The Investment Services Act , Chapter 370 of the laws of Malta (the “Act”) provides for a legal framework which regulates investment funds and services in Malta. Through the introduction of the Act, fund managers in Malta have been given the opportunity to choose from various corporate structures to cater for their different investment strategies. Offering a variety of investment funds allows fund managers and promoters the flexibility to adapt the use of the appropriate structure in different circumstances.
Disclaimer: This newsletter aims to provide the required information with regards to the regulatory requirements for the establishment of different investment funds in Malta. Readers of this newsletter should note that at the date of circulation of this article, the laws and regulations to which this newsletter makes reference to may be subject to further amendments which will not be reflected in this newsletter.
Definition of Professional Investor Fund (PIF):
A collective investment scheme designed for professional and high net worth investors.
A professional investor is a client who possesses the experience, knowledge and expertise to make its own investment decisions and properly assess the risks that it incurs.
Definition of Alternative Investment Fund (AIF):
A collective investment scheme which:
(i) raises capital for a number of investors, with a view of investing it in accordance with a defined investment policy for the benefit of those investors; and
(ii) which does not qualify as a UCITS fund in terms of the UCITS Directive.
Definition of Undertakings for Collective Investments in Transferable Securities (UCITS):
A retail collective investment scheme, which has as a sole object the collective investment in transferable securities or other liquid financial assets.