Shorter fund application process by the MFSA
The Malta Financial Services Authority has recently pledged to a shorter processing time for pending and new fund applications.
The commitment was made public at the MFSA’s latest regulatory briefing meeting, where the Authority made a strong commitment to process applications for Collective Investment Scheme licenses within strict time frames, averaging between 10 to 15 days, depending on the type of fund license the application relates to.
Grant Thornton Malta welcomed this announcement that will surely further strengthen Malta’s fund industry, which can easily be one of the Maltese financial centre’s main engines of growth.
Following the introduction of the EU’s Alternative Investment Fund Management Directive (AIFMD) that regulates both alternative fund managers and the promotion of alternative funds within the EU, Malta’s fund industry is entering a new phase in its development.
Malta’s fund industry is highly based on the success of the AIFMD which has served to attract non-EU managers to set up shop in Malta. In addition to the island’s Alternative Investment Fund (AIF) rules that allow managers to launch funds under the AIFMD, the island’s successful Professional Investor Fund (PIF) regime complements the offering, allowing fund promoters diverse structuring opportunities.
MFSA has recently concluded the reclassification process of the PIF regime categories, an initiative meant to better reflect the needs of the Malta funds industry.
The Alternative Investment Fund Managers Directive
EU AIFMs authorised under the Directive to market units or shares in their EU AIFs to professional investors in all EU Member States without needing to comply with any further local requirements.
Key benefits for Malta domiciled AIFs include:
- an exemption from income tax and capital gains tax at both the fund level and at a non-resident investor level as long as more than 85% of the value of its assets are situated outside Malta
- investment income received by the Fund is not subject to any withholding tax
- no withholding tax is due on dividends paid out to non-residents
- no tax is payable by non-resident investors when they dispose of their investment
- no stamp duty charged on share issues or transfers
- no tax on the net asset value of the scheme
Contact us today to find out more about setting up or partaking into Alternative Investment Funds or Professional Investor Funds