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Hedge Funds and collective investment schemes in Malta are regulated and licensable under the Malta Investment Services Act. CSB Group offers a vast experience when it comes to the provision of advisory services to fund managers and promoters in selecting the right legal form and structure for their Investment Fund.
Malta Hedge Fund Structures
Malta Fund structures provide fund managers and promoters with a high level of product flexibility. Funds may be licensed as either Alternative Investment Funds (AIFs) with the ability to passport the fund throughout the EU under the Alternative Investment Fund Managers Directive (AIFMD), the Professional Investor Fund PIF, which is the fund of choice for smaller funds (De Minimis Managers), and UCITS (Undertakings for Collective Investment in Transferable Securities). Furthermore, Malta’s framework allows for the Notified AIF or NAIF, which has been designed to reduce the time-to-market and can be registered within ten (10) days.
Professional Investor Fund (PIF)
One of the Hedge Funds licensable in Malta is the PIF. A PIF, is an efficient and flexible vehicle which allows investors to conduct highly innovative or unorthodox investment strategies. Professional Investor Funds are only open to Qualified Investors who can invest a minimum of €100,000 which must be maintained at all times. PIFs may be set up as single or umbrella funds comprising a number of sub-funds. The applicable investment threshold is determined on a ‘per scheme’ basis rather than a ‘per fund’ basis.
A PIF investing in cryptocurrencies may be established either as investment companies, limited partnerships or unit trusts. Malta Cryptocurrency Funds may invest either directly or indirectly through a trading company/Special Purpose Vehicle in cryptocurrencies. The maximum size of a PIF established as a crypto fund is of €100m or equivalent in another currency. A PIF may either be managed by a third-party manager or be self-managed. In the event of being self-managed the Portfolio Manager must have sufficient knowledge and expertise in the field of information technology, virtual currencies, DLT and other related underlying technologies.
Alternative Investor Fund (AIF)
A pan-European hedge fund structure, the AIF is tailored for the more sophisticated and professional investors. Requirements of AIFs are more onerous than PIFs but less stringent than the requirements laid out by the UCITS. AIFs benefit from EU passporting, thus can be offered to investors in any EU member state.
Notified Alterative Investment Fund (NAIFs)
A solution to reduce the time to market, a NAIF is a Maltese product aimed at providing fast-track access to market funds throughout the EU. The AIF Manager (AIFM) assumes full responsibility for the NAIF, by undertaking due diligence on the promoters and service providers. A NAIF operates through a notification by the AIFM to the competent authority. After notification, the fund can be marketed within just 10 days if the competent authority being notified is satisfied that the documentation submitted respects the relevant laws, rules and regulations.
Undertakings for Collective Investment in Transferable Security (UCITS)
UCITS Funds are liquid and transparent retail products which can be marketed and distributed freely across the EU. Malta offers a robust regulatory framework which benefit from the possibility of setting up through various legal structures.
Benefit of Malta Investment Funds
- EU regulation, keeping in mind the needs of businesses;
- Safeguarding the interest of investors;
- Approachable regulator;
- Availability of self-managed structures;
- Variety of investment vehicles.
Our Hedge Fund Services
- Meetings with the MFSA;
- Fund Offering Documentation;
- M&A, Resolutions & Other Fund related documentation;
- Assistance with the collation of all MFSA Due Diligence Documentation;
- Preparation of all MFSA Application Documents;
- Company Formation;
- Company Secretarial & Annual MFSA & ROC Compliance;
- Directorship Services;
- Introduction to local service providers (fund administrators, auditors, banks etc.);
- Offices & Residential Accommodation.
We have been using the services of CSB Group in their remit as security trustees for our recent bond issue. We have found CSB to be highly efficient and effective in their work. We will not hesitate to use their services in the future and would recommend them to any of our clients and partners seeking similar services.
The choice of CSB Group was naturally imposed when I decided to establish my private collective investment scheme in Malta. In addition to a strong overseas reputation, it is one of the three largest and probably the most serious Maltese business advisory firms. The whole Regulated Industries and Corporate Services Team is very meticulous, attentive, and all of them would be happy to bend over backwards to advance your projects. This firm and its team are the ambassadors of one of the best onshore jurisdictions in the world.
Magellan SICAV p.l.c.
We have appointed CSB Trustees & Fiduciaries Limited to be the Security Trustee for a bond issued by our company; Stivala Group Finance p.l.c. The team that we worked closely with, was efficient, reliable, and knowledgeable and we couldn’t be more satisfied with the service provided. The team always made itself available even when provided with a short notice. We are glad we have engaged their services and we would definitely recommend them.
Stivala Group Finance p.l.c.
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CSB Group has the necessary knowledge on regulated industries in Malta and can help you succeed with your financial services set-up.