Investment Funds

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Malta is now considered to be a well-established jurisdiction of considerable depth and finesse when dealing with investment funds, this is due to the hundreds of hedge funds, retail finds and UCITS schemes which choose Malta as their home every year.

Maltese Investment funds

 Other factors contributed to the success in Investment Funds such as:

  • sound and sensible regulation which takes into account the needs of businesses whilst safeguarding the interest of investors
  • A low cost and favourable fiscal base which renders business models feasible where they would be unworkable elsewhere
  • An approachable regulator, willing to discuss innovative ideas whilst requiring compliance to  the highest standards
  • Ease of access to the European market for investment
  • Quick application turnaround times
  • Flexibility as to the choice of service providers, e.g. local fund administrators not being required
  • Availability of self-managed structures
  • Sub-fund (protected cell company) legislation, permitting the creation of ring faced pockets of assets and liabilities within the same legal entity

Funds Managers are offered a variety of vehicles in Malta, which cater for a broad range of investment strategies to suit the needs of every type of investor. Most investment funds are structured as SICAVs, (investment companies with variable share capital) but can also be structured as an INVCO (Investment Company with fixed share capital), a unit trust, a contractual arrangement or a partnership.  The legal structures serve as vehicles for a variety of funds type, including Professional Investment Funds, retail funds and private collective investment schemes.

The most popular investment fund type Malta offers is the Maltese Hedge Fund which forms part of the Professional Investor Fund (PIF).  PIFs can only be sold to investors who have a minimum amount of investment and satisfy a number of criteria, PIFs are very flexible and thus can be used as a vehicle through which to conduct innovative or unorthodox investment strategies.

Maltese PIFs take three different forms to suit different types of investors. These are:

  • PIFs promoted to Experienced Investors (Experienced Investor Funds);
  • PIFs promoted to Qualifying Investors (Qualifying Investor Funds);
  • PIFs promoted to Extraordinary Investors (Extraordinary Investor Funds)

Malta also offers a ‘quasi retail’ which is an alternative to the PIF, which can only be sold to ‘experienced’ investors, while the ‘quasi retail’ may be sold to investors who have a low minimum investment threshold of EUR 10,000 provide that certain leverage restrictions and broad investment limitations are adhered to.

Cypriot Investment Funds

As a European hub for financial investment , Cyprus, it has experienced an influx of fund managers, administrators and advisors choosing the  the Cypriot business environment as a highly stable and rigorous one. Chetcuti Cauchi works closely with the  Cypriot financial services regulators and represents the industry in the institute for Financial Services Practitioners. Moreover, out professionals are highly respected in their field and often requested to draft position papers and consulrtative documents to be presented to the Regulator on all aspects of Cypriot Financial Services, and regularly speak at conferences and host specialist panels and we also regularly deliver investment services-related sessions in local and international fora. This puts us at the forefront as a firm of choice for financial services solutions.

Our  Investment Funds Practice

Our Investment Funds practice focuses on the structuring and setting up of funds and on-going advice after post- licensing stage.  We help our clients with the drafting of regulatory documentation, including offering memoranda and ancillary agreements, and also manage relations with regulatory authorities.  Chetcuti Cauchi also offers its service to connect our clients with high quality personnel and service providers in the jurisdiction and also act as a primary reference point for all aspects of the project.  We particularly focus on the creation of funds which follow unconventional investment strategies or structures.

Our Investment Funds Lawyers work hand in hand with other practitioners in the firm to provide an-all-inclusive package to our clients. Our lawyers are also responsible for the set up and maintenance of a large portfolio of investment services companies and funds where we assist the clients on various aspects, including the selection of the most favourable  jurisdiction, choice of legal vehicle, and ensuring that such structures comply with all local company secretarial services for private and public companies, setting up of brick-and-mortar or online business operations assistance with the selection of external service provides, real estate advisory services and restructuring or redomicillation assistance. 

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