AIFMs are, however, required to set a maximum level of leverage which they may employ on behalf of each AIF they manage as well as the extent of the right to reuse collateral or guarantee that could be granted under the leveraging arrangement. Material tax issues may arise depending on the specific circumstances and considerations that may be applicable in specific scenarios and propositions. Should the investor wish to declare such income, then such Maltese resident may opt to receive the income in gross and thus would declare the capital gain made in the tax return. With new legislation on reinsurance special purpose vehicles, Malta is positioning itself to tap new markets. An investment fund that does not fall within these criteria may apply to be classified as a non-prescribed fund. In the case of funds set up as limited partnerships, general partners are jointly and severally liable for all debts of the limited partnership without limitation, whilst limited partners are not liable for any debts of the limited partnership beyond the amount contributed or agreed to be contributed and not yet paid by them.
Composition of the Fund’s Board of Directors
Specific rules may apply based on such considerations, which rules would create additional regulatory requirements that would apply to that fund. In the case of a self-managed fund, clearly this issue of independence between the fund manager and the fund does not exist since the fund will be managed by its own directors and investment committee alternative investment fund malta appointed. Where an external manager is appointed, such manager may be established in Malta or outside Malta. In the interests of simplifying the structure, it is also possible that the fund is established as a self-managed fund. Doing so alernative effectively vest responsibility for the discretionary management of the assets of the fund in the Board of Directors. In proposing this structure, the fund will need to satisfy the MFSA that the fund is capable invesgment organising and controlling its affairs in a responsible manner and shall have adequate operational, administrative and financial procedures and controls to ensure compliance with all regulatory requirements and shall provide the MFSA with all the information it may require nivestment time to time. Investmwnt the self-managed fund route is followed, the initial, paid up share capital for the scheme should not be less than EUR , or the equivalent in any other currency and the NAV of the Scheme is expected to exceed this amount on an on-going basis.
Composition of the Fund’s Board of Directors
A competitive jurisdiction for the establishment of AIFs, Malta is forging ahead. Malta continues to be a competitive jurisdiction for the establishment of Alternative Investment Funds. The Malta Financial Services Authority introduced a new application process and have committed to efficient turnaround times when reviewing fund applications. Funds and fund managers also benefit from a fiscally efficient tax framework and while other EU jurisdictions have become expensive, Malta offers numerous cost advantages including professional fees, licence and supervisory fees, cost of staff, office space, and set-up costs. One of the most recent additions to Malta’s fund framework is the Notified AIF regime, which is designed to optimize time-to-market, while also increasing cost-efficiency of the set-up for emerging managers. All rights reserved. KPMG International provides no client services.
Malta: Alternative Investment Funds 2019
Specific rules may apply based on such considerations, which rules would investent additional regulatory requirements that would apply to that fund. In the case of a self-managed fund, clearly this issue of independence between the fund invesmtent and the fund does alternatkve exist since the fund will be managed by its own directors and investment committee if altenrative. Where an external manager is appointed, such manager may be established in Malta or outside Malta.
In the interests of simplifying the structure, it is alternative investment fund malta possible that the fund is established as a self-managed fund. Doing so would effectively vest responsibility for the discretionary management of the assets of the fund in the Board of Directors. In proposing this structure, the fund will need to satisfy the MFSA that the fund alternative investment fund malta capable of organising and controlling its affairs in a responsible manner and shall have adequate operational, administrative and financial procedures and controls to ensure compliance with all regulatory requirements and shall provide the MFSA with all the information it may require from time to time.
If the self-managed fund route is followed, the initial, paid up share capital for the scheme should not be less than EUR , or the equivalent in any other currency and the NAV of the Scheme is expected to exceed this amount on an on-going basis. In cases where the fund is self-managed, the fund must have at least one Director who is an individual resident in Mslta and have experience in the field of financial services. Aoternative Advocates will be happy to assist you in identifying suitable candidates find this role.
With respect to self-managed AIFs, the MFSA shall inform the applicant in writing within 3 months of alterantive submission of a complete application, whether or not the licence has been granted.
An lnvestment document setting out the nature, structure, objectives, risks and functionaries of the AIF must be submitted to the MFSA before being circulated to investors. An AIF may be listed on the Malta Stock Exchangewhich is currently the only recognised investment exchange in Malta In doing so, the fund would aletrnative able to target certain institutional investors such as pension funds which are restricted to acquiring units in listed schemes. Where an application for admissibility to listing has been submitted concurrently with an fuhd for a Collective Investment Scheme licence, the documents submitted as part of the application for a Collective Investment Scheme licence need not be resubmitted as part of the application for admissibility to listing.
This website uses cookies to offer you a better browsing experience. By using this website, you acknowledge and consent to our use of cookies. In approving prospective Directors of a AIF, the MFSA will, as a matter of procedure, consider: their collective expertise in matters relating to AIFs; prior experience of the prospective Directors on fund boards; and knowledge on matters relating to principles of good corporate governance and regulatory issues.
External Manager Where an external manager is appointed, such manager may be established in Malta or outside Malta. Self-Managed Fund In the interests of simplifying the structure, it is also possible that the fund is established as a self-managed fund. View All News. View All Articles. Key Contacts Andrew J. Zammit View Profile. View Profile. Talk to an Expert Search for a lawyer to view their contact details:.
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Shareholding Structure
No tax on capital gains is charged for the sale of units in an investment fund by non-residents. PIFs are specifically designed to attract high-net-worth investors and are subject to a level of regulation and oversight which is relatively less stringent than that to which AIFs are subject to. This does not include reverse solicitation, which is considered to be outside the scope of the AIFMD. When an investment fund, which incestment not set up as a company, distributes profits to non-tax-exempt Maltese resident investors, tax is withheld as though the investment fund was constituted as a company. Altermative, whilst an AIF whether professional or retail may not invest in virtual currencies, a PIF may only invest in virtual currencies if it is specifically authorised and licensed to do so by the MFSA in terms of specifically applicable rules. These should at least include a description of the fund structure and all involved officers, functionaries and service providers together with their respective roles, the investment objective, policy and restrictions of the fund, risk factors, applicable fees and charges, the borrowing restrictions applicable to the fund, the manner in which fund assets are valued, investor eligibility requirements and conditions, and the terms alternative investment fund malta conditions for the subscription, holding, transfer, disposal and redemption of units in the fund.
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