Key features of UCITS based in Malta


Setup of UCITS

Structures
Mainly open-ended. However, unit trusts, contractual funds and limited partnerships can also be used.
Regulator                  
Investment Services Act.
Permitted business
Schemes may be offered to the Malta general public and in any other EU/EEA state.
Fund Promoter
The promoter is responsible for the fund’s structure, set up, strategy and distribution. No eligibility requirements apply for the promoter of a Malta UCITS.
Corporate
requirements
  • The scheme’s head office and registered office are to be both established in Malta;
  • There must be a minimum of two directors, at least one independent from the manager and the custodian;
  • Self-managed schemes shall have at minimum one Maltese resident director;
  • Local substance is a requirement, yet depends on the fund’s structure.
Custodian
Required:
  • Must be a licensed institution or such other body or association acceptable to the MFSA, with a place of business in Malta.
Administrator
Optional:
  • The manager is responsible for the administration of the scheme when the administrator is not appointed;
  • Yet where appointed, the administrator must be a recognised administrator;
  • May be different from the custodian;
  • Services may include; valuation, transfer agency and registrar, corporate secretariat and listing agent.
Fund Manager
Optional:
  • The fund may either be self-managed or managed by a company approved by the MFSA;
  • Must have satisfactory financial resources and liquidity at its disposal;
  • Managers must demonstrate sufficient and relevant experience;
  • All roles, responsibilities and experience must be described in the fund prospectus.
Investment Advisor
Optional:
  • Must have satisfactory financial resources and liquidity at its disposal;
  • Must demonstrate sufficient and relevant experience.
Compliance Officer
Required.
Money Laundering Reporting Officer
Required.
Auditor
Required:
  • Must be approved by the MFSA;
  • Held responsible for certifying the fund’s annual report and accounts, which should include an audit report.
License application
Documentation required includes:
  • Constitutional documents;
  • Prospectus and marketing documents to investors. (Note: From July 2012 Maltese UCITS were required to draw up a Key Investor Information Document (KIID) in accordance with UCITS IV rules);
  • Details on all services providers involved;
  • Agreements with the fund’s service providers;
  • Personal questionnaire and curriculum vitae of the directors;
  • Three year business plan;
  • Marketing plan;
  • Other documents which have an effect on the member’s rights.
Approval time
The approval time is dependent on factors such as the fund’s complexity and the submission of complete applications. Nevertheless, the MFSA will review the draft application and the supporting documentation, whilst providing feedback within three weeks from submission of the application.





Listing
Listing schemes may apply for a listing on the MSE.
Capital
requirement
  • Third-party managed: €125,000 (if formed as a company);
  • Self-managed: €300,000.
Reporting
requirements
  • Monthly statistical return to the MFSA;
  • Half yearly compliance reports;
  • Annual reports.
Regulatory fees
Application for a License:
  • €2,000/scheme;
  • €450/sub-fund for up to 15 sub-funds;
  • €250/sub-fund for 16 sub-funds or more;
  • €2,000/sub-fund in the form of an IC.
Supervisory fees
  • €2,500/scheme;
  • €450/sub-fund up to 15 sub-funds;
  • €150/sub-fund for 16 sub-funds or more;
  • €2,500/sub-fund in the form of an IC.
Taxation
Exempt from income and capital gains tax, subject to not investing in immovable property in Malta.
VAT
Exempt without credit.