Valsen Fiduciaries Funds

Malta Undertakings for Collective Investments in Transferable Securities (UCITS) Fund

The Malta Financial Services Authority (MFSA) regulates the Maltese UCITS funds under the Investment Services Act (Cap. 370 of the Laws of Malta). This Act sets out the guidelines pertaining to the application and licensing of UCITS funds and other collective investment entities in Malta.

About Malta UCITS Fund

The primary objective of a UCITS is the collective investment of capital acquired by means of an offer of units for subscription, sale or exchange and which has the following characteristics:

The investment fund or arrangement operates according to the principle of risk spreading and either:

  • The contributions of the participants and the profits or income out of which payments are to be made to them are pooled or,
  • At the request of the holders, units are or are to be re-purchased or redeemed out of the assets of the investment fund or arrangement, continuously or in blocks at short intervals or,
  • Units are, or have been, or will be issued continuously or in blocks at short intervals.

Malta UCITS Fund Legal Requirements

Requirements Description
  1. Applicable legislation

Investment Services Act (Cap. 370 of the Laws of Malta)

  1. Supervising Authority

Malta Financial Services Authority (MFSA)

  1. Corporate vehicle permitted

Investment company with variable share capital (SICAV)

A Limited Partnership (LP) whose share capital is divided into shares

Unit Trust in terms of the Trusts & Trustees Act

Contractual Fund, otherwise referred to as fond commun de placement

  1. Share capital or equivalent
    • Minimum subscription

Third-party managed: €125,000 (if formed as a company)

Self-managed: €300,000

    • Minimum investors

None

  1. Directors / Partners / Trustees
    • Minimum number

3

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

Yes

  1. Fund functionaries required
    • Custodian
 
      • Custodian required
Yes
      • Local custodian required

Yes

      • Eligible custodian

A licensed institution or any other institution acceptable to the MFSA, with a place of business in Malta.

    • Fund manager / Investment manager
      • Fund manager required
Yes
      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

A fund may be self-managed or may appoint a UCITS European management company approved by the MFSA.

    • Fund administrator
      • Fund administrator required
Yes
      • Local fund administrator required

No

      • Eligible fund administrator

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

    • External auditor
      • External auditor required
Yes
      • Local external auditor required

No

      • Eligible external auditor

An auditor must be approved by the MFSA

    • Compliance Officer & MLRO
      • Compliance Officer & MLRO Required

Yes

      • Local Compliance officer & MLRO required

No

      • Eligible compliance Officer & MLRO

The scheme must have at all times a Compliance Officer and a Money Laundering Reporting Officer.

  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

Yes

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees
    • License application fee

USD 2,500

    • Annual license fee

USD 2,500

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
None
Quarterly obligations
None
Annual obligations
Submit annual audited accounts to FSA within 4 months of the financial year end
Other obligations
None
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
None. There is no income or company tax imposed on UCITS Funds having more than 85% of their underlying assets situated outside Malta.
Withholding Tax
Withholding tax is charged at 10% – 15 % depending on the type of investment, while no withholding tax on dividends paid to non-Maltese residents.
Stamp Duty
There are no foreign exchange control restrictions.
Trades Tax Act
None
Immovable Property Transfer Restriction Act
None
Immigration Decree
None
Exchange Control Act
There are no foreign exchange control restrictions.

Benefits of a Malta UCITS Fund:

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