In 2016 the MFSA consolidated the type of funds that can be set up in Malta. Prior to the changes there where twelve fund frameworks available to promoters in Malta. Details of the fund frameworks prior and following these changes can be found below:
These include UCITS, Non-UCITS Retail Schemes, Overseas Based Non-UCITS Retails Schemes and Retail AIFs.
As from 3 June 2016 the MFSA is not accepting any application for the licencing of the following :
- Non-UCITS Retails Schemes. Whilst no new collective investment schemes will be issued under this category, the existing licence holder have been allowed to continue operating under the previous regime;
- Overseas-Based Non-UCITS retail schemes are now required to comply with the Maltese National Private Placement Regime. The Authority will be communicating with the licence holders concerned/ the respective local representatives to ensure a smooth transition to the National Private Placement Regime. The Authority aims to completely phase out this regime by 31 December 2016;
Professional Investor Funds (‘PIFs’):
These consist of three sub-categories namely:
- PIFs promoted to Experienced Investors with a minimum investment requirement of EUR10,000;
- PIFs promoted to Qualifying Investors with a minimum investment requirement of EUR75,000; and
- PIFs promoted to Extraordinary Investors with a minimum investment requirement of EUR750,000;
As from 3 June 2016 there is one category of Professional Investor Funds promoted to Qualifying Investors. In this regards, the main change was an increase in the minimum initial investment from €75,000 to €100,000. Existing PIFs for Experienced, Extraordinary and Qualifying Investors (the latter with a minimum initial investment limit of €75,000) will continue to operate under their respective regulatory regime;
Alternative Investment Funds (‘AIFs’):
AIFs can be further subdivided into four sub-categories (other than Retail AIFs) namely:
- AIFs promoted to Experienced Investors with a minimum investment requirement of EUR10,000;
- AIFs promoted to Qualifying Investors with a minimum investment requirement of EUR75,000; and
- AIFs promoted to Extraordinary Investors with a minimum investment requirement of EUR750,000;
- AIFs promoted to Professional Investors with no minimum investment requirement;
AIFs are now either Retail AIFs or Professional AIFs. AIFs authorized in terms of the Investment Services Act can be marketed to Professional Investors as defined in MiFID and/or Qualifying Investors having a minimum investment requirement of €100,000.
The following diagram explains both the previous and the current fund framework.