In an extensive report, Opalesque gives a healthy check to Malta's financial services industry, noting that Malta as a funds and finance centre is on a healthy growth path. In 2015, 112 new funds were registered and two new custodians and 22 new investment managers were licensed. The insurance gross premium was up 33.6% year on year and pension assets were up 66% year on year, with now 38 retirement schemes and 27 asset managers in that sector.
The report notes that in the early days of AIFMD, one of the main criticisms was that it was forcing regulation on investors who do not need or require the protection afforded by AIFMD and that this regulation will increase compliance costs for those type of investors that do not need or want this protection. Malta has designed a solution for these type of investors where they could, through a new regime called Notified Alternative Investment Funds structure (Notified AIFs / NAIFs) reduce their compliance costs, if they so wish because the regulation of the NAIF will be undertaken through the AIFM.
"These new breed of funds has the potential to become the vehicles of choice for the industry within the next four years. Once included in the list of notified AIFs, the fund can be passported in terms of the AIFMD and therefore marketed on a cross-border basis pursuant to the AIFMD. The new Notified AIF regime applies to not only AIFMs licensed in Malta but also to other AIFMs passporting into Malta. An influx of Notified AIF fund launches is expected already by the end of 2016."
The 2016 Roundtable discussed the characteristics and benefits of Notified AIFs and also lists the categories of AIFs which are excluded and cannot be Notified AIFs. Alongside the AIFs, which until now the authority has always regulated and supervised, Malta also offers the Professional Investor Fund (PIF) regime, which was retained for the de minimis fund managers which fell outside the scope of the AIFMD and third country fund managers. The PIF funds provide a "lighter" regulatory regime and more flexibility than UCITS, AIFs and other funds which are also licensed by the MFSA. Malta's PIF regime has been a great success. Read in this Roundtable how MFSA is currently reviewing the PIF regime.
Participants in the Opalesque 2016 Malta Roundtable included the MFSA Chairman, Prof Joe Bannister as well as Angele Galea St John, Christopher Buttigieg, Robert Higgans, Joseph Agius and Isabelle Agius.
A full transcript of the 2016 event is available on: https://goo.gl/qHaPJQ
Opalesque Malta Roundtable 2016 Discusses Fund Vehicles
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
