January 19, 2023

Malta as an alternative fund domicile in the EU is strengthening its competitive offer within the fund industry sector with the introduction of a new regulatory framework for collective investment schemes. In the coming months, the Malta Financial Services Authority (MFSA) will launch the Notified Professional Investor Fund (NPIF), an innovative regime only available for qualifying entities such as institutional/high net worth investors.

This decision follows the success previously experienced with the Notified AIF regime: even for a NPIF, in order to respond to the ongoing requests in terms of streamlined procedures for the set-up of investment vehicles, it will be possible to structure the fund within 10 working days from the filling of a complete notification request. This fast-track process is permittable due to the fact that the Notified PIF, as a non-retail scheme, will be subject only to a notification process and the scheme will be included in the "List of the Notified PIFs" by the regulator and therefore not licensed by the MFSA.

In addition, it is important to highlight that the due diligence exercise for the proposed NPIF will not be undertaken by the MFSA, but it will be addressed by the fund's service providers, such as a recognized fund administrator. A Notified PIF may be managed by a locally licensed De Minimis Alternative Investment Fund Managers (AIFMs), EU and EEA de minimis AIFMs and third country AIFMs from reputable jurisdictions recognized by the Maltese Authority.

This new scheme framework will surely contribute towards Malta's attractiveness as a fund domicile, thus representing another significant step in making the Maltese jurisdiction more appealing to small and medium fund managers operating on the international scenario.