Professional investor funds (PIFs) are regulated by the Investment Services Act in Malta and are regarded as a special and more flexible class of collective investment schemes. Maltese professional investor funds are licensed by the MFSA (Malta Financial Services Authority) and are subject to simplified regulations compared to other types of investment schemes. PIFs may invest in private equity, immovable property, real estate and derivatives to name just a few. PIFs may also be set up as Maltese hedge funds.
The PIF regime in Malta
Maltese PIFs are divided into three categories depending on the wealth and experience of the investors. Depending on the requirements for the investor, there are three types of professional investor funds in Malta:
- – experienced investors required to invest at least 10,000 euros or the equivalent of this amount in another currency,
- – qualifying investors – at least 75,000 euros or the equivalent in another currency,
- – extraordinary investors – at least 750,000 euros or the equivalent in another currency.
PIFs may be registered as SICAV companies, Maltese INVCO companies, limited partnerships, unit trusts or common contractual funds. The most employed type of PIF in Malta is the SICAV company. PIFs may also be established as umbrella-companies.
Licensing requirements for Professional Investor Funds in Malta
According to the Investment Services Act, all collective investment schemes in Malta, including PIFs, are subject to certain licensing requirements according to the MFSA. The license must be obtained from the MFSA by complying with the legislation and regulations for directors and officers. For PIFs established as Maltese trusts or partnerships, the trustee or the partners must be able to carry out the functions they were elected for.
Maltese PIFs may appoint service providers, but experienced investors schemes are required to appoint a custodian. PIFs are also required to appoint a local representative or a resident director depending on the type of the investment scheme.
If registered as self-managed funds, Maltese PIFs must deposit a minimum share capital of 125,000 euros and must comply with certain additional requirements.
If you want to register a Professional Investor Fund or need details about licensing requirements, please contact our company formation agents in Malta.