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.
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.
The entity making the application is a Malta company under the Companies Act (CAP. 386)
|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|
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|
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)
- 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.
- 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
- 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.
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