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

  • Corporate  vehicle permitted

Company, Limited partnership

  • Local physical office required

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

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

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