Fund Formation and Management

MFSA’s new fund structure to strengthen Malta’s positon as domicile of choice

The Malta Financial Services Authority (MFSA) has unveiled a new framework for Alternative Investment Funds (AIFs) targeted at qualifying and professional investors.

Under the framework, the MFSA will only have to be notified about new AIFs (Notified AIFs) and full-scope fund managers will have full responsibility for the governance of their fund. The Regulator (MFSA) have already confirmed that the notification process will take up to 10 business days. The MFSA are yet to publish a list of requirements as part of the notification process.

The funds will not be authorised or approved by the regulator, in fact the MFSA will cease to provide ongoing supervision to Notified AIFs. An updated list of Notified AIFs will be provided on the MFSA’s website which the regulator considers to be in 'good standing'.

With the ever changing needs of the global financial services industry, this proves to be a positive development.