Investment Funds & Asset Management 2015 by CountryProfiler

Sector guides 2O15 -2O16

INVESTMENT funds & asset management A CountryProfiler Publication

About FinanceMalta

A Culture of Getting Things Done F

inanceMalta, a non-profit public-private foundation, was set up to promote Malta’s Business & Financial Centre, both within, as well as outside Malta. It brings together the resources of the industry and government, to ensure Malta maintains a modern and effective legal, regulatory and fiscal framework in which the financial services sector can continue to grow and prosper. FinanceMalta’s Board of Governors, together with the founding associations that include the Malta Funds Industry Association, the College of Stockbrokers, the Malta Bankers’ Association, the Malta Insurance Association, the Association of Insurance Brokers, the Institute of Financial Services Practitioners, and the affiliated Malta Insurance Management Association, as well as its members and staff, are committed to promoting Malta as a centre of excellence in financial services and international business.

Membership FinanceMalta offers two types of membership: Corporate and Affiliate. Corporate Membership is open to entities operating within the financial services industry, such as fund, insurance and pension management companies, while Affiliate Membership is designed for organisations and companies wishing to take advantage of the growth of Malta’s finance industry and the FinanceMalta network, including firms providing Real Estate Services, Recruitment Services, Business and Professional Services, and Media Organisations. For further information on membership categories and classification, visit www.financemalta.org.

Board Members Kenneth Farrugia (Chairman) Prof. Joe V. Bannister (Vice-Chairman) Charles Borg / Mark Watkinson Matthew Bianchi Chris J. Naudi Annalise Micallef John Huber André Borg Bernice Buttigieg (Secretary to the Board)

Benefits of FinanceMalta Membership: • Direct access to the experience and knowledge of fellow members. • Receive regular updates, newsletters, and publications on relevant issues. • Attend partner seminars, training and workshops on a wide range of specialist subjects at heavily discounted rates, with some events being complimentary. • Influence the market, regulators and law makers through FinanceMalta’s lobbying activities. • Benefit from FinanceMalta’s marketing and PR initiatives. • Regular opportunities to showcase your firm on the international scene under the umbrella of FinanceMalta. • Opportunity to publish white papers and articles on FinanceMalta’s website and to take part in topical webcast series.

FinanceMalta Leadership Team

“Over the past ten years, Malta’s financial services industry has developed from one that was primarily led by the domestic market into a truly international financial services centre, attracting many top-rated financial services firms.”

“FinanceMalta is working with all stakeholders to ensure that more qualified individuals enter the industry as the finance centre grows. We also offer training and re-training initiatives in order to help professionals remain informed.”

“We are aiming to take Malta to the next level and create a globally recognised international financial services sector that is based on our skilled workforce, a stable regulatory environment and business-friendly policies.”

Kenneth Farrugia Chairman chairman@financemalta.org

Bernice Buttigieg Head of Administration bernice.buttigieg@financemalta.org

Ivan Grech Head of Business Development ivan.grech@financemalta.org

FinanceMalta, Garrison Chapel, Castille Place, Valletta VLT 1063 - Malta E: info@financemalta.org T: +356 21 224 525 · F: +356 21 449 212

FinanceMalta

@FinanceMalta

Promoting and Fostering Malta’s Finance Centre

FinanceMalta

FinanceMaltaYT

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

CountryProfiler Ltd is a specialist publisher of country information that assists corporations managing operations across national borders with trade, investment and relocation decisions. CountryProfiler is recognised by senior business executives, government representatives, institutions and global organisations as a leading provider of informative, insightful and actionable country intelligence. Europe 64, St Anne Court, Flat 4, Bisazza Street, Sliema SLM 1642 - Malta T: +356 2034 2034 North America Suite 21-2123, Walkers Line, Burlington, Ontario L7M 42Z9 - Canada Tel: +1 905 645 1130 Fax: +1 905 963 7968

Meet the Team

Garvan Keating Regional Director keating@countryprofiler.com

Heidi Marttinen Editor marttinen@countryprofiler.com

Sonja Lindenberg Editor lindenberg@countryprofiler.com

Daniel Geraldes Business Executive daniel@countryprofiler.com

Morgane Stein Business Executive morgane@countryprofiler.com

Melissa Puglisevich Office Manager puglisevich@countryprofiler.com

Email: info@countryprofiler.com Website: www.countryprofiler.com Main Photography Fritz Grimm Additional Photography Alan Carville / Malta Stock Exchange Design Ramon Micallef - ram@box-design.net Printing Gutenberg Press, Malta Publication Date April 2015 The information included in this publication is for information purposes only and is subject to change. With regard to the licensing of a business, income generation or any other legal or accounting matters, the Publisher strongly recommends that the reader seeks the advice of an appropriately licensed professional. The Guide is meant as general information and should not be interpreted as legal advice or as a technical guide in substitution of the relevant legislation. Additional requirements may also apply. All rights reserved. Reproduction in whole or part is strictly prohibited without the written permission of the publisher. Opinions expressed in this publication are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs, or illustrations.

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FINANCEMALTA Sector guides 2O15 -2O16

Contents 1 2 4 6 7 16 18 20 22 24 26 28 30 32 34 38 42

About FinanceMalta Publisher Information Finance Industry Stakeholders Malta at a Glance International Finance Centre: A Partner for Success Key Reasons to do Business in Malta Key Facts & Figures Regulation & Legislation Professional Investor Funds (PIFs) Alternative Investment Funds (AIFs) and Managers (AIFMs) UCITS Schemes Loan Funds Service Provision: Listing, Custody, Administration and Management Key Opportunities A Guide for Doing Business in Malta Malta: A Cosmopolitan Lifestyle in the Med Who's Who: Malta Business Profiles

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Finance Industry Stakeholders Ministry for Finance www.mfin.gov.mt

Ministry for the Economy, Investment and Small Business www.economy.gov.mt

Prof. Edward Scicluna Minister for Finance

Dr Christian Cardona Minister for the Economy, Investment and Small Business

Dr José Herrera Parliamentary Secretary for Competitiveness and Economic Growth

Finance Industry Associations

Malta Association for Retirement Scheme Practitioners (MARSP)

Malta Bankers Association (MBA)

Malta Fund Industry Association (MFIA)

Malta Insurance Association (MIA)

Chairman: Bethell Codrington

Chairman: Mark Watkinson

Chairman: Kenneth Farrugia

Director General: Adrian Galea

www.maltabankers.org

www.mfia.org.mt

www.maltainsurance.org

Malta Institute of Taxation

Malta Institute of Accountants (MIA)

Malta Institute of Management (MIM)

www.maintax.org

www.miamalta.org

www.maltamanagement.com

Additional Resources

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

Malta Financial Services Authority (MFSA) www.mfsa.com.mt

Central Bank of Malta www.centralbankmalta.org

FinanceMalta www.financemalta.org

Malta Stock Exchange www.borzamalta.com.mt

Prof. Joseph Bannister Chairman

Prof. Josef Bonnici Governer

Kenneth Farrugia Chairman

Paul Spiteri Chairman

Malta Insurance Management Association (MIMA)

Institute of Financial Services Practitioners (IFSP)

Association of Insurance Brokers (AIB)

Society of Trust & Estate Practitioners (STEP) Malta

Chairman: John Tortell

President: Christopher J. Naudi

Chairman: Mark Spiteri

Branch Chair: Dr Jean-Philippe Chetcuti

www.mima-malta.com

www.ifsp.org.mt

www.aibmalta.com

www.step.org/malta

Malta Chamber of Commerce

Institute of Directors (IoD) Malta

Malta Enterprise

Malta Chamber of Advocates

www.maltachamber.org.mt

www.iod.com/malta

www.maltaenterprise.com

www.avukati.org

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International Finance Centre

Malta at a Glance

GOZO

Located in the centre of the Mediterranean, Malta is rapidly growing into one of the foremost business hubs for international financial services in the Euro-Med region.

MALTA

Wealth Management Domicile at a Glance

Inflation rate (January 2015) EU: -0.5%

6.0%

Unemployment rate (January 2015) EU: 9.8%

3.3%

IFRS

GDP Growth (2014)

Accounting Standards

Total area Maltese Islands: 316km2

Currency Euro

Number of Double Tax Treaties

€136.8bn FDI (June 2014)

Time 1 hour ahead of GMT

Sovereign Ratings

0.8%

(Fitch, 2015)

(Moody’s, 2014)

BBB+/A-2

(Standard & Poor’s, 2015)

Population 421,000 (2014)

Rain Annual rainfall 600mm

Finance Centre (2014) Contribution to GDP................................................13% Employees ....................................................... 10,000+ Companies on the register ............................. 65,000+ New registrations ................................................ 5,144 Number of new companies .................................. 5,061 Number of new partnerships .................................... 83 Time to start up a business ...............................1 week

Sunshine 300 days a year

Temperature Winter 12ºC Summer 31ºC

Redomiciled Companies

European Economic Forecast (Winter 2015)

In 2013, 111 companies transferred their domicile to Malta, which represents an increase of over 60 per cent from the previous year, 70 per cent of transferred companies were from non-EU countries while the remaining 30 per cent from EU countries.

Forecasts for Malta GDP growth (%, yoy) Inflation (%, yoy) Unemployment (%) Structural budget balance (% of GDP) Gross public debt (% of GDP) Current account balance (% of GDP)

2011

2012

2013

57 68 111

2014 3.3 0.8 6.0 -2.7 68.6 3.3

Tax rate 35%

2015 3.3 1.0 5.9 -2.4 68.0 3.5

2016 2.9 1.9 5.9 -2.2 66.8 3.6

investment funds & asset management

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International Finance Centre

A Partner for Success Country

Knowledge Economy

Recession Proof Malta stands alone as an oasis of financial prosperity in a Europe desiccated by the financial crisis. From a financial standpoint, Malta is proof that you do not have to be a big country to be a big player. Home to a population of just over 421,000 people and just 316 square kilometres in area, the island prides itself on being one of the best performing eurozone economies, registering healthy economic growth and low unemployment. Adapting and Growing As a hub for business from European and North African countries, Malta is marked by its flexibility, innovation and competitiveness. It is with these qualities that Malta has gone from strength to strength since it gained independence from Britain in 1964. In particular, Malta’s financial services industry has been a key focus of the government and a great success story in the country’s growth. Business in English International Malta uses English as an official language, alongside Maltese. Use of English is universal, making Malta instantly accessible to anyone conversant in English. Many Maltese also speak a third language, usually Italian, German or French.

Central Location Located at the centre of the Mediterranean, the Maltese Islands lie virtually midway between Europe and North Africa, some 90 kilometres south of Sicily and 300 kilometres north of Libya. This makes the island an excellent gateway for business between Europe, Africa the Middle East and Asia. The capital city, Valletta, is both the administrative and business centre of the country. Committed to Business Malta’s parliament recognises the importance of business success to the nation’s prosperity. This is why Maltese political leaders are committed to developing key industries, such as finance, ICT and aviation, as well as encouraging more direct foreign investment. Over the past years, both government and opposition have worked hand-in-hand to create the right legislative and regulatory framework for financial services firms to grow and prosper.

Economic Power Malta has posted healthy economic growth for the last four years. In 2014, the economy and the labour market continued to perform well, and the outlook for 2015/16 is favourable. Strong labour market fundamentals, recovering investment and an accommodative fiscal stance are projected to have resulted in real GDP growth of 3.3 per cent in 2014. This has also allowed Malta to maintain one of the lowest unemployment rates in Europe, hovering around 6 per cent against the EU average of 10 per cent. Diversified Economy Over the past years, Malta has diversified and thrived. Popular as a safe and sunny tourist destination for sunstarved northern Europeans, the tourism sector contributes some 25 per cent to the island’s GDP. However, a variety of service businesses have joined the traditional economic generator, and services now account for 75 per cent of Malta’s GDP. Industry accounts for 23 per cent and agriculture for 2 per cent. A Future in Services Malta has played to its strengths by establishing itself as the most successful knowledge-based economy in the Mediterranean region. Key to this success has been

3.3% GDP Growth in 2014

75%

Services sector share in Malta’s economy the growth of service-focused businesses in fields such as ICT and the booming Maltese financial services industry. Expansion of the aviation and maritime industries together with life sciences and education pave the way for a prosperous future. Strong and Healthy Banks Much of Malta’s economic growth can be attributed to the excellent regulation of banks and the financial services sector. Maltese banks also have a strong local deposit base, and the banking sector is not significantly exposed to foreign sovereign debt risks. In addition, assets held by the island’s five core banks are twice the size of Malta’s GDP, which itself is only half the EU average. Towards the Future As hard work and diligent regulation have built the foundations for Malta’s recent achievements, the country’s future wellbeing is crucially linked to its success in moving further up the value chain and finding markets for the export of high-quality products and services. One of Malta’s aims is to become the European financial centre of choice. Outside of Europe, Malta continues to build its good relations with China, with both nations keen to encourage cooperation between their financial services sectors.

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Soundest Banking System

World Economic Forum 2014-2015 Global Competitiveness Index

Finance Centre Serious Business Malta’s ascent into an international centre of repute has been one of the fastest and most remarkable growth stories in recent times. Recognised for its probusiness attitude, excellent regulation and competitive cost of doing business, Malta has become the go-to finance centre for start-ups, growthminded entrepreneurs and Fortune 500 companies alike. Europe’s Fund Gateway The fund industry is one of the finance centre’s main engines of growth. Malta hosts over 580 investment funds which have a combined net asset value of almost €10 billion. While Malta has a reputation as a jurisdiction for smaller financial services companies and start-ups, the fund sector is maturing and attracting sophisticated asset management activities. Strong Ratings and Rankings Maltese banks are some of the world’s safest credit institutions. The World Economic Forum rated the island’s banking system as the 10th soundest in its 20142015 Global Competitiveness Index. Institutions such as the International Monetary Fund, the European Commission and international credit rating agencies confirmed the sector’s robustness and resilience, while Bank of Valletta and the

parent banks of domestic subsidiaries – such as HSBC – have passed the EU-wide stress tests of recent years. Winning in Wealth Management The country is a welcoming place for high-net-worth individuals due to its mixture of innovative products, experienced professionals and strong regulatory framework. It offers all the favourite investment vehicles of wealthy clients, while allowing investors to protect their assets through the establishment of trusts and foundations. Malta is also presenting itself as a holistic lifestyle and residency destination for affluent foreigners. Pushing Growth through Captives Malta is a relative newcomer to the international insurance market, yet it has made significant strides in attracting world-class companies to its shores, including some of the largest blue-chip corporations in the world. Malta championed the introduction of innovative structures such as Protected Cell Companies (PCCs) and Reinsurance Special Purpose Vehicles (RSPVs), and has built up a reputation for being a cost-effective EU base for insurance and reinsurance providers and a highly attractive captive domicile.

Diversified International Finance Centre Insurance Banking Investment Funds Asset Management Holding & Trading Companies International Pensions Capital Markets Wealth Management Trusts & Foundations Maritime & Aviation Islamic Finance Expat Residency Financial Institutions Family Offices Foreign Exchange

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FINANCEMALTA Sector guides 2O15 -2O16

Competitiveness A Leading Centre Malta regularly receives high rankings in benchmarking reports and was named ‘Most favoured domicile in Europe’ for investment funds in the Hedge Funds Review Service Provider Rankings in 2013 and 2014. In addition, the World Economic Forum ranks Malta above average for almost every metric in financial market development. Innovation through Regulation Malta’s financial regulatory framework is among one of the most robust in the world and is fully harmonised with EU and OECD rules, while still being sophisticated enough to remain a flexible platform for the financial services industry. The proactive approach taken by the regulator – the Malta Financial Services Authority (MFSA) – has supported the country in becoming a leading financial centre in Europe. High Performance Unlike many of its EU peers, Malta’s financial services sector has not been affected by the financial crisis. While other nations were trying to minimise their losses, Malta was posting year-on-year growth. Its financial sector alone has expanded around 25 per cent annually, and the banking sector did not have to carry out any restructuring or re-capitalisation exercises.

25%

Annual expansion of Malta’s financial sector

Low-Risk Environment As a European Union member with a longestablished democratic tradition, Malta offers a veritable safe haven for investors. Liberal economic policies and a government committed to an open business environment are important factors for many investors looking for longterm stability. The Maltese tax system is the only remaining full imputation system in the EU. The system has been in use since 1948 and is fully approved by the EU and OECD. Quick Start-Up Time Malta’s financial regulator, the MFSA, has set timeframes for the approval of licence applications for financial services such as investment funds and insurance vehicles. The authority takes a diligent, risk-based approach to each licence application. This allows for the fast-tracking of applications when needed and incorporating a company in Malta takes just a few days.

EU & OECD

Approved financial services framework

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Market Access Global Business Gateway Malta’s internal market is relatively small, and the real opportunity lies in using the country as a stepping stone to markets in Europe and North Africa. Strategically located at the centre of the Mediterranean, between Europe and North Africa, Malta has historically been the link between the two continents. This is why so many investors see the benefits of using Malta as the first step towards success in surrounding markets. Single EU Passport Since becoming an EU member in 2004, Malta has experienced accelerated growth in all sectors of its financial services industry. With the introduction of passporting rights, allowing companies to establish a branch or provide services

in any other EU country, many business opportunities opened up between Malta and the EU. Establishing a business in Malta provides instant access to the EU’s internal market of over 500 million people in 28 EU economies. Easy Access to World Markets Malta also enjoys excellent relations outside of the EU, specifically with other Mediterranean nations in North Africa and the Middle East, making it an attractive base for European, American or Asian companies wishing to enter the relatively untapped markets to the south. In addition, Malta is a signatory to some 70 doubletaxation treaties, covering most of the world’s highgrowth markets facilitating international business.

Perfect Timing Malta is in a convenient time zone to do international business. The island is one hour ahead of GMT, thus matching office hours with Asia in the morning, Europe throughout the day and the US in the afternoon. This allows international business conducted from Malta to be timely and profitable. Ahead of the Curve In a changing regulatory landscape with tighter requirements, Malta offers a safe EU location with a firm but flexible regulatory framework. Malta is quick in transposing EU directives related to the financial services sector into local law. The island also works closely with other regulatory authorities to provide access to international markets and to ensure a smooth international trading environment for financial services.

GOZO COMINO

Sliema •

• St. Julians • Valletta

MALTA Malta International Airport •

Malta offers easy access to EU, African and Middle Eastern Markets

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

Infrastructure A Platform for Business As a rapidly expanding economy, Malta has consistently delivered on demands to its infrastructure. Substantial investments have created a highly sophisticated business environment. Thanks to its financial infrastructure, pro-business climate, and growing international trade and investment in new industries, Malta is well positioned to seize economic opportunities. State-of-the-Art Telecoms In overcoming its geographical limitations, Malta has built up one of the world’s best telecoms infrastructures. Currently it ranks 3rd of 144 countries worldwide for international internet bandwidth per user, as ranked by the

World Economic Forum’s Global Competitiveness Report 2014-2015. This incredible level of internet service is maintained by two satellite stations and four submarine fibre-optic links to mainland Europe. Growing Industry Cluster In growing its financial services industry, Malta’s government has the support of a vibrant community of progressive-minded officials and committed business leaders. Today, a growing business cluster is driving productivity, new business and innovation within Malta’s finance industry. There are also many entities offering expert legal and support services to local and international clients.

Network of Worldwide Connections Located on the main shipping routes, Malta has been a significant port for most of its modern history, with links to other major ports in Europe, North Africa and Asia. Malta is connected by air to almost every major city in Europe, and to key destinations in North Africa and the Middle East, most only a few hours’ flight-time away.

Affordable Office Space A wide range of office space can be found across the island, rents are reasonable and finding an office close to popular residential areas and amenities is relatively easy. Office space is available in purpose-built office blocks, as well as in converted houses and apartments, or within brand new mixed-use developments. Costs have become even more reasonable with business electricity tariffs being lowered by 25 per cent in 2015.

out of 144 countries Malta’s ranking for International bandwidth per user

World Economic Forum 2014-2015 Global Competitiveness Index

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Regulation and Legislation Robust Regulation The country’s legislation is in line with EU law and is built on best practices from other finance centres. It caters for the regulation of investment funds, banking, insurance business, pension funds, as well as investment service providers and trustees. Maltese legislation is designed to efficiently meet the needs of both the industry and the consumer and is updated continuously to reflect the latest market demands.

Efficient Regulator At the heart of Malta’s finance centre is an independent, risk-based regulator, the Malta Financial Services Authority (MFSA), which grants licences and regulates all financial activities. The MFSA ensures best practice and compliance, while the fact that it regulates all financial services allows it to streamline procedures for companies, to reduce bureaucracy and to offer lower regulatory fees.

Working in Partnership The MFSA is known for being as thorough in their regulation as they are easy to approach and associate with. The country’s small size allows direct contact with licensees, which gives the MFSA a good understanding of the soundness of the licence holders. The MFSA establishes constructive working relationships with companies investing in Malta, which helps ensure a smoother start up and full compliance with all regulatory standards.

Risk-based Regulator

Integrity and Low Risk Having joined the European Union in 2004, Malta strictly adheres to EU anti-money laundering policies, insider dealing and professional secrecy laws, and its

The Malta Financial Services Authority

frameworks are aimed at attracting only international businesses of repute. Malta’s adoption of the euro in 2008 has added further stability and increased the ease of doing business across frontiers. The Right Tools The island’s legal system is rooted in both the AngloSaxon common law tradition and the Continental European Napoleonic/Justinian code. However, Maltese corporate law is firmly based on British models. The MFSA also has advantageous regulation for re-domiciling companies into and out of Malta. This allows established businesses to set up shop in the country, while preserving the continuity of company legacy, reputation and its financial track record.

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Lifestyle Living the High Life Aside from being a great place to invest and run a business, Malta also offers an excellent quality of life. With its Mediterranean environment, Malta is far more relaxed and reasonably priced than other major European finance centres. The island also has your day-to-day needs covered, with some of the best medical care in the world and an excellent education system, whether private or public. The Mediterranean at its Best Malta is abundant with beautiful, easily accessed beaches and many offices for rent enjoy a sea-view. Thanks to the warm summers and mild winters, it is easy to make the most of your free time in Malta,

whether you prefer to enjoy fine dining al fresco, relax by the sea or engage in other outdoor activities. Top Leisure Activities Malta offers much more than just the traditional ‘sun and sea’ package. Leisure activities such as horse riding, archery and bowling are available alongside traditional sports clubs such as football and rugby as well as a variety of great gyms to keep you fit. You can also pamper yourself with a fantastic selection of restaurants, spas and hotels or visit one of the many lively night spots to dance your cares away. Feel at Home It is easy to feel at home in Malta. Chances are the local supermarkets will stock

products you know from home, and the high streets and shopping malls host most of the big brand names. All your personal needs – from private banking to tax planning – are catered for. When you are ready to find a place to settle down, Malta has a wide range of properties from luxury penthouses and villas to modest apartments and office spaces, all at very reasonable rents. Relaxed Atmosphere It is easy to strike a great work-life balance in Malta. The country’s small size means that commuting times are minimal, giving you more time to enjoy the island. As one of the safest countries in the world with a very low crime rate, Malta is an ideal place for the whole family.

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Costs and Fees Value for Money No amount of sun, sea and sand can drive a business decision as much as cost. Fortunately, Malta offers great cost advantages as a finance centre, especially when compared to the rest of Europe and other leading jurisdictions. International companies often note that they receive great value for money when considering the skills and expertise present in the Maltese market. Despite its size, Malta is a compelling alternative to other larger financial hubs in Europe. Low Operational Overheads What makes Malta particularly attractive to international companies is that legal and accounting fees, as well as certain regulatory fees, are lower in Malta than in most other European jurisdictions. Overall ongoing operational costs are approximately 20-30 per cent lower than those in the UK, Germany, France, Belgium, the Netherlands and Luxembourg. This means companies can offer their services to clients at an attractive cost rate. Fiscally Efficient Framework Malta offers a tax-friendly base for financial services companies, operating a full imputation tax system. While all companies pay tax at a rate of 35 per cent, certain shareholders are entitled to refunds for the tax paid by

the company and there is no withholding tax on dividends. In addition, companies benefit from a wide network of double tax treaties. This combined with a number of other incentives make the costs of doing business in Malta more than affordable. Low Living Expenses Malta has one of the lowest costs of living in the EU. Rents are cheaper than in most other European countries, and apartments are often fully furnished. Public transport and taxi fares are also lower. Some household and personal care items can be more expensive in Malta as the majority of products are imported, yet food prices are more or less the same as in other European countries. Free state healthcare and education is available in addition to private clinics and schools. Competitive Personal Tax Rates Salaries in Malta are usually one-third lower than in the more established finance centres. Nevertheless, the purchasing power of Maltese people is much stronger thanks to the countryâ&#x20AC;&#x2122;s lower living cost and competitive personal tax rates. Individuals are charged on their income at progressive tax rates up to a maximum of 35 per cent. However, for 2015, Malta reduced the top rate of income tax for those who earn less than â&#x201A;Ź60,001 to 25 per cent.

20-30% Operational costs are 20-30% lower in Malta than in other finance centres

15% Highly qualified foreign professionals can benefit from a flat tax rate of 15%

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Advice and Assistance Outstanding Human Capital Malta’s drive to become a global financial services centre has helped generate around 10,000 jobs in this sector. With 60 per cent of Maltese students going on to further education, the island has a highly educated and multilingual pool of talent from which to hire. Malta is continually cultivating the right talent, with more University of Malta graduates coming

from the economy and management faculty than any other in 2013-2014. Established Service Providers Malta has both a proud tradition of family-run financial services firms, as well as being home to offices of ‘The Big Four’ – Deloitte, KPMG, EY and PwC. In addition, a large number of law firms operate on the island, most being part of international networks such

10,000+ Employed in international financial services in Malta

as Lex Mundi and Lexis Nexis and regularly ranked on Chambers, MartindaleHubbell or other similar institutions. Malta also provides an array of corporate service providers offering solid business advisory and back-office support. Finely Honed Skills Service companies in Malta are efficient and have developed expertise in key areas such as captive insurance, funds, trusts and wealth management. The island’s support services are top class, and professionals of the same calibre of those in London, Dublin or Luxembourg are easily found. To ensure that growth can be sustained, Malta is eager to expand its pool of highly specialised professionals.

Attracting Foreign Talent To attract further expertise in core sectors such as financial services, Malta offers a reduced 15 per cent flat tax rate to highly qualified persons in key positions within those industries. The island’s laws on immigration are in line with the European Union’s visa obligations for foreign nationals, and EU and European Economic Areas (EEA) citizens are free to work and reside in Malta. Multilingual Services The British influence is clear in the work ethic present in Malta, and aside from English and Maltese most locals also speak Italian, French or German. Malta has a vast pool of multilingual talent in the form of professional expatriates from all over the world.

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Key Reasons to do Business in Malta Flexible regulation, transparency and good governance have long been some of Malta’s key advantages, as well as its status as a cost-effective domicile for funds, asset managers, fund administrators and for custodians catering to the thriving fund industry.

An Increasing Portfolio of Fund Options Retaining its popular Professional Investor Funds (PIF) regime and the creation of a new regime for Alternative Investment Funds (AIFs), is one of the biggest recent developments in Malta’s fund landscape – and today Malta continues to offer PIFs, with the addition of AIFs. The PIF regime is also a very attractive structure for non-harmonised Funds of 1 and Family Office Funds. Malta’s legislation also provides for the setting up of UCITS (Undertakings for Collective Investment in Transferable Securities) and non-UCITS retail funds.

Innovative Vehicles Maltese-registered funds can be formed in a number of possible vehicles, including open-ended and closed-ended corporate entities, trusts and limited partnerships. The investment company with variable share capital (SICAV) is to date the most widely used vehicle, particularly in the non-retail sector and it can be structured to include master feeder funds and umbrella funds with segregated sub-funds. Welcoming Fund Platforms A new vehicle was added to Malta’s repertoire of cellular fund vehicles in 2012, called the Recognised Incorporated Cell Company (RICC). Directly targeting fund platform providers, this is a structure which allows the RICC to provide, in exchange

for payment of a platform fee, certain administrative services to its Incorporated Cells (ICs). The range of permitted administrative services for RICCs covers the typical platform type services, such as assistance in setting up ICs, assistance in selecting and contracting with external service providers, standardisation of documentation for the IC as well as other ancillary services. The permitted administrative services, coupled with the requirements that each IC has the same registered office as the RICC and has at least one director in common with the RICC, makes this an intriguing business model for both existing and prospective fund platform providers. As the RICC is itself a separate company, its shareholders can benefit

from Malta’s tax regime for limited liability companies. Flexible and MarketDriven Regulation Malta has established a comprehensive regulatory framework for the registration and marketing of all types of funds and investment vehicles. Malta’s financial services framework and tax laws are up to date with EU directives and in line with EU requirements, while the regulator, the Malta Financial Services Authority (MFSA) performs its regulatory function in a constructive manner. Operators based in Malta cite the licensing process with the MFSA as being quick, thorough and efficient. The MFSA also practices an ‘open-door’ policy which allows fund promoters to constructively engage in the licensing process.

investment funds & asset management

Alternative Investment Funds

FINANCEMALTA Sector guides 2O15 -2O16

Professional Investor Funds

FUNDS Retail non-UCITS

UCITS

Recognised Incorporated Cell Company

Free Choice of Management Style Malta allows for funds to opt for the self-managed route as an alternative to external third-party management. Self-managed funds have to appoint an in-house investment committee, which is expected to hold the majority of its meetings in Malta. The investment committee of a PIF may delegate the day-to-day investment management of the assets of the fund to an internal or thirdparty portfolio manager. Freedom to Use Foreign Administrators Another advantage the finance centre holds over established domiciles is that funds licensed in Malta are not required to appoint a local administrator. This

non-protectionist approach gives promoters the flexibility to work with institutions with which they have already established a business relationship. Nevertheless, a high percentage of funds opt to have a Maltese administrator - a clear testament to the high quality of service provided by local administrators such as Valletta Fund Services, Citco, Apex, Custom House, Praxis and TMF. High-Profile Industry Cluster A strong network of fund administrators, as well as a number of other prominent service providers, has set up in Malta and together with local players they have built up a comprehensive industry cluster. Around 70 fund management companies as well as the

top four accounting firms operate in Malta. Global custody service providers such as Deutsche Bank, Citco, Sparkasse Bank and Custom House have a presence in Malta, with new international custodians moving in to cater to the booming fund industry. The country’s legal firms are well-versed in the setting up corporate vehicles, the preparation of offering documents or the regulatory procedures for licensing, and most are part of international networks such as Lex Mundi are regularly ranked on Chambers, Martindale Hubbell or similar. Low Set-up and Operational Costs Malta is a cost-competitive jurisdiction in terms of both fund set-up fees and ongoing fees, compliance costs, as well as operating costs pertinent

to the functionaries of the fund and related services. This makes the island an attractive outsourcing location for back and middle office functions. The cost of high-quality staff is still well below Western European levels and professional fees are also significantly lower. Passporting Opportunities for Funds and Fund Managers EU membership in 2004 and the subsequent adoption of the euro in January 2008 were the initial catalyst for the development of Malta’s fund industry. The finance centre’s regulatory framework was approved by the EU and passporting rights for UCITS were introduced.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Key Facts and Figures The fund industry and infrastructure in Malta has continued to build up, with the MFSA licensing new Collective Investment Schemes (including sub-funds) on a regular basis.

Net Assets • Total net assets of funds domiciled in Malta (June 2014): €9.7 billion

Management of Collective Investment Schemes (June 2014)

• Professional Investor Funds (PIF) total net asset value (June 2014): €6.6 billion

• Over 38 per cent of funds (including sub-funds) domiciled in Malta were managed by Maltabased fund managers

• UCITS funds total net asset value (June 2014): €2.42 billion

• Around 43 per cent of funds were managed from outside Malta

• Retail Non-UCITS funds total net asset value (2013): €0.7 billion

• Self-managed funds accounted for over 18 per cent of the funds (including sub-funds)

580+

investment funds with combined NAV of €9.7 billion

€6.6bn PIFs total net asset value (June 2014)

74%

of the funds domiciled in Malta use local administrators

€2.4bn UCITS funds total net asset value (June 2014)

Administration of Collective Investment Schemes (June 2014) Around 74 per cent of funds were administered in Malta, while 26 per cent of the funds were administered outside Malta

1st place

Europe’s favoured fund domicile Hedge Fund Review’s 2013 and 2014, Service Provider Rankings

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

€9.7 billion Total net assets of funds domiciled in Malta (June 2014)

Collective Investment Schemes ■ Private ■ PIFs ■ PIFs of which ICs ■ UCITS ■ Retail Non-UCITS

The sector in figures (2014)

581 70 27 33 33

investment funds

fund managers

fund administrators

New licences 2012

128

Private 0 PIFs 115 PIFs of which ICs 2 UCITS 9 Retail Non-UCITS 2

New licences 2013

135

Private 2 PIFs 106 PIFs of which ICs 9 UCITS 18 Retail Non-UCITS 0

New licences 2014 (until September 2014)

Private 1 PIFs 69 PIFs of which ICs 6 UCITS 11 Retail Non-UCITS 0

retirement schemes

funds listed on the Malta Stock Exchange

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Regulation & Legislation A constantly updated regulatory framework, reduced bureaucracy and streamlined prudential supervision are the foundations of Maltese regulatory landscape. With the motto ‘innovation through regulation’, Malta has standards and processes in place that are built on the industry’s best practice.

Types of Legal Forms • Investment Companies (SICAV and INVCO) • Incorporated Cells • A contractual fund • A limited liability partnership • A unit trust The Regulator The Malta Financial Services Authority (MFSA) is the single regulator of all financial services in Malta. The MFSA’s approach to regulation and supervision is based on principles rather than on rules and is proportionate to the size and nature of the business, without undermining investor protection. The country’s small size allows a direct contact with all licensees, which gives the MFSA a good understanding of the soundness of the licence holders. Fund promoters are encouraged to meet with the regulator prior to applying for the authorisation of a fund to discuss the application of regulations. In particular, if fund structures are complex, promoters find the accessibility of the MFSA beneficial and value the opportunity of face-to-face meetings.

Investment Services Act The Investment Services Act (ISA), and its subsidiary legislation, is the principal legislative enactment governing the fund industry in Malta. It provides and establishes the legal basis for the licensing and regulation of investment services and collective investment schemes. The regulatory framework is contained in the Investment Services Rules. They further explain the scope and contents of the ISA, set out the application procedure and highlight the standard licence conditions that will be applied to a licensed entity. All legislation and regulations are published in English. Licencing Collective investment schemes domiciled in Malta require a licence from the MFSA. Similarly, managers, investment advisors, custodians and prime brokers establishing operations in Malta need to apply for the appropriate investment services licence under the Investment Services Act. On the other hand, fund administrators intending to provide administrative services need to apply to the MFSA for a recognition certificate. When considering an application for an investment services licence or a collective investment scheme licence, the MFSA takes into account the reputation and suitability of the applicant and of all other relevant parties closely connected with the scheme. A licence will only be issued if the MFSA is satisfied

the scheme will comply with the relevant regulations and that its directors, officers, trustees, or general partners, are fit and proper persons to carry out the functions required of them. Supervision Once licensed, an entity is subject to ongoing supervisory requirements. A scheme is bound by general reporting requirements such as the filing of an annual return, audited financial statements and income tax return. Retail funds also have to submit half-yearly reports, an annual report (including audited financial statements), regulatory statistical returns and compliance reports. Re-domiciliation of Funds Malta has legislation in place allowing the redomiciliation of corporate bodies. This means that a fund established as an investment company in another jurisdiction may continue to exist in Malta under certain conditions and does not need to wind up in its country of incorporation. The process is seamless because the Maltese regime allows funds to have administrators and custodians based in other jurisdictions which are recognised by the MFSA. Unlike some other jurisdictions, Malta also provides a clear exit route and allows funds to domicile out of Malta should the promoters wish to do so.

investment funds & asset management

The reputation and suitability of the applicant and all other parties involved in the scheme The promotion of competition and choice

MFSA FOCUS

The protection of Maltaâ&#x20AC;&#x2122;s reputation

The experience and track record of all parties involved in the scheme

The protection of investors and the general public

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Professional Investor Funds (PIFs) An overwhelming majority of funds in Malta are Professional Investor Funds (PIFs), which are typically in the form of open-ended public or private limited liability investment companies with variable share capital (SICAVs). Voted the best European Fund Domicile by Hedge Fund Review in both 2013 and 2014, the island’s successful PIF regime will continue to be a popular choice for both EU and non-EU alternative fund managers.

Types of Professional Investor Funds A Professional Investor Fund (PIF) is a collective investment scheme in terms of the ISA. There are three different types of PIFs: • PIFs promoted to experienced investors: with a minimum investment of €10k or equivalent, are subject to some investment restrictions, may be leveraged up to 100% NAV, must appoint a Custodian and issue an Offering Document • PIFs promoted to qualifying investors: with a minimum investment of €75k or equivalent, with no investment restrictions (other than in the case of property funds), unlimited leverage, appointment of a Custodian is not mandatory (provided assets are subject to adequate safekeeping arrangements), and must issue an Offering Document • PIFs promoted to extraordinary investors: with a minimum investment of €750k or equivalent, with no investment restrictions, unlimited leverage, appointment of a Custodian is not mandatory (provided assets are subject to adequate safekeeping arrangements) and can issue a simplified marketing document in lieu of a more detailed offering document The underlying assets in which these funds can invest range from transferable securities, private equity, immovable property and infrastructure, to the more complex asset classes pertaining to the world of debt financing and derivatives. Most Maltese PIFs are used for hedge fund set-ups.

Benefits of PIFs ▶ Flexibility: Since PIFs are not intended for the general public, but for professional or wealthy investors, they are not burdened with the restrictions usually imposed on retail funds.

▶ No Investment Restrictions: PIFs benefit from not being subject to investment restrictions (apart from PIFs sold to experienced investors, which have certain investment restrictions).

▶ Fast-Track Licensing: Provided all documents are submitted to the MFSA, the authority issues an ‘in principle’ approval within two to three months, depending on the complexity of the structure.

▶ SelfManagement: PIFs may be self-managed without the need to appoint a thirdparty manager, meaning promoters can use a selfmanaged fund without the need to have a presence in Malta.

▶ Low Entry Levels: €10,000 for experienced investors. ▶ ShariahCompliant Funds: Malta offers PIFs compatible with Islamic funding structures and financing vehicles, such as Ijarah and Murabahah funds.

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

Key Features of PIFs PIFs are regulated by the Investment Services Act and are mostly open-or close-ended investment companies, but unit trusts, contractual funds and limited partnerships can also be used. Self-managed PIFs are also allowed and the manager may also act as administrator. Experienced Investors

Qualifying Investors

Extraordinary Investors

Minimum Investment

€10,000

€75,000

€750,000

Setup Time

2-3 months

Investment Restrictions

Yes

None

Borrowing Restrictions

Up to 100% of NAV

Offering Documents

Required

Required or Marketing Document

Third Party Manager

Required or Self-Managed

Fund Administrator

Manager may delegate fund administration to third party administrator

Custodian

Required. Must be independent from fund manager.

Optional, provided adequate safekeeing measures.

Auditor

Required

Money Laundering Reporting Office (MLRO)

Required

Compliance Officer (may also act as MLRO)

Required

Listing

Optional

Self-Managed PIFs: PIFs may be self-managed without the need to appoint a third-party manager. This means promoters have the option to use a self-managed fund without the need to have a presence in Malta. The management of the assets of the fund would be undertaken by an investment committee with the day-to-day management performed by one or more internal and/or external portfolio managers. Self-managed funds are subject to particular rules regarding the composition of the board members and the investment committee, as well as share capital requirements.

Features applicable to all PIFs: Service Provider: Must be based in Malta or in a recognised jurisdiction. Local Representative: Required if all officials and service providers are established abroad. Reporting Requirements: Half-yearly (PIFs sold to experienced investors only), annual and compliance reports Application Fees and Expenses: Application fee for a preliminary indication of acceptability is €600

Application for a Licence of a PIF: €2,000 per scheme €1,000 per sub-fund Supervisory Fee: €2,000 per scheme €600 per sub-fund

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Alternative Investment Funds (AIFs) and Managers (AIFMs) Following the introduction of the EU’s Alternative Investment Fund Management Directive (AIFMD) that regulates both alternative fund managers and the promotion of alternative funds within the EU, Malta’s fund industry is entering a new phase in its development.

he AIFMD will act as a catalyst for further expansion in the coming years, attracting non-EU managers to set up shop in Malta. In addition to the newly introduced Alternative Investment Fund (AIF) regime that allows managers to launch funds under the AIFMD, the island’s successful Professional Investor Fund (PIF) regime was retained offering fund promoters diverse structuring opportunities. What is the AIFMD? The Alternative Investment Fund Managers Directive is a 2011 EU Directive regulating the marketing or the management of funds (other than UCITS) within the EU. The AIFMD and its implementing regulation, subjects fund managers within scope to an authorisation or registration requirement as well as a number of ongoing obligations including in relation to investor disclosure, regulatory reporting, appointment of a depositary and limits on remuneration. The AIFMD came into effect in all EU Member States in 2013. The AIFMD creates a passport for EU AIFMs authorised under the directive to market units or shares in their EU AIFs to professional investors in all EU Member States without needing to comply with any further local requirements. The directive could potentially introduce a passport for non-EU AIFMs/ AIFs as early as 2015.

Alternative Investment Funds (AIFs) and Managers (AIFM) The remit of the AIFMD is particularly wide due to its all-encompassing definition of AIFs, as it covers all legal forms of AIF, whether open or closedended and applies whatever the asset class invested in. AIFs are collective investment undertakings which: • raise capital from a number of investors with a view to investing it in accordance with a defined investment strategy • do not require authorisation under the UCITS Directive2. Therefore, hedge funds, private equity funds, real estate funds, venture capital funds and others all fall within the scope of the AIFMD. Authorisation: All AIFMs and AIFs (if self-managed) which do not fall out of scope or under any exemptions as set out in the directive, must be authorised by their home EU member state (where they have their registered office).

Initial Capital Requirements and Own Funds: • Self- managed AIFs €300,000 • Self-managed PIFs €125,000 • AIFM €125,000 but if the portfolio value of the AIFs managed by the AIFM exceeds €250 million, an 0.02 per cent of the amount exceeding €250 million is required. However, this amount shall not exceed €10 million and either 0.01 per cent of the portfolio value of the AIF or professional indemnity insurance cover. Required Information on each AIF: • Information on the AIF’s investment strategies • Information on where the master AIF is established if the AIF is a feeder AIF • The rules or instruments of incorporation of the AIF • Information on the arrangements made for the appointment of the custodian • Additional information in relation to information to be disclosed to investors

AIFMs and prime brokers are specifically prohibited from acting as custodians. However, the prohibition is lifted in the case of prime brokers where measures have been taken to functionally and hierarchically separate the two functions and where no potential conflicts of interest arise. Until July 2017, the entity appointed as Custodian of an AIF need not be a Maltese entity but may be a credit institution established in any other EU Member State.

Eligible Custodians: • a Maltese credit institution • a branch established in Malta of a credit institution authorised in an EU or EEA Member State • a branch in Malta of an overseas credit institution which is subject to prudential requirements at least equivalent to the requirements applicable to Maltese credit institutions • a Maltese company which is wholly owned by a credit institution Passporting: The AIFMD (provided that the liabilities provides a harmonised of such company are framework for the crossguaranteed either by a border management and Maltese credit institution marketing of AIFs within the or by an overseas credit EU via an AIFM passport. institution which is subject to prudential requirements The Custodian: An AIF at least equivalent to the managed by an AIFM is requirements applicable to required to appoint a single Maltese credit institutions) independent custodian for each AIF under management. Under • a Maltese company which is wholly owned certain conditions the MFSA by a Maltese or foreign may allow the appointment of a institution or company Category 4b custodian licensed which the MFSA deems under a lighter version of the to provide unit-holders custody framework open to with protection equivalent fund administrators and other to that provided by the licensed service providers.

investment funds & asset management

entities fulfilling the requirements listed above (provided that the liabilities of such company are guaranteed by the holding institution/company and provided that the holding institution/company has paid-up share capital of €5m or its equivalent in foreign currency • an investment firm in Malta or a branch of an investment firm established in another Member State or EEA State subject to capital adequacy requirements in accordance with the Capital Adequacy Directive and authorised under MiFID and which also provides the ancillary service of safekeeping and administration of financial instruments for the account of clients in accordance with MiFID At the end of 2013, Malta had seven MFSA-licenced custodians. However, by the end of 2014 regulator MFSA reported it was seeing an increase in applications from both new international custodians as well as existing Malta-based entities looking to expand their activities. Tax Benefits for a Malta-domiciled AIF: • an exemption from income tax and capital gains tax at both the fund level and at a non-resident investor level as long as more than 85% of the value of its assets is situated outside Malta • investment income received by the Fund is not subject to any withholding tax • no withholding tax is due on dividends paid out to non-residents • no tax is payable by non-resident investors when they dispose of

their investment • no stamp duty charged on share issues or transfers • no tax on the net asset value of the scheme Alternative Investment Fund Managers (AIFMs) The AIFMD requires all EU AIFMs to be authorised by the regulatory authority of the Member State in which they are incorporated and, subsequently to authorisation, to comply with a number of on-going obligations. In Malta, the relevant regulatory and supervisory body is the MFSA. Required Information on AIFMs • Information on the qualifying shareholders and on the amount of their holdings • The organisational structure of the AIFM • Information on the AIFM’s remuneration policies • Information on any arrangements made on delegation and sub-delegation Licensing Timeframe: Three months. Successful applicants will also be entered in a central register kept by the European Securities and Markets Authority (ESMA), with authorisation valid in all EU Member States. Remuneration: The MFSA has announced that although it has implemented ESMA’s guidelines on remuneration policies, it has decided not to transpose ESMA’s guideline that AIFMs should be required to impose equivalent remuneration policies and restrictions on its submanagers and other delegates.

FINANCEMALTA Sector guides 2O15 -2O16

AIFM Management Functions: • Portfolio and risk management • Administration duties, such as legal and fund management accounting services, customer inquiries, valuations and pricing including tax returns, regulatory compliance monitoring, maintenance of unit-/ shareholder register, distribution of income, unit/share issues and redemptions, contract settlements including certificate dispatch and record-keeping • Marketing • Activities related to the assets of AIFs, such as services necessary to meet the fiduciary duties of the AIFM, facilities management, real estate administration activities, advice to undertakings on capital structure, strategy, services relating to mergers and the purchase of undertakings and other services connected to the management of the AIF and the companies and other assets in which it has invested in The De Minimis Regime The AIFMD framework provides for a lighter or de minimis regime for small AIFMs. De minimis AIFMs are managers which, whether directly or indirectly, manage portfolios of AIFs whose assets under management collectively do not exceed the following amounts: • €100m or • €500m for AIFMs managing only unleveraged AIFs with no redemption rights exercisable within 5 years from the date of initial investment in each AIF

While AIFMD allows Member States to choose merely to register rather than authorise de minimis AIFMs, the MFSA’s policy in the interest of investors is to require authorisation as de minimis Category 2 Licence Holders. Once authorised, a de minimis AIFM will be exempt from complying with the provisions of the AIFMD with the exception of certain reporting requirements towards the MFSA such as: • the investment strategies of the AIFs under management • the main instruments in which the AIFs under management are trading • the principal exposures and most important concentrations of the AIFs under management. Any AIFM whose assets under management fall below the above thresholds may choose to opt in to the AIFMD framework. This would render it subject to all the obligations applicable to full-scope AIFMs, but would also enable it to make use of the EU passporting rights deriving from the AIFMD. Key Benefit for AIFMs: Approval by any EU financial services regulator will be sufficient for all other EU regulators to allow a fund to trade across the EU. Only fully compliant managers will get regulatory approval and have open access to all of Europe’s 400 million consumers.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

UCITS Schemes Malta was among the first countries to transpose the UCITS IV Directive and hosts a number of UCITS schemes, which have become popular due to their brand and tax efficiency. The UCITS IV provisions have further enhanced the country’s domicile appeal, making room for more growth.

Key Features of UCITS Structures: Open-ended SICAVs. However, unit trusts, contractual funds and limited partnerships can also be used. Legislation: Investment Services Act

CITS (Undertakings for Collective Investment in Transferable Securities) are harmonised European retail fund products that can operate throughout the EU on the basis of a single authorisation from one member state, provided that it follows certain notification procedures. UCITS offer a high degree of investor protection and are recognised by regulators worldwide. They can be marketed to both retail and institutional investors.

Benefits of Malta-based UCITS ▶ EU passporting rights: UCITS established in Malta can be marketed in all EU/ EEA member states. ▶ Up-to-date regulatory framework: Malta is ranked first for transposing EU directives into national law. ▶ Lower costs: Cheaper set-up and running costs. ▶ Economies of scale: Larger distribution network that can be achieved through a UCITS scheme results in a reduction in costs for investment. ▶ Structuring opportunities: Possibility to set up umbrella funds, allowing different sub-funds and share classes. ▶ Flexible regulator: The MFSA combines a high standard of regulation with an efficient response to industry needs. Every licence is subject to standard conditions. These standard conditions can be adapted to suit specific circumstances as long as standards are not compromised.

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 2 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 a third-party 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 and held responsible for certifying the fund’s annual report and accounts, which should include an audit report. License Application: Amongst others, the documents required are the: • Constitutional documents • Prospectus and marketing documents to investors. • Details on all services providers involved • Agreements with the fund’s service providers • Personal questionnaire and curriculum vitae of the directors • Three-year marketing plan • Other documents which have an effect on the member’s rights

investment funds & asset management

Approval time: Generally 2 to 3 months, but 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 support documentation, whilst providing feedback within three weeks from submission of the application. Listing: UCITs may apply for a listing on the Malta Stock Exchange. Capital Requirement: • Third-party managed: UCITS Manager’s minimum capital requirement €125,000 • Self-managed UCITS : €300,000 Reporting requirements: Monthly statistical return to the MFSA, half-yearly compliance reports and annual reports Regulatory fees: Application for a License • €2,500/scheme • €450/sub fund • None for 16 sub-funds or more Supervisory Fees: • €3,000/scheme • €500/sub fund • None for 16 sub-funds or more Taxation: Exempt from income and capital gains tax, subject to not investing in immovable property in Malta VAT: Exempt without credit

FINANCEMALTA Sector guides 2O15 -2O16

UCITS Management Company Licence Conditions Applicable To UCITS Management Companies General Requirements: The Licence Holder shall not engage in activities other than the management of UCITS, with the exception of the additional management of other Schemes which are not UCITS, but the units of which cannot be marketed in other Member States or EEA States and for which the Licence Holder is subject to the MFSA’s prudential supervision. Management of a UCITS includes the following functions: • Investment management • Marketing • Administration: • legal and fund management accounting services • customer inquiries • valuation and pricing (including tax returns) • regulatory compliance monitoring • maintenance of unit-holder register • distribution of income • unit issues and redemptions • contract settlements (including certificate dispatch) • record keeping The MFSA may authorise the Licence Holder to provide, in addition to the Management of UCITS, the following services: • management of portfolios of investments including those owned by pension funds, in accordance with mandates given by investors on a discretionary, client-by-client basis, where such portfolios include one or more of the instruments listed in the Act • as non-core services: • investment advice concerning one or more of the instruments listed in the Act • safekeeping and administration in relation to units of collective investment undertakings

Management Company passport (MCP) In the wake of the implementation of the UCITS IV Directive and the adoption of the Alternative Investment Fund Managers Directive (AIFMD) Malta has become particularly attractive to fund managers. The management company passport (MCP) under the UCITS IV directive ended the requirement that the management company needs to be established in the same country in which the UCITS is established. A Maltabased UCITS can now be managed by a UCITS Management Company established in another EU member state. The provisions of the UCITS IV Directive also enable the setup of master-feeder UCITS structures, by which one UCITS invests at least 85 per cent of its Net Asset Value in another UCITS. The advantages of this type of structuring mean that the management and administration of the master fund may be centralised in one jurisdiction allowing promoters to rationalise their platforms, build up economies of scale and potentially reduce costs to the investor. Both the UCITS IV Master-Feeder provisions and the MCP make Malta an attractive fund domicile for the set-up of new funds and for re-domiciliation. UCITS Passporting Procedure UCITS schemes based in EU member states wishing to market their units in Malta are only required to complete the notification procedure under the Investment Services Act (Marketing of UCITS) Regulations. Under UCITS IV, this process is completely regulator-to-regulator based. The UCITS only submits a notification letter and documentation to its home state regulator, which then transmits the information electronically to the MFSA within 10 working days. The home regulator will notify the UCITS of the date of transmission of the documentation and the UCITS can start marketing in Malta immediately. Conversely, Malta-based UCITS wishing to market their units outside Malta must inform the MFSA of their intention and await confirmation that the host regulators have been notified.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Loan Funds Following high demand in 2014 for the establishment of loan funds in Malta, the MFSA has launched new rules for collective investment schemes authorised to invest through loans.

The approval and licensing of loan funds is regulated by the Investment Services Act which provides for the licensing and regulation of collective investment schemes investing in any type of assets. These Loan Fund Rules apply specifically to loan funds in addition to any laws, regulations or standard licence conditions that are already applicable to Alternative Investment Funds (AIFs) or Professional Investor Funds (PIFs). The MFSA has taken as a basis the provisions of the Alternative Investment Fund Managers Directive (AIFMD) as transposed into Maltese law in the first half of 2013. The rules also draw on the relevant MFSA Banking Rules to address the specific areas of risk in a manner that ensures consistency with the Banking Act, while retaining the inherent characteristics of collective investment schemes established under the Investment Services Act.

Through the adoption of these Rules, the Authority has sought to address a number of risks that are primarily associated with lending activities. Risks to the stability of the funds are addressed through the inclusion of exposure limits. To mitigate the transmission or acquisition of unwarranted credit risk, loan funds are also required to follow strict credit assessment standards and fund managers must satisfy special competence and remuneration requirements. To minimise the risk of cross contamination with the banking sector, loan funds are restricted from lending to credit or financial institutions and must carry out credit assessments at the point of acquisition of any loan portfolios, if this is the case. Pricing risk is addressed through the application of a regularly updated variable NAV. In order to reduce liquidity risks, loan funds must be closedended or at least make use of appropriate redemption gates. Other liquidity requirements also apply and leverage is not allowed

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

Key Features of the New Regime General Requirements • Fund managers will be able to establish loan funds either as PIFs or as AIFs, depending on whether the fund manager is a de minimis AIFM or an AIFM licenced in terms of the Act, respectively • Funds are to be structured as closed-ended scheme (SICAVs with closed ended features), and will be able to invest through loans solely and exclusively to unlisted companies including SMEs • Financial institutions will not be eligible to receive financing from these Schemes • The Rulebook covers direct origination of loans by the Scheme or the acquisition by the Scheme of a portfolio of loans or a direct interest in loans which gives rise to a direct legal relationship between the Scheme as lender and the borrower Target Investors Units of these collective investment schemes shall only be marketed to: • professional investors as defined in Section I to Annex II to the Markets in Financial Services Directive (MiFID) and/or • investors who, on request, elect to be treated as professional clients as per Section II of Annex II to the MiFID and who commit to investing a minimum of €100,000 Required Service Providers Fund manager, custodian, auditor, compliance officer and money laundering reporting officer: • The Scheme will also have to make arrangements for the valuation function. In particular, the fund manager must have sufficient financial resources and liquidity available to enable it to conduct business, and such organisation, systems, experience and expertise deemed necessary by the MFSA for it to provide management services to these funds. • The fund manager must also possess the required skills and expertise to ensure that any lending decisions are made with due consideration and will also have proven experience in the area of granting of loans including credit assessment, credit provisioning monitoring and control of exposures The Rules also provide for the appointment of a single custodian for each Scheme, either as a Category 4a or Category 4b Investment Services Licence Holder. A Category 4a Investment Services Licence Holder is eligible to act as custodian to all categories of collective investment schemes. On the other hand, a Category 4b Investment Services Licence Holder (‘depositary lite’) can act as custodian of schemes which: • have no redemption rights exercisable during the period of 5 years from the date of the initial investments; and • in accordance with their core investment policy, generally do not invest in assets that must be held in custody; or • generally invest in issuers or non-listed companies in order to potentially acquire control over such companies.

Investment Restrictions The fund manager must comply with the investment objectives, policies and restrictions of the scheme as outlined in the Offering Document, particularly with regards to eligible investments, the risk profile of the fund and other terms of the offer. The use of leverage and the reuse of collateral by the Scheme are not permitted. Credit Risk • The fund manager is required to establish and implement a credit risk strategy and related policies in proportion with the scope and sophistication of the Scheme’s activities. The credit policy will establish the framework for lending and guide the credit granting activities of the Scheme, which must include a risk appetite statement and address items such as target markets, portfolio mix, structuring of credit limits, processing and reporting. • The fund manager is bound to submit for approval by its governing body, the Scheme’s strategy for the selection of risks and maximising the profits and returns. Liquidity Management • The manager is required to employ an appropriate liquidity management system and adopt procedures which enable the monitoring of liquidity risk of the scheme and to ensure that the liquidity profile of the investments of the scheme complies with its underlying obligations. • Whilst this feature is already provided for in the provisions of the AIFMD, the new Rulebook seeks to further build on this requirement using concepts normally applied in the banking sector, such as the liquid-asset proportion. • Although structured as a closed-ended scheme, the fund manager may on a yearly basis opt to redeem and cancel any shares in accordance with the terms of the offer should the fund have excess liquidity. The Rules also make provision for the application of a variable NAV. Disclosure to investors Detailed disclosure obligations modelled on the disclosure provisions prescribed in the AIFMD as well as an annual report.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Service Provision: Listing, Custody, Administration and Management The solid fund services infrastructure in Malta has continued to build up during 2014 with the issuance of more investment services licences.

Fund Listing & Depository Services Both retail and non-retail investment funds can obtain a primary or secondary listing in Malta and admission to the Official List of the Malta Stock Exchange (MSE), as well as enjoy cost-effective support services in connection with the fund’s administration. Why list a collective investment scheme? • Potentially increases investor base • Certain institutional investors (such as pension funds) may be restricted or prohibited from investing in unlisted non-retail funds. • Raises fund profile and increases its marketability • A listing on a reputable regulated market adds prestige to the investment fund and enhances its profile and marketability. • Makes information available publicly to investors • NAV and other announcements made by retail funds listed on the Malta Stock Exchange are communicated to the public

Why consider using the Malta Stock Exchange’s Central Securities Depositary (CSD) to maintain the register of the funds? • The MSE CSD already has significant experience and capacity, and has a very strong reputation in this area of operations. Registers held within the MSE CSD are the authenticated register of a security. • The close link with the MSE trading arm makes it a logical choice for listed funds and other securities to be domiciled at the CSD. • The CSD enjoys a link with Clearstream which provides international access to securities and is conducive to increasing the level of liquidity of the assets on the market. • Fund managers can obtain a competitive advantage through the use of the MSE’s low cost CSD operations and its listing (and trading) platforms whilst still enjoying access to international markets through its Clearstream link.

Fund Management Services Malta boasts a growing number of fund and asset managers, who benefit from the competitive corporate tax rate and the opportunity to service funds anywhere in the EU. Around 70 companies currently offer their services, which include investment and fund management, accounting services, valuation and pricing, regulatory compliance monitoring, distribution of income, unit issues and redemptions as well as contract settlements. Requirements for Fund Managers Local UCITS schemes: Fund manager must: • hold an investment services licence • qualify as a European or Maltese management company in terms of the Investment Services Act (UCITS Management Company Passport) Regulations. AIFs: Fund manager must: • hold an investment services licence

Benefits of Fund Management Services in Malta ▶ Office space and human resources are up to half the cost of other European jurisdictions ▶ Flexible regulatory environment ▶ EU passporting rights

• be authorised to provide fund management services as a full AIFM (Foreign-based managers are considered on a caseby-case basis by the MFSA) PIFs: Fund manager must: • hold an investment services licence • be authorised to provide fund management services (Foreign-based managers are also considered ona case-by-case basis by the MFSA) Passporting Rights An authorised EU/ EEA AIFM or UCITS Management Company may exercise its European right to establish a branch in Malta or to provide services in Malta without the requirement of obtaining authorisation under the relevant legislation, provided that the passporting provisions are complied with. Required licence: Category 2 Fund Administration Services Although funds registered in Malta are not required to appoint a local administrator, the exorbitant growth of the fund industry has attracted increasing numbers of fund administrators to set up on the island. There are currently 27 fund administrators recognised by the MFSA, among them Valletta Fund

investment funds & asset management

Services, Apex, Custom House, Praxis, IDS Group, Calamatta Cuschieri, Alter Domus, Heritage, TMF and Amicorp. While regulation allows for flexibility and choice, locally-based service providers have built up the required infrastructure and a proven track-record to provide not only post-trade services but also presettlement trade processing and support, position and trade reconciliation, fund accounting and risk management reporting. Services fund administrators usually provide include NAV calculation, reconciliations, pricing of the investment portfolio, payment of bills, transfer agency, preparation of financial statements and fund accounting, performance and compliance reporting as wells as preparation of contract notes. Benefits of Fund Administration in Malta • Highly competitive operational costs • Straightforward licensing process (only recognition required) • No capital requirements

Requirements for Fund Administrators A fund administrator may either be appointed directly by the fund or alternatively by the manager. In the latter case the manager can decide to either carry out the administration himself or to delegate the administration to an external administrator. However, administrators do not enjoy passporting rights. Setting up a Fund Administration Business in Malta Fund administrators do not require a licence in terms of Maltese law, but must apply to the MFSA for recognition. Regulatory Fees Application for Recognition to provide: • Fund Administration: €3,000 • Annual Supervisory Fee: €1,500 Request for Recognition • Fund Administrators need to submit the following documents with their request for recognition: • Completed application and personal questionnaire

•

FINANCEMALTA Sector guides 2O15 -2O16

(directors, qualifying shareholders, Compliance Officer, Money Laundering Reporting Officer) form Business plan, including a description of the Fund Administration Services to be provided and details as to whom such services will be provided Memorandum & Articles of Association, deed of partnership or equivalent constitutive document depending on the legal structure A copy of the most recent audited accounts of the applicant or in the case of a new entity, three year financial projections A chart which illustrates the internal operational structure with respect to its proposed fund administration business (this has to show names, reporting lines and roles) Details on the ultimate beneficial owners

Persons that already hold a licence from the MFSA only need to submit a business plan and a chart outlining the operational structure

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Key Opportunities Malta continues to be an attractive domicile for investors and financial entities seeking a dynamic European base that is professional, practical, safe and cost effective.

AIFMD The industry expects a further boost under the AIFM Directive with more offshore fund managers expected to move into regulated onshore jurisdictions or base at least part of their operations in the EU. Approval by any EU financial services regulator will be sufficient for all other EU regulators to allow a fund to trade across the EU. Only fully compliant managers will get regulatory approval and have open access to all of Europe’s 500 million consumers.

Call for Custodians With Malta’s number of funds now almost 600-strong and growing, the need for more specialised banking services is growing. With currently only a few global hard-hitters and a range of boutique banks in the market, credit institutions – both big and small – will find scope to capitalise on this opportunity.

investment funds & asset management

Capitalising on UCITS The European UCITS brand is a seal of quality recognised in financial centres across the world. Malta was among the first countries to transpose the UCITS IV Directive to law and with the UCITS Management Company Passport (MCP), asset managers in one member state can manage UCITS in another on a cross-border basis as well as merge UCITS to set up master-feeder structures.

Easy Migration Malta has already seen a significant migration of funds into the island, including an increase in the number of mirror funds. Various factors contribute to the countryâ&#x20AC;&#x2122;s attractiveness as a location for re-domiciliation. These include the high reputation of the regulator and the fact that Malta is a low-cost jurisdiction that offers a straightforward procedure for the transfer of funds from another jurisdiction.

FINANCEMALTA Sector guides 2O15 -2O16

New Horizons in Islamic Finance Malta, as well as the Malta Stock Exchange, is exploring possibilities of catering to Islamic Finance structures. With the relevant infrastructure already in place this is an exciting prospect for investors and issuers to launch for example sukuk structures using Malta as a hub from which to market to European investors through a cost-effective European exchange.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

A Guide for Doing Business in Malta Open Business Culture

Business Hours

As a former colony of the United Kingdom, the Maltese business environment is strongly influenced by British culture, but retains a Mediterranean flavour. Meetings and the way business is conducted may be less formal than in Northern Europe, however, scheduling appointments well in advance is necessary, and punctuality is both expected and appreciated. When it comes to business attire, men wear conservative suits and ties and women suits or dresses. When greeting new business contacts, their title and surname should be used and once a relationship has been established, often a firstname basis is appropriate.

Typical office hours are between 8.30 am and 5.30 pm Mondays to Fridays, with a one-hour lunch break between 12.30 pm and 1.30 pm. In summer, most government offices work half days. Banks are open from 8 am to 2 pm Monday to Friday, and Saturday until 12 pm. Most retail outlets are open from 9 am to 1 pm and from 4 pm to 7 pm Monday to Friday, and on Saturdays shops are generally open between 9 am and 1 pm.

Banking & Financial Services

Language Maltese and English are the official languages, with English the main language of business and laws and regulations are published in both languages. Many Maltese are also fluent in Italian, German or French.

The countryâ&#x20AC;&#x2122;s banks are able to provide a full range of personal, commercial and trade services to clients. With five retail banks and more than 20 international commercial and trade banks already operating in or from Malta, this sector has become one of the most robust on the island. HSBC and Bank of Valletta are the leading retail banks on the island, while smaller banks

such as APS, Lombard and Banif Bank help to keep the banking sector competitive and innovative. Malta is also home to specialists in trade finance such as FIMBank and BAWAG. With the growing number of insurance companies that choose to domicile in Malta, Maltaâ&#x20AC;&#x2122;s banks have also built expertise in the management of insurance company investment portfolios.

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

Investment and Trustee Services

Custodian Banking

Professional Services

Location, Location, Location

A number of investment management companies as well as asset managers from the fund industry provide services to the insurance industry. With well over 100 investment services firms licensed in Malta, corporations seeking assistance in the management of their assets are spoilt for choice. In addition, more than 100 Maltese and international fiduciary companies are licensed to offer trust and trustee services on the island.

Malta hosts global custodians as well as several other banks providing custodial services through international partners. Bank of Valletta, Mediterranean Bank, Sparkasse Bank, Deutsche Bank, Swissquote and Custom House hold custody licences in Malta. Retirement schemes are required to appoint custodians and trustees under certain conditions.

The excellence of Maltaâ&#x20AC;&#x2122;s professional services providers is internationally renowned, and the industry is well-equipped to offer support and strategic guidance. A large number of law firms operate on the island, which are regularly listed in Chambers, Legal 500 and other directories. International firms have a presence in Malta through associate links with local law firms, and many law firms have specialised in assisting international commercial and financial operators seeking opportunities in Malta. Most lawyers have obtained postgraduate degrees at major international institutions and have expertise in organisational structuring and licence applications. Businesses are also supported by a wide range of accounting and auditing practitioners from small boutique practices to the global Big Four accountancy firms, as well as various consultants providing business advisory and back office support. Professional services costs are in general significantly lower than in other Western European locations.

Maltaâ&#x20AC;&#x2122;s strategic location at the centre of the Mediterranean has always been one of the key advantages of doing business in or from Malta. As an EU member state, businesses in Malta can passport their services to all other member states, tapping into the Unionâ&#x20AC;&#x2122;s internal market of over 500 million people, while the growing markets of North Africa and the Middle Eastern countries bordering the southern coast of the Mediterranean basin are easily accessible. An insurer licensed in Malta may also cover insurable risks in non-EU countries in which persons are allowed to procure insurance directly from a Maltese insurer. Malta has an extensive network of double taxation treaties for a number of key markets. The country is a signatory to some 70 agreements, among them China, India and the USA. To provide access to international markets and to ensure a smooth trading environment for the financial services sector, Malta is working closely with other regulatory authorities.

Key Facts Short Travel Times: By air, main European hubs and North Africa can be reached in two to three hours Excellent ICT Connections: Satellite technology and high capacity fibre-optic submarine cables link Malta with Europe Major Transhipment Centre: Malta Freeport is a main regional hub

EU Member State: Passporting rights for services and companies Regional Ties: Malta has cultural and historic connections to countries in North Africa and the Middle East CET Time Zone: One hour ahead of GMT Schengen Zone: Malta is part of the Schengen area, which allows travel between member states without internal border controls

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Real Estate Malta offers a wide range of commercial and residential property for rent or purchase. Malta’s small geographical size is a benefit in terms of short commutes. The travelling time between Malta International Airport and an office is rarely longer than 20 minutes, and overall journeys are seldom longer than 40 minutes. Office space is available in purpose-built office blocks, in converted houses and palazzos, apartments or within new mixed-use developments. Malta offers enviable locations with sea views and marinas as well as prestigious landmark office complexes within

easy commuting distance of residential areas. Overall rental costs are around twothirds to half of those charged for comparable commercial spaces in continental Europe. Malta has also become one of the most sought after locations in Europe for foreign nationals to rent or purchase homes as an investment or for relocation purposes. A wide range of residential property can be found in Malta, ranging from apartments, penthouses, townhouses to villas, with or without a pool. Developments in recent years include marina and coastal complexes at the top-end of the market.

Examples of Commercial Property Rental Rates A▶ Prestigious Portomaso: €300 - €427 per m2 per annum

B▶ Prestigious SmartCity: €220 - €280 per m2 per annum

C▶ Professional Sliema / St. Julians Ta’ Xbiex / Gzira €60 - €267 per m2 per annum

D▶ ECONOMICAL Central / North / South part of the island €30 - €80 per m2 per annum

Communications

Human Capital

Malta’s telecoms network is reliable, stable and secure. As the infrastructure has opened up to market forces, access rates have increased and tariffs have lowered. Malta has seen huge public and private sector investment in ICT over the past 15 years and today the country boasts a truly modern infrastructure. The country’s ICT industry is a versatile and mature cluster, and the country hosts more than 200 IT companies, including international giants such as Microsoft, Oracle and Cisco. Malta is internationally connected through two satellite stations, one to the Atlantic Ocean region and the other to the Indian Ocean region, and four submarine fibre optic links to mainland Europe, two of which are operated by GO and the rest by Vodafone and Melita respectively. All operators say their cables are designed to carry a lot more traffic than current levels and their capacity is unlimited.

Highly educated, multilingual and diligent, the Maltese workforce is the country’s greatest strength and most valuable asset. Employers will find Malta can offer great value for money as labour costs are around two thirds of those in other Western European jurisdictions. Average Salaries per annum (€) CEO CFO Financial Controller Management Accountant Qualified Accountant Accounts Administration Senior Compliance Manager Compliance Manager Fund / Portfolio Manager Senior Fund Administrator Fund Accountant Trust Manager Senior Branch Manager Branch Manager Senior Insurance Manager Technical Insurance Executive Treasury Senior Manager Treasury Dealer

96,000 75,750 49,000 32,000 32,500 15,000 43,129 30,242 36,400 29,590 25,000 38,550 41,500 34,872 55,000 24,760 42,255 30,569

Source: Castille Resources, Salary Survey 2013

C D

A B

investment funds & asset management

What employers need to know: • Probation: The length of the probation period is normally six months unless otherwise agreed by both parties. • Weekly working time: 40 hours. • Leave: Employees in fulltime employment are entitled to 24 days of vacation leave per year. Maternity leave for female employees in full-time employment is 18 weeks. The law also provides for up to three months unpaid parental leave in the case of birth, adoption or legal custody of a minor. • Social security: Employers pay social security contribution at a rate of 10 per cent of the basic wage paid to their employees, subject to a minimum of €15.35 per week and a maximum of €35.39 per week. Employees pay another 10 per cent of basic wages, subject to the same minimum and maximum.

Taxation Malta’s tax system has been deemed by the European Commission to be compliant with EU non-discrimination principles and has also gained approval from the OECD.

Corporate Tax Malta offers a highly efficient fiscal regime that avoids double taxation on taxed company profits distributed as dividends. Malta companies are taxed at a rate of 35 per cent. However, a full imputation system applies to the taxation of dividends, whereby the tax paid by the company is imputed as a credit to the shareholder receiving the dividend. Following the distribution of a dividend, shareholders are also entitled to claim a tax refund of 6/7ths of the relevant tax paid in respect of trading income and 5/7ths of the relevant tax paid in the case of passive interest and royalties. The refund is reduced to 2/3rds where the distributing company claims double taxation relief. Income and gains from a participating holding (where a company holds directly at least 10 per cent of the equity shares of a non-resident company, or meets certain other criteria) are exempt from tax. Alternatively, instead of claiming this exemption, a company can choose to pay tax at the normal tax rate and then receive a full refund of the tax paid upon a distribution of dividends.

FINANCEMALTA Sector guides 2O15 -2O16

Taxation of Key Vehicles Banks and Financial Institutions: Banks and financial institutions are taxed like all companies registered in Malta. Insurance Companies: Special provisions apply to the determination of total income from the business of insurance. Insurance Managers: Insurance management companies are taxed like all companies registered in Malta. Each cell in a PCC or an ICC is treated as a separate company for tax purposes. Fund Managers / Fund Administrators: Fund managers and fund administrators are taxed like all companies registered in Malta. Investment Funds: Maltadomiciled funds are, as a general rule, exempt from Maltese income and capital gains tax as long as they do not have over 85 per cent of their assets situated in Malta. Trusts: When all the beneficiaries of a trust are not domiciled/resident in Malta and where the trust assets are situated outside Malta, no Maltese income tax (or transfer duty) is payable. Foundations: A foundation may be treated as a Maltese company and benefit from Malta’s full imputation system. Foundations may also opt to be taxed in the same manner as a trust.

Retirement Schemes: Licensed retirement schemes are exempt from tax on income and capital gains but this does not apply to immovable property situated in Malta. Individuals: Individuals are charged on their income at progressive tax rates up to a maximum rate of 35 per cent.

Tax Incentives for Highly Qualified Professionals To attract highly qualified personnel to the financial services industry, Malta introduced an incentive scheme in 2011 targeting well-paid foreign executives. Individuals who have their domicile outside of Malta and are employed in senior positions with a company licensed or recognised by the MFSA to conduct financial business in or from Malta, can benefit from a flat personal income tax rate of 15 per cent on income up to €5 million. Any income over €5 million will be taxfree. To qualify for this tax incentive the employee must earn a minimum of €81,205 (basis year 2014) per year, amongst other criteria.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

MALTA

A Cosmopolitan Lifestyle in the Med

ore than just a smart place to invest, Malta is a multi-faceted jewel shining at the centre of the Mediterranean. This small, friendly and welcoming island contains everything you could want to strike that perfect balance between business and pleasure.

A Short Flight Away As a leading finance centre, Malta is well connected. Malta International Airport, the islandâ&#x20AC;&#x2122;s only airport, is just two or three hours flying time from most European cities. Several airlines operate regular flights to the island including Air Malta, Lufthansa, Emirates, British Airways, Air France, Alitalia, Scandinavian Airlines, Ryanair, EasyJet, Turkish Airlines and Air Berlin.

Mediterranean Luxury Determined to uphold its reputation as a five-star destination for high-end travellers and the global business elite, Malta features a number of international and luxury hotels such as the Hilton, Excelsior, Radisson, Intercontinental, Westin Dragonara, Corinthia and the Hotel Phoenicia. Superior accommodation is also offered at the boutique hotel Xara Palace Relais & Chateaux.

Gastronomic Delight When it comes to dining, Malta is an island of staggering options. The food scene is defined by an eclectic mix of Mediterranean cooking with strong Italian influences, fuelled by rich ingredients fresh from farm and sea. There are also many restaurants offering international specialities, and the choice is wide, from smart city restaurants in Baroque palaces and family-run trattorias to seafront fish restaurants.

investment funds & asset management

The World’s Best Climate With more than 300 days of sun a year, expatriates in Malta often become the envy of friends back home. Hot, dry summers and mild winters have earned Malta the title of world’s best climate by ‘International Living’ magazine. Even in winter Malta enjoys an average of 5 to 6 hours of sunshine and more than 12 hours a day in summer.

Universal Use of English As an official language of Malta, English is spoken by nearly everyone. English is so prevalent in Malta that thousands of foreign students travel from all over the world to learn English on the island. It is the main business language, while laws and regulations are published in both Maltese and English. Maltese is a unique language with Arabic roots and speckled with Italian, French and English words. Many Maltese are multilingual and also fluent in Italian, German or French.

FINANCEMALTA Sector guides 2O15 -2O16

A Home in the Sun For those looking for something more permanent, Malta boasts a wide range of properties available to rent or purchase, from furnished apartments to farmhouses, villas with pools, and even palazzos, all at competitive prices. Finding a good property close to amenities is fairly easy. Most notable properties include five-star apartment complexes built in Tigné and Portomaso.

Cosmopolitan, but not Costly Whether choosing a modest apartment or a luxury villa, costs in Malta are very reasonable. Malta comes close to having the lowest cost of living in Europe, while still catering to all lifestyles. Moreover, the island offers highly sophisticated and reliable banking, taxation, insurance, social security and communications services.

FINANCEMALTA Sector guides 2O15 -2O16

The End of Long Commutes In Malta the trip to work is a breeze, as it takes only 45 minutes to cross the entire island. Maltaâ&#x20AC;&#x2122;s public transport system covers every corner of the two main islands. Water taxis are a scenic way to jump between the capital Valletta and the nearby headlands of Sliema to the west and the Three Cities to the east.

investment funds & asset management

Safe and Quiet Streets Few locations in the world can offer the same high standard of transparency, security and stability that Malta does. The country follows a zero-tolerance policy for corruption, and crime is almost non-existent. Children play on the streets, and there are still some areas where people leave their doors unlocked at night.

Family Life Malta has a highly familyoriented culture. Almost all restaurants and public places are family-friendly, while nurseries are free and the Government offers working families subsidies to cover the cost of daycare. Older children can be enrolled in one of many excellent international private or local public schools, nearly all of which teach in English. Tertiary education is offered through the University of Malta and other institutes and private colleges.

First Class Healthcare Malta has some of the best healthcare in the world, which is offered free to EU nationals residing in Malta, while foreign residents are advised to take out private medical insurance. As well as local clinics in each town, Malta has a large and modern public hospital, Mater Dei, while also being home to the renowned St James private hospital.

investment funds & asset management

Work and Live Visa Free As a member of the Schengen Zone, Malta attracts thousands of professional EU nationals every year, who are free to reside and work on the island. Non-EU citizens can find details about visaexempt countries and visa application procedures on the website of the Ministry for Home Affairs and National Security (www.mhas.gov.mt). Third-country nationals require work permits, and the granting of these is subject to a labour market test.

Outdoor Malta Malta’s Mediterranean climate lends itself to a year-round outdoor lifestyle of water sports, golfing, hiking, fishing, horse riding and more. The conditions for scuba diving and snorkeling are excellent, particularly as the sea temperature never drops below 13C (55F). Malta has one golf course, located at the Royal Malta Golf Club, and gyms, football or water polo clubs can be found all over the island.

FINANCEMALTA Sector guides 2O15 -2O16

Active in Malta The sea, cafés, restaurants, clubs, cinemas, theatres, sports clubs or gyms are almost always within a walking distance of office complexes or residential areas. Malta also hosts many great festivals of culture and art. Each town or village has its own annual feast and parade for their patron saint. For those in need of some retail therapy, Malta is home to shopping malls for big brand names and markets for local goods.

Centuries of Captivating History Heritage forms an important part of island life. With 7,000 years of history and many remains visible to this day, Malta can be described as an open-air museum. Megalithic temples, medieval towns and massive bastions have all been declared as UNESCO World Heritage Sites. These formidable structures regularly provide the backdrop for events listed in Malta’s packed cultural calendar such as concerts, plays or art exhibitions as well as its thriving film industry.

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Whoâ&#x20AC;&#x2122;s who Malta Business Profiles Accounting & Auditing

Insurance Management

Baker Tilly Malta.........................................................................44 Capstone Group .........................................................................45 Deloitte Malta..............................................................................47 EY ................................................................................................47 Grant Thornton...........................................................................49 Griffiths + Associates Ltd...........................................................50 KPMG..........................................................................................52 PwC..............................................................................................53 RSM Malta...................................................................................53

Abacus Risk Management Services PCC Ltd ...........................43 Marsh Management Services Malta Limited............................52

Banking Services Bank Of Valletta plc....................................................................44 HSBC Bank Malta plc- Commercial Banking..........................50 HSBC Global Asset Management (Malta) Limited..................51 IIG Bank (Malta) Ltd..................................................................51 NBG Bank Malta Limited...........................................................53 Sparkasse Bank Malta plc...........................................................54

Corporate services Abacus Corporate Services Limited..........................................43 Amicorp Malta Ltd......................................................................43 Avanzia Taxand Ltd.....................................................................44 Corporate Services Limited (CSL).............................................45 Equiom Malta Limited................................................................47 Francis J. Vassallo & Associates Limited...................................48 International Management Services Ltd...................................51 STM Malta Trust & Company Management Ltd......................54 United International Management (Malta) Limited................55 WDM International....................................................................55 ZETA............................................................................................55

Financial Markets Argentarius ETI Management Limited.....................................44 Malta Stock Exchange plc...........................................................52

Foreign Exchange FXDD Malta Limited .................................................................49

Fund Administration Alter Domus (Services) Malta Limited.....................................43 Castlegate Fund Services Ltd......................................................45 Heritage International Fund Services (Malta) Limited...........50 IDS Fund Services Malta Limited..............................................51 SGGG Fexserv Fund Services (Malta) Limited........................53 Trident Fund Services Malta Ltd...............................................54 Valletta Fund Services Limited..................................................55

Insurance Services FirstUnited Insurance Brokers Ltd............................................48 GasanMamo Insurance...............................................................49 South Risk Insurance Brokers Ltd.............................................54

Investment Services Curmi & Partners Ltd.................................................................46 Jesmond Mizzi Financial Advisors Ltd.....................................51

KYC & Compliance DAIS Software Limited...............................................................46

Legal Services Acumum Legal & Advisory .......................................................43 Camilleri Preziosi .......................................................................44 Chetcuti Cauchi Advocates........................................................45 CSB Advocates.............................................................................46 David Griscti & Associates.........................................................46 David Zahra & Associates Advocates........................................47 Dingli & Dingli Law Firm..........................................................47 Fenech & Fenech ........................................................................48 Fenech Farrugia Fiott Legal.......................................................48 Ganado Advocates......................................................................49 Gonzi and Associates, Advocates...............................................49 GTG Advocates...........................................................................50 GVTH Advocates........................................................................50 Mamo TCV Advocates................................................................52 Simon Tortell & Associates.........................................................53 WH Partners ...............................................................................55

Media Services CountryProfiler Malta Limited..................................................46

Outsourcing Services Centrecom...................................................................................45

Promotional Agency FinanceMalta...............................................................................48

Real Estate Malta Sotheby's International Realty........................................52 Tumas Developments.................................................................54

investment funds & asset management

Paul Kneen

FINANCEMALTA Sector guides 2O15 -2O16

Abacus Corporate Services Limited Abacus is an independent and privately owned fiduciary and fund services specialist group. Operating from the Isle of Man and Malta, we provide premier onshore and offshore fiduciary, fund and pension solutions to an international client base, delivered by an experienced and technically competent team of multidisciplined and multi-lingual professionals. Whether an investment portfolio, trading company, real property, a luxury yacht or a business jet, we can establish an effective trust, company or fund structure tailored to your needs and offer associated administration and back office support services at the level you require. We also provide international corporate pension solutions and assistance to HNWIs accessing the Maltese Individual Investor Program.

Chief Executive Officer

Baudouin Deschamps

Abacus Risk Management Services PCC Ltd Abacus Risk Management Services PCC Ltd, an Associate Company of GasanMamo Insurance Ltd, provides the set up and efficient management of your captive, protected cell(s) or other insurance operations in Malta by a team of experienced professionals overseen by Abacus Executive Directors with more than 60 years combined experience in the complex world of captive and global insurance. Abacus’ protected cells also provide foreign insurance managers the opportunity to establish a presence in Malta at reasonable cost hereby enabling their clients to benefit from Malta’s direct writing, tax efficient and compliant European jurisdiction. Abacus, the Insurance Manager of choice for Malta, the domicile of choice.

director & insurance manager

Acumum Legal & Advisory Our highly experienced international lawyers, advocates and tax advisors, provide the full range of legal and advisory services in a multi-disciplinary practice. Representing private individuals, corporations, family offices and other organisations, our services include advocacy in the UK, Malta, at EU level and throughout the Commonwealth. Centrally managed in the EU tax efficient jurisdiction of Malta, Acumum provides superb client service and practical advice at competitive, transparent pricing. Geraldine Noel Managing Partner

Country Executive – Malta, Italy

Alter Domus (Services) Malta Limited Alter Domus is a leading European provider of Fund and Corporate Services, dedicated to private equity and infrastructure houses, real estate firms, multinationals, private clients and private debt managers. Our vertically integrated approach offers tailor-made administration solutions across the entire value chain of investment structures, from fund level down to local Special Purpose Vehicles. Founded in Luxembourg in 2003, Alter Domus has continually expanded its global service offer and today counts 28 offices and desks across four continents. This international network enables clients to benefit globally from the expertise of more than 750 experienced professionals active in fund administration, corporate secretarial, accounting, consolidation, tax and legal compliance and debt administration services.

Rudolph Psaila

Amicorp Malta Ltd Amicorp Malta entities are part of the Amicorp Group. Working as a global team across more than 41 offices in over 28 countries, each of Amicorp’s 950 + specialists contribute their individual talents to Amicorp’s broad range of expertise and experience. Amicorp Malta is licensed by the MFSA to set up and administer trusts and foundations and to provide fund administration and related services. In addition we assist international clients with company formations, management and administration and related services, including financial reporting services, income tax, VAT compliance and payroll services. Amicorp is also licensed to assist foreign nationals and their dependants with acquiring a certificate of naturalization as citizens of Malta.

Chris Casapinta

managing director

Level 3, Gasan Centre, Mriehel, Mriehel Bypass, BKR 3000 - Malta T: (+356) 2065 0500 E: enquiries@abacusmalta.com W: www.abacusmalta.com Contact: Paul Kneen - Chief Executive Officer

LF3 GasanMamo Head Office, Msida Road, Gzira - Malta T: (+356) 2349 0167 E: info@abacus.com.mt W: www.abacus.com.mt Contact: Baudouin Deschamps Director & Insurance Manager

260 St Albert’s Street, Gzira, GZR 1150 - Malta T: (+356) 2778 1700 E: info@acumum.com Skype ID: acumum W: www.acumum.com Contact: Geraldine Noel - Managing Partner

Domestica Bldg, Msida Valley Road, Msida MSD 9020 Territorials Street, Mriehel BKR 3000 - Malta T: (+356) 2205 1000 E: chris.casapinta@alterdomus.com W: www.alterdomus.com Contact: Chris Casapinta Country Executive - Malta & Italy

Level 1, Blue Harbour Business Centre, Ta’ Xbiex Yacht Marina, Ta’ Xbiex XBX 1027 - Malta T: (+356) 2258 4700 E: r.psaila@amicorp.com W: www.amicorp.com Contact: Rudolph Psaila - Managing Director

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Argentarius ETI Management Limited Our firm is a specialist provider of private label securitisation transactions through a network of Special Purpose Securitisation Vehicles that we manage. We are an authorised Listing Agent for the issue of Structured Financial Instruments at the European Wholesale Securities Market in Malta and our speciality is the structuring and issue of Exchange Traded Instruments (ETIs) used in the securitisation of Alternative Investments under the Securitisation Act of Malta.

Andreas Woelfl managing partner

Walter Cutajar

Avanzia Taxand Ltd Avanzia Taxand is a member firm of Taxand, the global network of leading tax advisors. Avanzia Taxand is dedicated to delivering top quality, tailored and practical strategic tax advice and a range of corporate services to drive the performance of multinational businesses. Our partners lead every engagement from start to finish, and achieve excellence and efficiencies for our clients, globally. Avanzia Taxand is the leading tax firm in Malta and was named ‘Malta Tax Firm of the Year’ by the International Tax Review in 2009 and 2013, whilst in 2011, 2014 and 2015 it was named ‘Malta Tax Firm of the Year’ by Corporate International.

Managing Director

Donald Sant

Baker Tilly Malta Baker Tilly Malta is a firm of accountants, auditors, taxation and business advisors providing services for businesses operating in all spheres of the economy, both locally and overseas. Baker Tilly Malta is an independent member of Baker Tilly International, a worldwide association of leading accountancy practices operating in 133 countries around the world, ensuring that our clients are able to draw on professional advice on any aspect of their international affairs. The philosophy of the firm is based on the concept of providing creative forward thinking and planning, and being able to offer an independent and innovative service in support of clients’ business goals.

Managing Partner & Head of Audit

Charles Borg

Bank of Valletta plc Bank of Valletta is the leading financial services provider in Malta, offering a full spectrum of financial services, including investment banking, private banking, fund management, bancassurance, stockbroking and trustee services. The Bank serves its clients via an extensive network of branches, an International Corporate Centre and Business Centres that cater for its business clients, as well as a fully-fledged Wealth Management arm and Investment Centres. Representative Offices in Brussels, Milan, Tripoli and Melbourne liaise with clients interested in growing their business in these countries. BOV issues bank cards under the VISA and MasterCard brands and distributes American Express cards. The Bank’s services are available on a 24/7 basis via internet and mobile.

chief executive officer

Camilleri Preziosi A leading Maltese law firm with a commitment to deliver an efficient service to clients by combining technical excellence with a solution-driven approach to the practice of law. Camilleri Preziosi is a specialised practice, advising on domestic and international transactions with a focus on corporate and commercial law, and the financial services sector. The firm provides both transactional and regulatory advice and assistance to clients. We take a multi-disciplinary approach to our practice and all our lawyers advise across a broad range of areas, which enables us to give practical and effective advice to clients. Dr Louis de Gabriele Partner

116/8 ‘San Juan’ St Georges Rd, St Julians STJ3203 - Malta T: (+356) 2010 7357 E: andreas@argentarius-group.com W: www.argentarius-group.com Contact: Andreas Woelfl - Managing Partner

Blue Harbour Business Centre Level 1, Ta’ Xbiex Yacht Marina Ta’ Xbiex XBX 1027 - Malta T: (+356) 2730 0045 E: walter.cutajar@avanzia.com.mt W: www.avanzia.com.mt Contact: Walter Cutajar - Managing Director

Level 5, Rosa Marina Building, 216 Marina Seafront, Pieta PTA 9041 - Malta T: (+356) 2010 9500 E: Info@bakertillymalta.com W: www.bakertillymalta.com Contact: Donald Sant Managing Partner & Head of Audit

BOV Centre, Triq il-Kanun, Santa Venera SVR 9030 - Malta T: (+356) 2131 2020 E: romeo.cutajar@bov.com W: www.bov.com Contact: Romeo Cutajar Chief Officer Investment Services

Level 3, Valletta Buildings, South Street, Valletta VLT 1103 - Malta Tel: (+356) 2123 8989 E: louis.degabriele@camilleripreziosi.com W: www.camilleripreziosi.com Contact: Dr Louis de Gabriele - Partner

investment funds & asset management

David Borg Business Advisory Partner

Niall Brooks

FINANCEMALTA Sector guides 2O15 -2O16

Capstone Group Capstone is a dynamic group consisting of an accounting, tax and business advisory firm, Capstone Advisory Co. Ltd., and an independent audit firm, Capstone Assurance Co. Ltd., providing statutory and non-statutory audit and assurance services. Capstone is the Malta Member firm of Integra International, an interactive, global association of independent accounting and consulting firms with over 130 members in over 70 countries. With a growing portfolio of domestic and overseas clients, Capstone Group has developed specific competence and expertise within the financial services, remote gaming, international pensions, oil and gas, real estate, tourism and hospitality sectors. A team of over 29 qualified and semiqualified accountants and support staff provide personalised solutions to clients structuring in and out of Malta.

Castlegate Fund Services Ltd Castlegate Fund Services Ltd is a full service fund administrator and provider of independent fund directorship services. Through a team of highly qualified and experienced individuals, utilising leading fund administration systems, we provide a high quality, customer driven service with an emphasis on responsiveness, attention to detail and competitive pricing. In addition to start-ups, we can assist funds looking to transition from their existing administrator and assist investment managers with the establishment of a Maltese presence, provision of directors, compliance officers and MLROs. Through our affiliate in the BVI, we can also arrange services in the North American time zone.

Director

Nadia Pace

Centrecom Centrecom is a contact centre based in Malta that offers world-class customer support to a variety of industries, including Finance, Insurance, Online classifieds, Aviation, i-gaming and Government entities. Our contact centre is manned by a talented multi-national team that is native in nine languages ensuring that we can personally attend to your international customer service requirements across all touch points on a 24/7 basis. Weâ&#x20AC;&#x2122;ve recently opened our second service centre in Fiji that ensures a worldwide coverage. If your company is relocating to Malta or looking for a global service centre to serve your worldwide brand, Centrecom is the right partner for your journey.

Chief Executive Officer

Dr Jean-Philippe Chetcuti Managing Partner

Chetcuti Cauchi Advocates With offices in Malta, Chetcuti Cauchi is a law firm who advises successful entrepreneurs, business families, institutions and their advisors seamlessly on their business and private legal needs both at home and abroad. Our unique multi-disciplinary set-up of over 80 lawyers, tax advisors, accountants, company administrators and relocation advisors allows us to provide the full spectrum of legal, tax, company formation, immigration, corporate relocation, Malta Residency, Malta Citizenship by Investment and fiduciary services to clients using Malta in international tax planning, cross-border business structuring and wealth management solutions. The firm serves as a trusted advisor to personal and corporate end-clients as well as international law firms, tax advisors, accountants, private bankers and family offices worldwide. We maintain key strengths in corporate law, international tax, intellectual property, immigration law, property law and trusts. Corporate Services Limited (CSL) CSL established in 1988, is a one-stop-shop providing an array of comprehensive, professional and personalised services. Its core expertise lies in the provision of company formation, corporate and fiduciary services, shipping, aviation, trusts and tax planning, residency and IPP. We take care of all related financial services including accountancy, VAT and tax returns and back office/ support services.

Amanda Chetcuti-Ganado director

Suite 5, Level 1, Tower Business Centre, Tower Street, Swatar BKR 4013 - Malta T: (+356) 2549 6500 E: dborg@capstonegroup.com.mt W: www.capstonegroup.com.mt Contact: David Borg Business Advisory Partner

6, 3rd Floor, Market Street, Floriana FRN 1082 - Malta T: (+356) 2122 6608 E: nbrooks@castlegatefundservices.com W: www.castlegatefundservices.com Contact: Niall Brooks - Director

Aviation Centre, First Floor, St. Thomas Street, LQA5000, Luqa - Malta T: (+356) 2364 4000 E: nadia.pace@centrecom.eu W: www.centrecom.eu Contact: Nadia Pace - Chief Executive Officer

CHETCUTI CAUCHI ADVOCATES

120, St Ursula Street, Valletta VLT 1236 - Malta T: (+356) 2205 6105 W: www.ccmalta.com Contact: Dr Jean-Philippe Chetcuti Managing Partner

5/2 Merchants Street, Valletta VLT1171 - Malta T: (+356) 2123 0428 E: anton@cslmalta.com W: www.corporateservices.com.mt Contact: Anton Chetcuti Ganado Managing Director

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

CountryProfiler Malta Limited CountryProfiler (CP) is an international media company that specialises in the publication of country reports and investment guides on the world’s most innovative and high-growth markets for trade, foreign investment and international financial services. CountryProfiler’s publications provide blue-chip companies, their executive management and professional advisors with global business intelligence and market insight they require when managing cross-border operations, investing or doing business with new markets. CountryProfiler’s publications are considered to be among the most prestigious economic intelligence products available. Garvan Keating director emea

CSB Advocates CSB Advocates is a leading provider of quality financial and cross-border legal services in Malta, and has been consistently credited by its clients as being “sharp, focused, and readily available”. Active in the areas of: Corporate Law; Mergers and Acquisitions; Finance; Financial Services Regulation; Hedge Fund Regulation; e-Commerce; iGaming; Shipping, Yachting & Aviation; Employment & Industrial Relations; Tax; Technology, Media & Telecommunications; Trusts & Estate Planning; Competition; Antitrust Regulation; Insolvency; Intellectual Property; Real Estate; Litigation & Arbitration. Dr Andrew J. Zammit managing Partner

David A. Curmi

Curmi & Partners Ltd Curmi & Partners Ltd. are one of the leading investment houses in Malta. Established in 1978, we offer a wide range of investment solutions across differing markets and market conditions that have specifically been developed for our clients and are the result of innovative thinking and thorough research. Our clients range from small banks, insurance companies, occupational and private pension schemes, other corporates and high net worth individuals. We feel that individual attention to each client is central to our investment approach, thus we build long-term relationships with our clients based on trust and our discreet approach to their investment objectives.

Managing Director

DAIS Software Limited DAIS Persona is a multi-function “customer acceptance” software that combines client document management and a compliance search tool for KYC/AML/ CFT process. Designed as a front-line screening and reporting tool to minimise regulatory risks, DAIS PERSONA enables you to automatically monitor, screen and search for an individual or a corporate entity against known sanction lists that include UN Sanction list, US Treasury OFAC and EU Sanctions lists. POWERED BY Dow Jones Risk & Compliance data solutions. Savas Manyasli founder, solution architect

David Griscti senior partner

David Griscti & Associates David Griscti & Associates is a law firm focused on the financial services industry, particularly Funds, Investment Managers, Securities, Credit and other financial institutions, corporates, trusts and foundations. We assist banks, asset managers, financial advisors and other intermediaries to structure, and license AIFs, de minimis PIFs, UCITS, AIFMs and UCITS managers, fund administrators, credit and other financial and investment service’ institutions. The Firm also structures alternative investment structures, such as Private Funds, Securitisation Vehicles, corporates, trusts and foundations. Post establishment the firm offers full legal, corporate, tax advisory, compliance, anti-money laundering, company secretarial and executive board services, as well as other supplementary back-office services, including support risk-management and reporting services.

64, St Anne Court, Flat 4, Bisazza Street, Sliema SLM 1642 - Malta T: (+356) 2034 2034 E: puglisevich@countryprofiler.com W: www.countryprofiler.com Contact: Melissa Puglisevich Office Manager

The Penthouse, Tower Business Centre, Tower Street, Swatar BKR4013 - Malta T: (+356) 2557 2300 E: info@csb-advocates.com W: www.csb-advocates.com Contact: Dr Andrew J. Zammit - ManagingPartner

Finance House, Princess Elizabeth Street, Ta’ Xbiex xbx 1102 - Malta T: (+356) 2134 7331 E: info@curmiandpartners.com W: www.curmiandpartners.com Contact: David A. Curmi Managing Director

64, St Anne Court, Suite 4, Bisazza Street, Sliema, SLM 1642 - Malta T: (+356) 2034 2037 E: juan@dais.com.mt W: www.dais.com.mt Contact: Juan Fach Business Development Director

168, St Christopher Street, Valletta VLT 1467 - Malta T: (+356) 2569 3000 E: dgriscti@dglawfirm.com W: dglawfirm.com.mt Contact: David Griscti - Senior Partner

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

David Zahra & Associates Advocates David Zahra & Associates Advocates is a law firm based in Valletta, which focuses on the core areas of commercial activity, with particular strength in corporate and commercial law, mergers and acquisitions, trusts and foundations and financial services law (including Islamic Finance). The firm’s founder, David Zahra, together with the firm’s associates, strive to satisfy the requirements of the client by fostering a close relationship and taking a keen interest in the client’s business to better understand their needs. The firm provides a solutions-driven approach to the law to assist the client quickly and efficiently in obtaining the best results. Dr David Zahra Partner

Deloitte Malta Deloitte Malta’s Financial Services Industry Group has been at the heart of the industry’s growth in Malta and offers a wide array of services specifically designed for entities in the banking, insurance and investment management sectors. This team consists of industry experts in all service lines being audit, tax and advisory and offers tailor made solutions for financial reporting, Information Technology solutions, compliance and risk management and regulatory advice and licence applications. Steve Paris Leader Financial Services Industry

Dr Kevin F. Dingli

Dingli & Dingli Law Firm Dingli & Dingli Law Firm was established in 1982 and has over the years earned a solid reputation for efficiency and effectiveness leading to results. This is achieved through the deployment of a strong team effort when handling assignments, harnessing the power of partnership to the full. The Firm handles all types of legal work, but is especially active in ship sale and purchase, registration and finance; financial services, tax, company formation and administration; real estate, citizenship and residency; intellectual property law, admiralty and aviation. Complementary services are rendered by DG Fiduciary Limited authorised to provide trustee and fiduciary services and Quorum Corporate Services Ltd. providing accounting services.

Managing Partner

Equiom Malta Limited Equiom is fast becoming the stand out business in the fiduciary services sector, with offices in some of the world’s premier international finance centres. We are an independent, management-owned company which allows us to think strategically and act quickly. Equiom operates niche business lines, in addition to its traditional corporate and fiduciary services. It proudly manages a large fleet of superyachts and business jets, with the intention of being the premier manager of these specific asset classes. Equiom has also successfully managed numerous licence applications for e-Gaming operators across a broad range of gaming platforms. Annie Sanchez-Talavera Director

EY (formerly known as Ernst & Young Limited) EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

Ronald Attard Country Managing Partner CSE TAS South Cluster Leader

Level 3, Theuma House, 302, St. Paul Street, Valletta, VLT 1213 - Malta T: (+356) 2124 0019 E: marika@davidzahra.com W: www.davidzahra.com Contact: Marika Borg Bonello Administrative Assistant

Deloitte Place, Mriehel Bypass, Mriehel BKR 3000 - Malta T: (+356) 2343 2000 E: sparis@deloitte.com.mt W: www.deloitte.com/mt Contact: Steve Paris Leader Financial Services Industry

Dingli&Dingli LAW

F I RM

18/2, South Street, Valletta VLT1102 - Malta T: (+356) 2123 6206 E: info@dingli.com.mt W: www.dingli.com.mt Contact: Dr Kevin F. Dingli Managing Partner

2nd Floor, Tower Business Centre, Tower Street, Swatar, Birkirkara BKR 4013 - Malta T: (+356) 2546 6614 E: Anniesanchez-talavera@equiomgroup.com W: www.equiomgroup.com Contact: Annie Sanchez-Talavera - Director

Regional Business Centre, Achille Ferris Street, Msida MSD 1751 - Malta T: (+356) 2134 2134 E: Jennifer.tonna@mt.ey.com W: www.ey.com Contact: Jennifer Tonna - Marketing Manager

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Fenech & Fenech Advocates Established in 1891, Fenech & Fenech Advocates is a leading Maltese full-service top-tier law firm providing value-driven, tailored legal services across all practice areas. Having a largely international practice, the firm’s expertise spans from financial services, tax and asset finance to shipping, aviation and ICT law. Drawing on its in-house corporate services group, the firm also offers comprehensive corporate solutions with respect to the setting up and administration of companies, trusts and foundations. Dr Rosanne Bonnici partner

Tonio Fenech

Fenech Farrugia Fiott Legal Fenech Farrugia Fiott Legal is a full-service law firm whose specific centres of expertise include Corporate & Commercial Law, Mergers & Acquisitions, Taxation, Banking, Insurance & Investment Funds, Capital Markets Regulation, Trust & Fiduciary Structures, Shipping & Aviation Law, New Media Law, and Regulatory Compliance & Gaming Law. It has specialised units involving industry expertise in various sectors, principal among which are the financial services and investment funds industries, asset finance and the igaming sector. The firm’s clientele is versatile, both in terms of size as well as in terms of geographic spread. Our policy is to take a comprehensive and integrated approach, in collaboration with other professional disciplines, where required.

Joint Managing Partner

FinanceMalta FinanceMalta, a non-profit public-private initiative, was set up to promote Malta’s international Business & Financial Centre, both within, as well as outside Malta. It brings together, and harnesses, the resources of the industry and government, to ensure Malta maintains a modern and effective legal, regulatory and fiscal framework in which the financial services sector can continue to grow and prosper. The Board of Governors, together with the founding associations, its corporate and affiliate members and staff are committed to promoting Malta as a centre of excellence in financial services and international business. Kenneth Farrugia CHAIRMAN

Kevin Galea

FinanceMalta

@FinanceMalta

FinanceMaltaYT

FinanceMalta

Firstunited Insurance Brokers Ltd Established in 1998 we offer bespoke insurance advisory, risk assessment and broking services to Malta domiciled firms establishing new operations or who are looking to review or revalidate their existing insurance programs. Our team of professionals offer considerable experience in the design, negotiation and placement of complex insurance solutions for corporate and multinational clients looking to build strong, long term relationships with the local and international insurance market. We form part of the Willis Global Network and as part of such affiliation, our clients receive the full benefit of the service that FirstUnited and Willis Group offers. We call this Glocal Service - Global resources delivered locally.

partner

Francis J. Vassallo & Associates Limited Francis J. Vassallo, a former Governor of the Central Bank of Malta, established Francis J. Vassallo & Associates Ltd 17 years ago. Our team of lawyers, accountants and support professionals deliver a broad spectrum of bespoke services to a global client portfolio and specialises predominantly in the provision of Tax and Advisory Services, Corporate Services, Management and Compliance, Aviation and Shipping Services, Investment Funds and Foundations. Our personalised approach to address our clients’ requirements offers an efficient, professional and outstanding service. Francis J. Vassallo president

198, Old Bakery Street, Valletta VLT 1455 - Malta T: (+356) 2124 1232 E: rosanne.bonnici@fenlex.com W: www.fenechlaw.com Contact: Dr Rosanne Bonnici - Partner

Tower Business Centre, Level 1, Suite 5, Tower Street, Swatar BKR 4013 - Malta T: (+356) 2549 6400 E: tfenech@fff-legal.com W: www.fff-legal.com Contact: Tonio Fenech Joint Managing Partner

Garrison Chapel, Castille Place, Valletta VLT1063 - Malta T: (+356) 2122 4525 E: chairman@financemalta.org W: www.financemalta.org Contact: Kenneth Farrugia - Chairman

25, Villa Eden, Princess Elizabeth Street, Ta’ Xbiex XBX 1103 - Malta T: (+356) 2131 9000 E: kgp@firstunited.com.mt W: www.firstunited.com.mt Contact: Jean Portelli

FJVA Business Centre, Industry Street, Qormi QRM 3000 - Malta T: (+356) 2299 3100 E: info@fjvassallo.com W: www.fjvassallo.com Contact: Adriana Camilleri Vassallo - Director

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

FXDD Malta Limited FXDD Global is a global foreign exchange (forex) dealer and subsidiary of FXDD. FXDD Global delivers innovative technologies and education that help empower client trading. FXDD Global provides services to individual and institutional traders, hedge funds, commercial entities, brokerage firms and money managers outside of the US. FXDD Global offers a comprehensive array of trading tools and platforms to accommodate all strategies, with dedicated, 24-hour customer service for every account holder. FXDD Global is headquartered in Malta, regulated by the Malta Financial Services Authority (MFSA). Lubomir Kaneti executive director

Ganado Advocates As trusted legal advisors to some of the largest international and local corporations and financial institutions for the past 50 years, we are proud to have contributed to Malta’s achievements by underpinning our clients’ continued success. We are known for the quality of our work. Whether advising on our clients’ daily needs or on some of the most groundbreaking and complex transactions or disputes, we consistently provide our clients with advice that they can depend upon. Our approach combines legal excellence with commercial acumen. Dr Andre Zerafa Partner

K2 First Floor, Forni Complex, Valletta Waterfront, Floriana FRN1913 - Malta T: (+356) 2013 3000 E: fsoler@fxdd.com.mt W: www.fxdd.com Contact: Lubomir Kaneti - Executive Director

171 Old Bakery Street, Valletta VLT 1455 - Malta T: (+356) 2123 5406 E: lawfirm@ganadoadvocates.com W: www.ganadoadvocates.com Contact: Dr Andre Zerafa - Partner

GasanMamo Insurance GasanMamo Insurance traces its roots in insurance back to 1947 and has evolved into a household name in Malta. Licensed as a general insurer by the Malta Financial Services Authority in 2003. GasanMamo is focused on adding value in all that it does putting the customer at the heart of its mission.

Msida Road, Gzira GZR 1405 - Malta T: (+356) 2134 5123 E: insurance@gasanmamo.com W: www.gasanmamo.com Contact: Julian J Mamo - Managing Director

Julian J Mamo Managing Director

Gonzi And Associates, Advocates Gonzi and Associates, Advocates is an established Maltese law firm specialising in Corporate and Tax, Financial Services and iGaming law. Our lawyers are experts in their respective fields allowing us to provide you with relevant, reliable and experience-based legal advice. Contact us for a free initial assessment as to how we can better your business by setting up or relocating your company to Malta or by assisting you to establish and license your credit or financial institution (including electronic money), investment services, funds or igaming operations in Malta. Dr David Gonzi Partner

Mark Bugeja managing Partner

Grant Thornton Founded in 1975, Grant Thornton Malta is a member of Grant Thornton International and a leading assurance, tax and advisory firm in Malta. Proactive teams, led by approachable partners, use insights, technical knowledge and experience to help dynamic organisations unlock their potential for growth by providing meaningful, forward-looking advice. Our clients include governmentowned organisations, local and international privately-held businesses and public interest entities operating in a variety of sectors including financial services, aviation, insurance, gaming, ICT, manufacturing, construction, import and retail. We also provide trustee and fiduciary services through Grant Thornton Fiduciary.

115B, Old Mint Street, Valletta VLT1515 - Malta T: (+356) 2015 7000 E: info@gonzi.com.mt W: www.gonzi.com.mt Contact: Dr David Gonzi - Partner

Tower Business Centre, Tower Street, Swatar BKR 4013 - Malta T: (+356) 2132 0134 E: mark.bugeja@mt.gt.com W: www.grantthornton.com.mt Contact: Mark Bugeja - Managing Partner

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

Griffiths + Associates Ltd Established in 1982 and located in Naxxar, our firm of Certified Public Accountants offers a one-stop shop assisting businesses in carrying out activities in, from or through Malta. The firm’s activities include company incorporations, back-office services and international corporate structuring, especially within the context of Malta’s extensive tax treaty network and advantageous tax regime. Being members of PrimeGlobal, an international association of accountants and advisers, adds value to the servicing of clients’ needs within an international perspective. Peter Griffiths managing & tax director

GTG Advocates GTG combines experience and knowledge to provide its clients with integrated advice and assistance in the fields of shipping, commercial and corporate law, financial services and intellectual property. A leader in communications, gaming and betting, e-commerce and information technology, GTG serves a diverse client base, which also benefits from an international professional network including international firms, banks as well as business contacts in the Middle East. The success of GTG is based on its dedication to client services, providing tailored, efficient and value-added legal solutions. Dr Robert Tufigno PARTNER

Joseph J. Vella

GVTH Advocates GVTH is one of Malta’s leading Commercial Law firms which complements its strong local client base with a considerable international practice. The Firm’s service-integrated approach deals with the most challenging assignments of those national and international companies and organisations that seek the Firm’s advice. GVTH prides itself in assisting these organisations to face their daily challenges, including the ever-increasing complexities of new regulatory landscapes and the issues and dynamics of constantly changing markets. Areas of specialisation include, predominately, Corporate and Commercial Law, Financial Services and Taxation, Intellectual Property and ICT, Banking and Finance, Ship and Yacht Registration, Insurance, Dispute Resolution and Immigration.

Managing PARTNER

Dr Neville Carabott Managing Director

Michel Cordina Head of commercial banking

Heritage International Fund Services (Malta) Limited Heritage International Fund Services (Malta) Limited (“Heritage”) is part of the Heritage Group. Heritage is an independent provider of client-focused, comprehensive, third-party fund administration and depositary lite services with particular expertise in the establishment and servicing of private equity, real estate, infrastructure and esoteric funds investing in both developed and emerging markets. More specifically, Heritage provides administration, accounting, corporate governance, company secretarial and compliance services as part of its fund administration business. Heritage also provides depositary lite services to collective investment schemes (“CIS”) in accordance with the AIFMD regime. These services include asset verification, cash monitoring and general oversight of the CIS’ operations.

HSBC Bank Malta PLC - Commercial Banking HSBC Commercial Banking is a leading provider of business financial services. A purpose-built Business Banking Centre in Qormi brings together under one roof a strong team of specialised relationship managers and business specialists, all trained to service businesses, thus making it a service centre of excellence. A wide range of specifically designed products and services are available to meet the diverse needs of the business community, including Internet Banking, Trade, Invoice Finance, Payments and Cash Management as well as International Banking to meet the needs of International businesses. We are an international bank with local expertise supporting all business segments in Malta.

Level 1, Casal Naxaro, Labour Avenue, Naxxar NXR 9021 - Malta T: (+356) 2738 3631 E: peter@griffithsassoc.com W: www.griffithsassoc.com Contact: Peter Griffiths – Managing & Tax Director

66, Old Bakery Street, Valletta vlt 1454 - Malta T: (+356) 2124 2713 E: info@gtgadvocates.com W: www.gtgadvocates.com Contact: Dr Robert Tufigno - Partner

192, Old Bakery Street, Valletta - Malta T: (+356) 2122 8888 E: gege.vella@gvthlaw.com W: www.gvthlaw.com Contact: Joseph J. Vella - Managing Partner

SmartCity Malta SCM 01, Suite 502, Ricasoli SCM 1001 - Malta T: (+356) 2090 8900 E: neville.carabott@heritage.com.mt W: www.heritage.co.gg Contact: Dr Neville Carabott Managing Director

Business Banking Centre, Mill Street, Qormi QRM3101 - Malta T: (+356) 2380 4832 • F: (+356) 2380 4532 E: michelcordina@hsbc.com W: www.hsbc.com.mt Contact: Michel Cordina Head of Commercial Banking

investment funds & asset management

Muriel Rutland

FINANCEMALTA Sector guides 2O15 -2O16

HSBC Global Asset Management (Malta) Limited HSBC Global Asset Management (Malta) Limited was incorporated in 1996, and is a wholly owned subsidiary of HSBC Bank Malta p.l.c., managing circa US$1 billion (as at December 2014) across retail funds and institutional mandates. HSBC Global Asset Management (Malta) Limited manages a range of Funds which have exposure to both domestic and international financial markets. HSBC Global Asset Management (Malta) Limited is the distributor for HSBC Global Asset Management’s global fund ranges, providing access to a global asset management platform with a network spanning close to 30 countries and territories worldwide. HSBC Global Asset Management (Malta) Ltd is regulated and licensed to conduct investment services business by the MFSA.

Managing Director

Ids Fund Services Malta Ltd IDS Fund Services Malta Ltd was established in 2010 as a subsidiary to the leading administration company, the IDS Group. Tapping into the extensive knowledge and experience of the IDS Group, IDS Malta is focused on offering innovative fund administration and a full suite of supporting services to the investment industry, from long only to pure alternate focussed funds. Our clients include new launches as well as established funds. We are able to assist with new formations and the redomiciliation of existing structures to Malta. Michael Keyrouz managing director

Raymond Busuttil

IIG Bank (Malta) Ltd IIG Bank (Malta) Ltd is a specialist trade finance bank focused on international commodity trade and does this through a comprehensive range of services that are tailored to meet the needs of its international trading customers spread over Latin America, Europe, the Middle East, Africa and Asia. IIG Bank (Malta) Ltd is dynamic and innovative in providing structured solutions for trading companies, distributors, manufacturers and exporters, especially those trading in emerging markets. The Bank’s approach to business is characterised by its desire to build long lasting relationships and by being close to the customer to promote a better understanding of the complexities inherent in international trade flows.

managing director & CEO

International Management Services Ltd IMS provides financial services in general, including the creation of commercial vehicles and structures. It enjoys a solid reputation in the provision of extensive centralised back office operations for its clients. IMS’s multi-disciplinary team is experienced in handling the accounting, tax and administrative functions allowing clients the freedom to concentrate their focus on their core business operations. IMS has an international client base ranging from high-net-worth individuals to quoted companies. Clients operate in trading, e-gaming, investment funds, leasing, aviation and maritime sectors amongst others. Gordon Mifsud Managing Director

IMS is proud to be celebrating 30 years of successful professional service. The Company’s partners are Gordon Mifsud, Adrian Giordano Imbroll and Dr Kathleen Zarb Adami who lead various service sectors. Jesmond Mizzi Financial Advisors Ltd Jesmond Mizzi Financial Advisors prides itself in providing a personalised service. The company is licenced to provide investment advice to retail clients, professional as well as eligible counterparties. The company which re-branded as Jesmond Mizzi Financial Advisors relies on a tried and tested investment approach, drawing on the experience of the founder members – Jesmond Mizzi Financial Services and Atlas Investment Services. The company is the representative in Malta of Henderson Global Investors and Legg Mason Global Funds plc. The company is a member firm of the Malta Stock Exchange and a member of the Atlas Group.

Jesmond Mizzi Managing Director

1st Floor, Business Banking Centre, Mill Street, Qormi QRM 3101 - Malta E: murielmicallef@hsbc.com W: www.hsbc.com.mt Contact: Muriel Rutland - Managing Director

276 Fleur-de-Lys Road, Birkirkara, BKR 9067 - Malta T: (+356) 2258 9500 E: michael.keyrouz@idsfundservices.com W: www.idsfundservices.com Contact: Michael Keyrouz - Managing Director

Level 20, Portomaso Business Tower St. Julians STJ 4011 - Malta T: (+356) 2248 4500 E: raymond.busuttil@iigbank-malta.com W: www.iigbank-malta.com Contact: Raymond Busuttil Managing Director & CEO

30 years of service 1985-2015

Regent House, Office 21, Bisazza Street, Sliema SLM 1640 - Malta T: (+356) 2134 1219 E: gmifsud@imscons.com W: www.imscons.com Contact: Gordon Mifsud - Managing Director

67, Level 3, South Street, Valletta VLT 1105 - Malta T: (+356) 2326 5706 E: jesmond.mizzi@jesmondmizzi.com W: www.jesmondmizzi.com Contact: Jesmond Mizzi - Managing Director

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

KPMG KPMG in Malta is one of the leading providers of audit, tax and advisory services. KPMG is effectively the largest provider of professional services on the island with a total staff complement in Malta of over 450. As we work with our clients, both international and local, we bring our experience and knowledge to bear for the purpose of inspiring confidence and empowering change. We continue to build on past successes thanks to a clear vision, rigorously maintained values and, above all, our people. Tonio Zarb Senior Partner

Managing Director & Joint-Owner

Malta Sotheby’s International Realty Malta Sotheby’s International Realty aims to serve the high-end residential and commercial real estate market, representing lifestyle properties of exceptional quality and unique characteristics. A brand that represents quality and luxury, its presence in Malta serves international clients looking for high-end real estate investment in Malta and Gozo, and local clients seeking real estate investment opportunities worldwide through our international network. Services include: Residential Sales & Letting, Commercial Sales & Letting, Property Management and Relocation & Residency. Malta Sotheby’s International Realty is operated by CSB Real Estate Ltd – forming part of CSB Group (est. 1987) who offer specialised business and commercial services to clients wishing to set-up or relocate their businesses to Malta.

Eileen V. Muscat

Malta Stock Exchange plc For over 20 years, the Malta Stock Exchange has successfully fulfilled its role as an effective venue to raise capital finance. The Exchange provides a structure for admission of financial instruments to its recognised lists which may subsequently be traded on a regulated, transparent and orderly secondary market place. The Malta Stock Exchange also offers a comprehensive range of back–office services, including maintenance of share and bond registers, clearing and settlement and custody services through its in-house Central Securities Depository. The Exchange enjoys international accessibility on both fronts, through its relationship with Clearstream Banking in Frankfurt, Germany, and in Luxembourg, and through the use of the XETRA trading platform, operated by Deutsche Bourse in Frankfurt.

Michael J. Zammit

CHIEF EXECUTIVE

Mamo TCV Advocates Mamo TCV Advocates, a Maltese tier-one law firm with a strong local and international practice, provides legal services in all areas of commercial law, most notably banking and financial services, corporate, communications, media and technology, intellectual property, shipping & aviation, and litigation services. The firm’s mission is to deliver high-quality services through its diverse specialist resources and expertise in a proactive, efficient and timely fashion, and to foster its local and international networks to offer comprehensive and integrated services to clients. Prof. Andrew Muscat managing Partner

Marsh Management Services Malta Limited Marsh Management Services Malta Limited is licensed as an insurance manager in Malta under the Insurance Intermediaries Act. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the premier global professional services firm providing advice and solutions in risk, strategy and human capital. The Malta office was formed in July 2005 and is the market leader for Malta in the formation and management of affiliated (Captive) and non-affiliated insurance and reinsurance companies. Clients under the Company’s management come from a wide range of industries and geographies from around the world. William Thomas-Ferrand Head of Office

Portico Building, Marina Street, Pieta’ PTA 9044 - Malta T: (+356) 2563 1000 E: toniozarb@kpmg.com.mt W: www.kpmg.com.mt Contact: Tonio Zarb - Senior Partner

200, Tower Road Sliema SLM 1602 - Malta T: (+356) 2010 8070 E: info@maltasothebysrealty.com W: www@maltasothebysrealty.com Contact: Michael J. Zammit Managing Director & Joint-Owner

Garrison Chapel, Castille Place, Valletta VLT 1063 - Malta T: (+356) 2124 4051 E: evmuscat@borzamalta.com.mt W: www.borzamalta.com.mt Contact: Eileen V. Muscat - Chief Executive

Palazzo Pietro Stiges, 103, Strait Street, Valletta, VLT 1436 - Malta T: (+356) 2123 2271 E: andrew.muscat@mamotcv.com W: www.mamotcv.com Contact: Prof. Andrew Muscat Managing Partner

Strand Towers, Floor 1, 36 The Strand, Sliema SLM1022 - Malta T: (+356) 2342 3000 E: William.thomas-ferrand@marsh.com W: www.marshcaptivesolutions.com Contact: William Thomas-Ferrand Head of Office

investment funds & asset management

FINANCEMALTA Sector guides 2O15 -2O16

NBG Bank Malta Limited NBG Bank Malta Limited (formerly Finansbank Malta Ltd) was established in 2005 and is a wholly-owned subsidiary of NBG Group. The Group is the oldest and largest bank in Greece and is present in a number of jurisdictions namely Greece, Cyprus, Bulgaria, Albania, Macedonia, UK, Serbia, Egypt, Malta, Romania and Turkey. NBG Malta is designed to be a one-stop shop for banking services for highnet-worth individuals and corporations worldwide. Furthermore, the bank also specialises in the provision of risk management and treasury products/solutions for its clients (Ex. Foreign Exchange and Derivative products). Cenk Kahraman Chief Executive Officer

Joseph Camilleri

PwC PwC is the leading and largest professional services organisation in Malta, providing industry-focused assurance, tax and advisory services. The Malta firm forms part of the PwC network where more than 184,000 people in 157 countries share their experience and solutions to develop fresh perspectives and practical advice. The PwC Asset Management (AM) practice serves institutional, retail, insurance company and bank-advised funds, domestic and offshore hedge funds, private equity and other alternative asset vehicles. PwC Malta provides a full range of industry-focused services and has a strong local and international network of tax and accounting compliance professionals, providing a high quality service, covering the entire life cycle of the asset management sector.

Partner

RSM Malta Every firm that carries the RSM name is driven by a common desire â&#x20AC;&#x201C; to assist clients in achieving their goals and outperform their competitors. At RSM Malta, we have developed in-house capabilities to help organisations anticipate and meet complex challenges. We are the firm that entrepreneurs count on. We focus our efforts on all the regulatory, statutory, tax, audit and accounting services required to operate in the financial services sector.

George Gregory Tax and Corporate Services Partner

SGGG Fexserv Fund Services (Malta) Limited SGGG Fexserv Fund Services (Malta) is your administrative partner for all your fund management requirements, bringing together the international expertise of SGGG Fund Services Inc, responsible for the administration of over 220 alternative strategy funds, together with Fexserv Financial Services, one of the leading and most established companies in the local financial services industry.

Anabel Mifsud Chief Executive Officer

302/304, Townsquare, Qui-Si-Sana Place, Sliema SLM 3112 - Malta T: (+356) 2131 8969 E: cenk.kahraman@nbg.com.mt W: www.nbg.com.mt Contact: Cenk Kahraman - Chief Executive Officer

78, Mill Street, Qormi QRM3101 - Malta T: (+356) 2124 7000 E: joseph.camilleri@mt.pwc.com W: www.pwc.com/mt Contact: Joseph Camilleri - Partner

Cobalt House, Level 2, Notabile Road, Mriehel BKR 3000 - Malta T: (+356) 2149 3313 E: george.gregory@rsmmalta.com.mt W: www.rsmmalta.com.mt Contact: George Gregory - Partner

Alpine House, Naxxar Road, San Gwann SGN 9032 - Malta T: (+356) 2576 2121 E: anabel@sgggfexserv.com W: www.sgggfexserv.com Contact: Anabel Mifsud Chief Executive Officer

Simon Tortell & Associates Simon Tortell & Associates is a full-service law firm with a particular focus on financial services and corporate law. Our lawyers are trained to not only apply the law to any given transaction or scenario but to familiarise themselves with the markets in which they operate with the ultimate goal of finding the best solutions for our clients.

Katya Tua Partner

188 Old Bakery Street, Valletta VLT 1455 - Malta T: (+356) 2122 8862 E: katya@simontortell.com W: www.simontortell.com Contact: Katya Tua - Partner

FINANCEMALTA Sector guides 2O15 -2O16

investment funds & asset management

South Risk Insurance Brokers Ltd South Risk Insurance Brokers is a specialist insurance broker with a particular focus on providing insurance advice and solutions to financial institutions including the asset management and fund industry. We advise our clients and assist them in sourcing insurance which addresses specific risks faced in the running of their business. Our international expertise in this sector and unrivalled network of insurance providers ensures our clients benefit from appropriate insurance cover at competitive terms. Joanne Alamango Managing Director

Sparkasse Bank Malta Plc The Bank forms part of the Austrian Savings Banks and the Erste Group Bank AG network. From Malta the Bank provides Private Banking, Wealth Management, Custody and Depositary solutions. Fund custody is a core business for the bank and its experience in the field allows for flexible and practical workable solutions. The bank provides custody services to UCITS, AIF and PIFs providing a personal, tailored and seamless banking, execution and settlement solution.

Paul A Mifsud Managing Director

STM Malta Trust & Company Management Ltd STM Malta Trust & Company Management Ltd part of STM Group Plc, a company listed on the London Stock Exchange with offices in Gibraltar, Spain, Cyprus and Jersey. STM Malta Trust & Company Management Ltd is authorised by the Malta Financial Services Authority (MFSA) to act as Trustees and registered to act as Administrators of Trusts, Foundations and Retirement Schemes, providing these services to a growing international client base. Our dedicated staff have helped the business grow in offering retirement schemes recognised as QROPS, EURBS and QNUPS. Deborah Schembri Managing Director

Trident Fund Services (Malta) Ltd Through 34 offices in 24 jurisdictions, Trident Trust has for more than thirty years been a leading provider of corporate and trust services to the financial services sector worldwide working with intermediaries, financial institutions and large international organisations. Trident Fund Services, a dedicated fund services division of Trident Trust, provides cost-effective fund administration services with assets under administration exceeding $30 billion. Managers select us for our experienced personnel, robust fund administration systems, global reach, reliability and responsiveness. Nissim Ohayon Managing Director

George Bonnici SALES & MARKETING DIRECTOR

Tumas Developments Described as Malta’s most enterprising and exciting entrepreneur in property development, Tumas Developments, has been instrumental in developing many of the island’s most prestigious projects. Launched in the 1960s by Tumas Fenech, the company grew quickly based on its values of ingenuity, expertise and skill, and successfully revolutionised the local property industry. There have been numerous milestone projects over the years but none more magnificent than the international award-winning, marina, hotel, leisure and residential development. Commencing construction in the late 90s, Portomaso represents a unique multi-million investment that has revolutionised the way people live, think and work in Malta.

43 A/1, Saint Paul`s Buildings, West Street, Valletta VLT 1532 - Malta T: (+356) 2011 9707 E: j.alamango@south-risk.com W: www.south-risk.com Contact: Joanne Alamango Managing Director

101 Townsquare, Ix-Xatt ta’Qui-siSana, Sliema SLM 3112 - Malta T: (+356) 2133 5705 E: paul.mifsud@sparkasse-bank-malta.com W: www.sparkasse-bank-malta.com Contact: Paul A Mifsud - Managing Director

Tagliaferro Business Centre, Level 2, Gaiety Lane c/w High Street, Sliema SLM 1549 - Malta T: (+356) 2133 3210 E: deborah.schembri@stmmalta.com W: www.stmmalta.com Contact: Deborah Schembri Managing Director

The Cornerstone Complex, Level 3 Suite 3, 16th September Square, Mosta MST 1180 - Malta T: (+356) 2143 4525 E: nohayon@tridenttrust.com W: www.tridentfundservices.com Contact: Nissim Ohayon - Managing Director

10 52 Portomaso, St Julians STJ 4011 - Malta T: (+356) 2138 6802 E: gbonnici@tumas.com W: www.tumasdevelopments.com Contact Person: George Bonnici Sales & Marketing Director

investment funds & asset management

Bob Rottinghuis

FINANCEMALTA Sector guides 2O15 -2O16

United International Management (Malta) Limited United International Management (Malta) Limited is part of the United Bank & Trust Group. We are a fully independent and privately owned financial services group with a proven track record in the industry. We provide banking, corporate and fund services to an international private, corporate and institutional client base from our offices in the major regulated financial centers. We combine an international presence with local expertise resulting in total client commitment and tailored client service. In Malta our full range of corporate services include: company formation, (re-)domiciliation, management, administration and accounting, tax compliance, structuring and transaction coordination.

Manager

Joseph M. Camilleri

Valletta Fund Services Limited VFS was incorporated in 2006 as a fully owned subsidiary of Bank of Valletta plc, Malta’s largest banking group, to provide the fund management industry with a comprehensive and integrated range of high-quality fund administration solutions. Through the dedication of its highly qualified and professional human resources as well as the significant investment in state-of-the-art technology, VFS has positioned itself as Malta’s leading fund administrator. As at 31st January 2015, VFS was servicing over 118 investment funds representing US$2.9 billion worth of assets. VFS is recognised to provide fund administration services by the Malta Financial Services Authority.

Chief Officer

Dr Jonathan De Giovanni Partner

Ruth Galea

WDM International WDM International is a full service firm, offering a multidisciplinary service, ranging from tax and legal consultancy to audit and business advisory. WDM Lex Advisory, the firm’s legal services arm, is at the forefront in offering consultancy in the following lines of expertise: International and local tax consultancy; residence, citizenship planning and private client services; regulated industry solutions such as setting up of funds, fund managers, forex companies, credit and financial institutions; setting up of iGaming operations; registration of aircraft, yachts and commercial vessels. WDM Lex Advisory is an approved company services provider and an accredited person for Malta’s Citizenship by Investment Programme. Through WDM Trustees, the firm is also licensed to act as a trustee or co-trustee and as an administrator in the context of private foundations.

WH Partners WH Partners is a Malta-based business law firm with focus and a sound reputation for its work in gaming and gambling, e-payments, ICT, digital industries, privacy and data protection, corporate finance, M&A and taxation. The firm’s approach combines an in-depth understanding of clients’ industries with a result-oriented attitude to work, a strong dose of enthusiasm and perseverance. Lawyers at WH Partners are known for their pan-European experience and seek to give clients a competitive advantage which is also facilitated through solid relations with the regulators. The firm has won international awards for its service levels and is highly ranked by the foremost independent legal directories.

Partner

The Plaza Commercial Centre, (Level 6 – Suite 1), Bisazza Street, Sliema, SLM 1640 - Malta T: (+356) 2010 8648 E: bob.rottinghuis@united-itrust.com.mt W: www.united-itrust.com Contact: Bob Rottinghuis - Manager

TG Complex, Suite 2, Level 3, Triq il-Birrerija, l-Imriehel Birkirkara BKR 3000 - Malta T: (+356) 2122 7148 E: infovfs@bov.com W: www.vfs.com.mt Contact: Joseph M. Camilleri - Chief Officer

35, The Penthouse, Salvu Psaila Street, Birkirkara, BKR 9072 - Malta T: (+356) 2123 2096 E: info@wdm.com.mt W: www.wdm.com.mt Contact: Dr Jonathan De Giovanni - Partner

Level 5 Quantum House, 75 Abate Rigord Street, Ta’ Xbiex XBX 1120 - Malta T: (+356) 2092 5100 E: monique.dingli@whpartners.eu W: www.whpartners.eu Contact: Monique Dingli Marketing Coordinator

ZETA ZETA is a privately held independent group of companies based in Malta offering targeted services which include: Transaction Advisory & Structuring; Company Incorporation; Corporate Administration & Management; Fund Services; Directorship Services; Trusts & Foundations Administration; Insurance Advisory, Insurance Brokerage & Insurance Management.

David Zammit Managing Director

43A/1 St. Paul’s Buildings, West Street, Valletta VLT 1532 - Malta T: (+356) 2011 9700 E: david@zeta-capital.com W: www.zeta-holdings.com Contact: David Zammit - Managing Director

FINANCEMALTA Sector guides 2O15 -2O16

Notes

investment funds & asset management

Promoting and Fostering Maltaâ&#x20AC;&#x2122;s International Finance Centre

INVESTMENT GUIDE & BUSINESS DIRECTORY

2014-2015 EDITION

Malta:

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Sector guides 2O15 -2O16

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Sector guides 2O15 -2O16

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