. 

Malta Professional Investor Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Investor Services Act (Cap. 370 of the Laws of Malta)
  1. Supervising Authority

Malta Financial Services Authority (MFSA)

  1. Corporate vehicle permitted

A limited partnership or partnership en commandite;

A unit trust, constituted by a trust deed between a management company and a trustee;

A mutual fund;

An Investor company with variable share capital (“SICAV”);

An Investor company with fixed share capital (“INVCO”).

SICAVs can also be established as umbrella funds.

  1. Share capital or equivalent

    • Minimum subscription

100,000
    • Minimum investors

None

  1. Directors / Partners / Trustees

    • Minimum number

1

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

Yes

  1. Fund functionaries required

    • Custodian

      • Custodian required

Yes

      • Local custodian required

No

      • Eligible custodian

Any other person as the authority may approve who is independent of the manager or administrator

    • Fund manager / Investor manager

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Must be in possession of Category 2 Investment Services License
    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Any licensed fund manager provided such administrator is recognized by the MFSA

    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

Foreign or local auditor satisfying conditions as may be prescribed by the Commission.

  1. Asset Requirements

    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees

    • License application fee

USD 2,000

    • Annual license fee

USD 2,000

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
Quarterly obligations
None
Annual obligations
Submit annual audited accounts to AFSA within 6 months following the end of the AIF’s financial year
Other obligations
A PIFM must ensure that certain information (described below) is available to investors prior to Investor. Any material changes to information previously given in this respect must also be communicated to investors. Meanwhile, the PIFM is required to report to the MFSA on the principal markets and instruments in which it trades on behalf of the PIFs under management as well as on the principal exposures and most important concentrations of those PIFs
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
35%
Withholding Tax
A withholding tax of reduced rate varies between 10% and 15% depending on the type of investment Income.
Capital Duty
None
Payroll Tax
None
Real Property Tax
None
Social Security
None
Value Added Tax (VAT)
VAT is not applicable to mutual funds in its entirety.
Stamp duty Act
2% or 5%
Trades Tax Act
None
Immovable Property Transfer Restriction Act
The transfer of real property is subject to a tax of 12%, imposed on the assessed value of the property or the sale proceeds, whichever is greater.
Immigration Decree
None
Exchange Control Act
There are no foreign exchange control restrictions
Foreign Earnings Act
Grants a foreign Tax credit equal to 25% of the net income allocated to the foreign income account of a company

Benefits of a Malta Professional Investor Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment