Licensing Requirements for Malta Funds
The legal requirement of issuing a prospectus under Maltese law arises when securities are offered to the public or admitted to listing or trading on a regulated market such as the Malta Stock Exchange.
Collective Investment Schemes which are duly licensed by the Malta Financial Services Authority may not offer any of their units to the public unless a prospectus is issued.
Prospectus for a Malta Fund
The prospectus of a Malta fund is essentially a legal document providing investors with information on the issuer. The Prospectus provide inter alia general information as regards the Scheme, the investment objectives, risks and terms of the investment involved, details of the types and main characteristics of the Units and in particular details as to the procedures and conditions for the creation, issue and sale of Units, rules for the valuation of assets, information on service providers and associated fees, charges and expenses.
The information required varies in accordance with the type of Collective of Investment Scheme. In the case of Retail Collective Investment Schemes or Funds the Investment rules which prescribe the information to be included in the Prospectus vary in relation as to whether the Scheme is an open ended Maltese Non UCITS Scheme, a Maltese UCITS Scheme or a closed ended Maltese Non UCITS Scheme.
Offering Memorandum for a Malta PIF
Where the scheme qualifies as a Malta Professional Investor Fund, the Scheme is to issue an Offering Document or Offering Memorandum to provide sufficient information to enable potential Experienced, Qualifying and/or Extraordinary Investors to make an informed investment decision. Malta PIFs targeting Extraordinary Investors are subject to the minimum level of supervision for a Fund regulated in Malta; specific rules prescribe the information to be included in the Offering Document of closed ended PIFS targeting Experienced Investors which make an offer of securities to the public.
Our Fund Licensing Services
We provide in-depth assistance with respect to the drafting of Offering Memoranda for Professional Investors Funds and UCITS. Our lawyers will not simply provide one size fits all templates that do not cater for the requirements of the product in question. Instead we seek to understand our clients' investment product in order to produce documentation that accurately reflects their intentions and satisfies the standards expected by the market and the regulator. In addition to assistance with the drafting of the documentation, we also provide detailed input on the legal implications of the various provisions, ensuring that risks are appropriately flagged and managed.
