The Malta Financial Services Authority (MFSA) regulates collective investment schemes in Malta. The AIFM directive aims to establish common requirements for the authorization and supervision of Alternative Investment Fund Managers (AIFMs).
Key Features
The AIFM provides a harmonized regulatory framework for the activities within the EU of all Alternative Investment Funds (AIFs), including AIFMs that are not registered in any EU or EEA member state (non-EU AIFM). Specifically, the AIFM directive shall apply to:
- EU AIFMs which manage one or more AIFs irrespective whether EU AIFs or non-EU AIFs
- Non-EU AIFMs which manage one or more EU AIFs
- Non-EU AIFMs which market one or more AIFs in the EU irrespective of whether such AIFs are EU AIFs or non-EU AIFs
The principal activity of an AIFM is to engage in the management of AIFs however it may also, subject to the relevant authorization, manage UCITS for which it must at least perform the portfolio management and risk management functions. It may also perform the activities of administration, marketing and certain other limited activities related to assets of the AIFs, in the course of managing the AIFs. The MFSA may authorize an AIFM to also provide the following ancillary services:
- Discretionary portfolio management
- Non-core services comprising: Investment advice, safekeeping and administration in relation to shares of investment funds and reception and transmission of orders in relation to financial instruments
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Company, Limited partnership |
|
No |
|
Share capital or equivalent |
|
|
· Minimum paid up capital |
€125,000 plus 0.02% of the amount by which the value of portfolio of AIFs managed by the AIFM exceeds €250m (max of €10m) |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Shareholders |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
Tax Treatment
Companies incorporated in Malta are considered to be ordinarily resident and domiciled in Malta and are subject to income tax on their worldwide income. The standard rate of Maltese corporate income tax is 35%.
Duration to Set Up
About 2 months
Distinctive Benefits of Licence
- Attractive fiscal environment
- Generally fast regulatory approval environment
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers