Malta has become an internationally recognized investment funds destination because of the facilities it offers to those setting up investment companies here. The main legislation ruling over collective investment schemes in Malta are the Investment Services Act and the Commercial Law. The Maltese legislation on investment services provides for the following types of collective investment schemes:
The first type of investment funds also includes Undertakings for Collective Investments in Transferable Securities (UCITS), which can retail or non-retail.
Malta allows for all types of funds to be called collective investment schemes. Retail investment funds are:
Both types of funds can receive the authorization from the Malta Financial Services Authority (MFSA) provided that they can create and issue units and in they can be operated within or outside of Malta.
Open-ended and closed-ended retail funds in Malta can be operated by itself or by fund managers. However, fund managers will be subject to certain requirements under the Maltese legislation on investment services. The fund manager can also be an investment company based in the EU.
Our Maltese lawyers can provide you with more information on open and closed-ended collective investment schemes.
A special category among the collective investment schemes are private funds which are subject to several criteria in Malta. These are:
Maltese private investment funds do not require a license from the MFSA, as the authority will keep it in its data base.
The video below shows the types of collective investment schemes foreign investors can set up in Malta:
Not long ago, Malta enabled a new type of collective investment schemes which allow for faster incorporation. For complete information on the investment schemes market, do not hesitate to contact our law firm in Malta.
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