Financial Regulatory

Regulatory risk can pose a serious threat to your business.

As governments and regulators focus on the financial sector, operators are increasingly aware that regulatory risk can pose a serious threat to the viability of their business.

Whether you are implementing or managing changes driven by new regulation, conducting a strategic project or facing a potential investigation, we are able to guide you through a fast-evolving regulatory landscape.

We also provide guidance in respect of set-up, licensing and authorisation of funds and investment services businesses through the preparation of the necessary documentation and liaison with the Malta Financial Services Authority.

Our regulatory practice specialises in securities, OTC derivatives, funds and investment services.

Funds

Malta is a popular jurisdiction for the setting up of fund vehicles of various types, including venture capital funds, private equity funds, loan funds and real estate funds.

An increasing number of promoters and managers are choosing to set-up funds in Malta as a result of quicker regulatory adaptation, the availability of high-level service providers and the relative cost efficiency, amongst other factors.

The flagship fund product in Malta is the Professional Investor Fund (“PIF”). The regulation of the PIF allows for more flexibility in respect of the investment strategy and the use of leverage. However, the fund cannot be marketed (or ‘passported’) across the Single Market and is limited to ‘Qualifying Investors’ with a minimum entry level of €100,000.

The PIF is an excellent product for start-ups looking to increase assets under management and build up a track record while slowly making the necessary arrangements to ease into the Alternative Investment Fund (“AIF”) regime which, although more onerous in every sense of the word, allows access to the Single Market.

Aside from the setting up and ongoing regulatory support to PIFs and AIFs, we also assist and advise promoters and managers on the setting-up and regulatory compliance of:

  • UCITS Funds
  • Retail AIFs
  • Protected Cell Companies
  • Notified AIFs

Investment Services

The growth of the financial services industry is partially characterised by the number of investment services providers setting up shop in Malta.

In accordance with Malta financial services legislation, the following activities require the issuance of an Investment Services Licence by the Malta Financial Services Authority:

  1. Reception and transmission of orders in relation to one or more instruments
  2. Execution of orders on behalf of other persons
  3. Dealing on own account
  4. Management of Investments
  5. Trustee, Custodian or Nominee Services
  6. Investment Advice
  7. Underwriting of instruments, or placing of instruments on a firm commitment basis
  8. Placing of instruments without a firm commitment basis
  9. Operation of a multilateral trading facility
  10. The reception, transmission and submission of a bid relating to emission allowances.

Whether you’re a fund manager, portfolio manager, investment broker, investment advisor or other investment service provider, we can assist during the set-up and licensing stage by preparing the necessary documentation and liaising with the Malta Financial Services Authority until such time as the licence or authorisation is obtained.

We also provide ongoing advisory in respect of matters of compliance while keeping you up to date with regulatory changes that can impact your business.

Contact


You have the questions. We have the answers.

Give us a call

Would you like to set up a meeting?

Drop us a line