Malta Professional Investor Funds License_Guideline

Malta Professional Investor Funds License

The Investment Services Act, 1994, provides the legal framework for the provision of the Professional Investor Funds in Malta.

Permitted Activities

A Professional Investor Fund means a special class of collective investment schemes which fall within the provisions of the Act. These funds provide a “lighter” regulatory regime and more flexibility than UCITS (Undertakings for the Collective Investment in Transferable Securities), AIFs (Alternative Investment Funds) and other funds which are also licensed by the MFSA – Malta Financial Services Authority (MFSA). PIFs are subject to minimal regulation compared to retail investment schemes.

Legal Requirements

Sr.

No

 Element Requirement(s)
Entity Requirements The entity making the application is a Malta company under the Companies Act (CAP. 386)

Company includes:

  1. A company,
  2. Limited partnerships,
  3. Unit trust or
  4. International holding companies.
Director’s Requirements Must be composed of atleast 3 directors independent from the Manager and the Custodian, approved by the Malta Financial Services Authority (MFSA). One Director must be a resident in Malta
Shareholder requirements A PIF requires a minimum two investors/Shareholders who may be individuals

or body corporates
Fund Manager The management of the AIF can be carried out internally by the AIF (self-managed AIFM) or by appointing an AIFM management company
Custodian An AIFM is required to appoint a single local independent custodian for each AIF under management
Compliance Officer The Licensee must appoint a Compliance Officer who will be responsible for ensuring the license holder’s adherence to the license conditions. Ultimate responsibility for compliance rests with the Board of Directors or the General Partners of the fund. The compliance function should operate independently of all operational and business line functions and senior or supervisory management.

The Compliance Officer may act simultaneously as MLRO.
Local Office The applicant must have premises acceptable to the MFSA. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.
Auditor The Licensee shall establish an internal audit / audit committee in order to undertake the internal audit function of the company and which shall be independent for the management of the company or outsource.
Insurance The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the MFSA.
Minimum Capital Requirements The Applicant must have the prescribed minimum paid-up capital and is able to meet the prescribed minimum net liquid capital requirement in cash or readily marketable securities.

The prescribed minimum paid-up capital is € 100,000 (Approximately USD 110,000)

Ongoing Obligations

  1. A Professional Investor Funds License is issued for a period of 5 years. On expiration of such term, the Malta Financial Services Authority may renew such licence for further 5 year periods, subject to continued compliance by the Licensee and upon payment of the renewal fee.
  2. Filing of Audited Accounts: Filing of Audited Accounts: The financial statements must be approved within 10 months from the accounting year end and must be filed with the Registrar of Companies within 10 months plus 42 days from the accounting year end. However if the 1st accounting period is longer than 12 months, then the approval and submission date need to be decreased by the number of days that the accounting period is longer than 12 months .If these deadlines are not adhered to, penalties of €25 plus €0.50c per day will apply accordingly
  3. The Licensee must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.

About Valsen Fiduciaries

Valsen Fiduciaries is a licensed independent global service provider of a broad range of fiduciary, administrative, legal, corporate secretarial and support services.

    1. Company formations and Administration
    2. Assistance with Bank Account opening
    3. Collective Investment Setup and Administration
    4. Intellectual Property Registrations and Maintenance.
    5. Trusts and Foundations setup and administration
    6. Online Payment Gateway Solutions
    7. Banking Licenses and PSP, E-Money, E- Wallet Licenses
    8. Yacht and aircraft registrations.
    9. Cryptocurrency Solutions (ICO, STO, Crypto Exchanges etc)

The Valsen Advantage

  • We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of securities dealer licenses in all major jurisdictions.
  • Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  • We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  • We have a full in-house compliance support for all compliance requirements with the regulator and service providers

Our Contact Details

Please visit us on: www.offshorelicense-regulatory.com , www.valsen-corporate.com

OR Contact us on:

  • Tel: +248 4321018
  • WhatsApp: +248 2525217
  • Skype: vf-international.com
  • Email: [email protected]

Telephone:

+248 252 5217

[email protected]

vf-international.com