Q: What is the projected time-frame for establishing an investment fund in Malta?
A: The MFSC is cognizant of the fast-paced world of investment funds and is prepared to work with fund sponsors in order to meet their proposed schedules.  In general, once an application (properly completed) is submitted to the MFSC in final form with all supportive documents attached, an investment fund would normally be approved within 6 to 8 weeks.

Q: Does Malta recognise multi-class and master-feeder structures for funds?
A: Yes.  Both Maltese law and the guidelines for funds provide maximum flexibility to promoters with regard to the structure and type of fund they wish to establish.

Q: May a Maltese fund pay a performance-based investment management fee?
A: Yes.  There are no restrictions on the types or structure of fees that may be imposed on a Maltese fund so long as a clear explanation of the particular fee structure is included in the fund's prospectus and any other materials offered to investors.

Q: May a new Maltese fund use the past performance record of its sponsor or investment manager in connection with marketing its shares?
A: Yes.  A Maltese fund may use the past performance record of its sponsor or investment manager in connection with an offer of its shares, for an indefinite period, provided the fund clearly discloses that the performance information is not that of the fund itself and includes appropriate risk warnings.

Q: May a non-Maltese investment advisor engage a local Maltese custodian and administrator to be charged with day-to-day administrative duties for the fund in Malta, while the non-Maltese advisor provides investment advisory services to the fund entirely outside of Malta ?
A: Yes.  Non-Maltese promoters and managers may delegate authority to local administrators subject to the approval of the arrangement by the MFSC.

Q: Must a Maltese investment fund use a Maltese custodian?
A: Not necessarily Non-Maltese custodians may be permitted so long as the custodian meets the same stringent requirements applicable to Maltese custodians with regard to the protection of unit-holders and the scheme's assets.

Q: Can a Maltese fund use a non-Maltese accountant?
A: Yes.  Subject to approval by the MFSC, a fund may use the services of an internationally recognised non-Maltese accountant.

Q: If a non-Maltese manager is fully regulated by a foreign governmental authority, does the manager need to supply the same information to the MFSC as a newly organised manager?
A: If a non-Maltese, foreign-regulated, investment manager wishes to establish itself in Malta, the manager will still need to be licensed by the MFSC, however during the licensing programme certain formalities may be exempted.  The extent of the exemption will depend mainly upon the level of regulation that is exercised in the primary jurisdiction.

Q: Can non-Maltese funds be sold in Malta?
A: Yes.  The Maltese financial services legislation permits the offer and sale of securities of non-Maltese companies in Malta to Maltese residents.  However, advertisements and other promotional activity must be approved by the MFSC.  In addition, the MFSC will require a Maltese agent to be appointed and licensed under the Investment Services Act, to deal with investors' queries and to provide a local point of contact.

Q: Will a Maltese investment fund be subject to any taxes in Malta?
A: No, unless the fund (except in the case of a unit trust) elects to be taxable in Malta (which would entitle the fund to treaty relief).  The rate of tax in such event would be 25% (as compared to the 35% rate generally applicable to companies and corporate entities); capital gains of a fund, however, would remain exempt.

Q: Can 'UCITS’ funds be created in Malta?
A: It is possible to create a fund in Malta that complies in all material aspects with the European Community directive on Undertakings for Collective Investment in Transferable Securities ("UCITS").  Indeed, the standard conditions that apply to public funds are drawn up to reflect many of the UCITS requirements.  However. such funds will not technically be UCITS funds for purposes of EU legislation.

Q: What relationship does Malta aspire to have with the EU?
A: The exact nature of its future relationship with the EU is the subject of ongoing discussions and negotiations presently taking place between the government and the EU.  Amongst the items for discussion is a three year transition period leading to a free trade agreement between the two parties.  While these discussions continue, Malta’s formal relationship with the EU is defined by the terms of its present Association Agreement with the EU, originally signed in 1970.  Whatever the outcome of the present negotiations, Malta’s relationship with the EU is expected to become closer in the period ahead.

Q: Does Malta and the MFSC have the appropriate infrastructure to support these services?
A: Yes.  Malta has invested much time and resources in order to establish an efficient and well-regulated financial services centre that is highly competitive with other major financial centres.  We believe that the structure and style of the MFSC allows the entire licensing process to be streamlined in order to meet the needs of financial services operators.

Q: What is the quality of legal and accounting services in Malta?
A: Malta’s local legal and accounting services providers operate at the highest level of professional standards.  There are over 300 lawyers and 500 accountants duly licensed to exercise their professions.  Many of them are organised in firms several of whom have international contacts.  All the "Big Six" accounting firms are represented in Malta.  More detailed information can be obtained on request from the Malta Financial Services Centre.

Q: Are there qualified fund custodians in Malta ?
A: Yes.  Mid-Med Bank p.l.c. and Bank of Valletta p.l.c. are licensed custodians for Collective Investment Schemes.  For information regarding the services of these custodial banks, please contact:

Mid-Med Bank p.l.c. Contact:   The Chairman Centru Ruzar Briffa Mill Street Qormi, Malta Tel: (+356) 495331 Fax:(+356)489405

Bank of Valletta Limited plc. Contact: The Chairman B.O.V Centre High Street Sliema, Malta Te1: (+356) 315798 Fax:(+356)335595

Q: Can Maltese funds be listed on the Malta Stock Exchange?
A: Yes.  Both Malta-based and Overseas-based funds can be listed on the Malta Stock Exchange.  The listing requirements for Collective Investment Schemes are available upon request.