Malta Fund Management Company
The Maltese Investment Services Act 1994 and the rules issued thereunder provide for the setting up of fund management companies servicing collective investment schemes, whether promoted to retail investors or professional investors. A number of general rules apply to the setting up and operation of fund management companies in Malta. However, additional requirements are imposed upon fund managers providing services to UCITS funds, given that such funds target a wider variety of investors.
The corporate structure to be used by a Malta based manager is a private limited liability company. The memorandum and articles of such company should:
- Specify that the object of company is limited to acting as investment manager to collective investment schemes which are made available to professional clients or retail clients as the case may be;
- Provide for the issue of shares which may be both voting as well as non-voting shares, with the rights to receive dividends or otherwise.
The fund management company should have:
- Its head office and registered office located in Malta;
- An established place of business in Malta.
Furthermore the Malta Financial Services Authority (MFSA) usually requires that the manager should have at least 2 full time employees. However, given the flexible approach adopted by the MFSA, it may accept structures where the operations of the company are carried out differently.
The activities of the licence holder would be limited to the management of collective investment schemes, which may include the following functions:
- Investment management;
- Legal and fund management accounting services;
- Consumer inquiries;
- Valuation and pricing;
- Regulatory compliance monitoring;
- Maintenance of unit holder register;
- Distribution of income;
- Unit issues and redemptions;
- Contract settlements.