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MALTA

HFH legal unit are the only firm in Malta where lawyers have all trained at top ten global law firms. Contact us to learn more about the HFH Malta team.  

"As a Director and Investment Committee Member of Sarum Investment SICAV PLC, recently licensed as an Oncology Investment Fund in Malta, it is with pleasure that I recommend Hedge Fund Hotel LLP as an advisor to an applicant seeking registration in Malta. Ms Ashminder Kaur has guided us through the process efficiently and effectively from beginning to end. Moreover, I believe that her knowledge of this offshore jurisdiction and interface with key Malta Financial Services Authority personnel have expedited our approval."

Oliver de Giorgio-Miller

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HFH personnel have years of experience and expertise in Malta as it has grown into an EU location of choice for many of the start-up managers that we work with.  HFH has led in structuring and establishing funds in Malta.  Some facts about Malta: 

1.   Malta is gaining momentum as a funds jurisdiction. The recent Global Financial Centers Index named it as one of the top three financial centers likely to increase in importance over the next two to three years, while the World Economic Forums Global Competitiveness Index 2009-2010 ranked Malta 13 out of 133 countries for financial market sophistication. Funds have re-domiciled from the Caribbean (e.g. Cayman) and Europe (e.g. Gibraltar and Luxembourg)to Malta, to take advantage of comparatively low operational costs for quality service providers, responsive counter-parties, favourable tax treaties (Malta has over 50 double-tax treaties including with the US, UK and China) and good regulator responsiveness as well an EU presence.  
  2.  The Malta Financial Services Authority (MFSA) is a well regarded regulator. Details of funds domiciled in Malta can be found at www.mfsa.com.mt– “Securities” – “Collective Investment Schemes”. The number of professional investor funds has grown to over 400, an increase of 44% since 2007. HSBC, reports that the fund sector in Malta grew by 30% in 2008, 22% in 2009 and 26% in the first quarter of 2010 alone.
With establishment costs starting from EUR 20,000 (see also our "Fund Platform" which has lower costs) and competitive operational costs, the presence of strong counter-parties (e.g. top four auditors) and a good reputation, Malta provides an attractive EU alternative to Caribbean funds jurisdictions, such as Cayman and BVI, for EU managers and managers seeking to establish an EU presence.  Time zone (for ease of counterparty communication and management) and travel wise (about two hours from London), an EU fund is also a practical option for an EU based manager, in particular as certain continental EU investors no longer invest in funds based in Cayman or other Caribbean jurisdictions.   Managers of Professional Investor Funds established in Malta may also use counter-parties established elsewhere in the EU and other recognised jurisdictions to get the service provider they feel is best for them.  Managers of UCITS funds have less counter-party flexibility, though Malta does have good local counter-parties for UCITS funds as well (HSBC and Deutsche Bank have offices in Malta).
Malta Professional Investor Funds (PIF) and UCITS funds can be both self-managed by a (minimum) three person Investment Committee, or externally managed by an investment management company ("IMC"). This means that setting up an IMC is optional, in particular if your trading frequency is low and you can fly to Malta to execute trades, in which case tihs is likely to be more time and cost effective.  If you require regulatory cover in your country to promote, advise or execute in relation to your Malta fund, there are usually regulatory umbrellas in your country of residence that can provide this service while you determine if an IMC is required for you or set one up.  You can also switch between an investment committee managing your fund and an IMC managing your fund. Where you have a number of sub-funds, the change will be effective for all sub-funds.
It generally takes  8-12 weeks to set up a fund in Malta and the minimum capital requirement is EUR 125,000. In terms of PIF's (non-retail) there are three levels: minimum subscription EUR 10,000 (Experienced), 75,000 (Qualifying), 750,000 (Extraordinary). Different leverage rules apply.
While HFH operates globally and deals with managers from all parts of the world, Malta has become our jurisdiction of choice for many of the managers we see who want to have the option to market to EU investors, are sensible about costs in a difficult environment and want to have a good jurisdiction with reputable counterparties who give all managers time and attention at a higher level than may be the case in other jurisdictions.  As such, we identified Malta several years ago as an ideal start up jurisdiction and it has proven to be.  Our time spent establishing funds, with assets ranging from private equity, equity long short, derivative, FX to solar and real estate, in Malta through the years has resulted in us having detailed knowledge of the jurisdiction. However, Malta is not the right choice for all managers and the location of target investors and in cases, target assets and structure, will influence the choice of jurisdiction.  
HFH lawyers are leaders in advising on Malta funds. They would be happy to talk through your fund options with you and discuss whether Malta is the right option for you.