Key Opportunities - Investment Funds & Asset Management

Malta continues to be an attractive domicile for investors and financial entities seeking a dynamic European base that is professional, practical, safe and cost effective.

AIFMD

The industry expects a further boost under the AIFM Directive with more offshore fund managers expected to move into regulated onshore jurisdictions or base at least part of their operations in the EU. Approval by any EU financial services regulator will be sufficient for all other EU regulators to allow a fund to trade across the EU. Only fully compliant managers will get regulatory approval and have open access to all of Europe’s 500 million consumers.

Call for Custodians

With Malta’s number of funds now almost 600-strong and growing, the need for more specialised banking services is growing. With currently only a few global hard-hitters and a range of boutique banks in the market, credit institutions – both big and small – will find scope to capitalise on this opportunity.

Capitalising on UCITS

The European UCITS brand is a seal of quality recognised in financial centres across the world. Malta was among the first countries to transpose the UCITS IV Directive to law and with the UCITS Management Company Passport (MCP), asset managers in one member state can manage UCITS in another on a cross-border basis as well as merge UCITS to set up master-feeder structures.

Easy Migration

Malta has already seen a significant migration of funds into the island, including an increase in the number of mirror funds. Various factors contribute to the country’s attractiveness as a location for re-domiciliation. These include the high reputation of the regulator and the fact that Malta is a low-cost jurisdiction that offers a straightforward procedure for the transfer of funds from another jurisdiction.

New Horizons in Islamic Finance

Malta, as well as the Malta Stock Exchange, is exploring possibilities of catering to Islamic Finance structures. With the relevant infrastructure already in place this is an exciting prospect for investors and issuers to launch for example sukuk structures using Malta as a hub from which to market to European investors through a cost-effective European exchange.