Malta’s popularity as a domicile of choice for funds has once again made the headlines for the consistent results reaped. The below outlines the comments of a recent report issued by the Malta Funds Industry Association.
Malta financial services industry
The financial services industry is the fastest growing sector of the Maltese economy and the funds sectors boast of the most rapid growth. To date 500 funds have opted to base themselves in Malta and obtained a licence by the Malta Financial Services Authority. It was reported that the MFSA issued 179 Collective Investment Scheme (CIS) licences during 2011 alone; of which 163 were Professional Investment Funds (PIFs), 14 Undertakings for Collective Investment in Transferable Securities (UCITS) and 2 non-UCIT funds. The net asset value (NAV) of all funds domiciled in Malta is in region of €8.5bn. Reportedly 70% of Malta domiciled funds are also administered in Malta
Malta funds regulation
Malta boasts of a fully EU compliant legal system which was carefully drafted to provide a competitive edge to funds which are established in Malta. Regulation has been drafted to rigorous standards to preserve good governance and transparency. The regulator is keen on maintaining these standards, yet is approachable and adopts a business friendly outlook. Operational costs from Malta are highly competitive and complemented by a skilled and motivated work force.
