Camilleri Preziosi Brochure

FIRMPROFILE

HISTORY

Establishedin1966,CamilleriPreziosiisoneofMalta’sleadinglawfirms.Today, weservealocalcorporateclientbasethatissecondtonone,aswellasanarray ofinternationalclientsthatincludesomeoftheworld’slargestconglomerates.

Wetakeprideinourlong-standingrelationshipswithmostofourclients,some ofwhichspandecades.Ourcommitmentistodeliveranefficientserviceby combiningtechnicalexcellencewithaninnovativeandsolutiondrivenapproach tothepracticeoflaw.

Thelevelofspecialisationwithinourfirmandouractiveparticipationinall aspectsofthemattersweadviseon–includingcommercialconsiderationsenableustoadviseon,andaddvalueto,themostcomplexofcommercial transactions.Ourexperienceandspecialisationgiveusaninvaluabledepthand rangeoflegalexpertise,coupledwithcommercialexperience.

OURAPPROACH

Establishedin1966,CamilleriPreziosiisoneofMalta’sleadinglawfirms.Today, Ourapproachistounderstandourclients’keybusinessdrivers,andtoprovide anintegrated,solution-drivenandbusiness-orientedservice.Webelievethatit isonlybyunderstandingourclients’businessthatwecanreallyaddvalue.

Wetakeamulti-disciplinaryapproachtoourpractice.Allourlawyersadvise acrossabroadrangeofareas.Eachlawyerwithinthefirmhasaspecificareaor areasofpracticethatindicatesaparticularcompetenceandexperienceinthat sector,butheorshedoesnotpracticeexclusivelyinthatarea.

Ourclientsworkwithlawyerstheyknowwell,andwhoknowthemandtheir businesses.Thecloserelationshipswedevelopandthekeeninterestwetakein ourclients’businessesenableustogiveadvicethatistechnicallysoundbutis alsopracticalandeffective.

OURPRACTICE

Wehaveanextensiverangeofcommercial,corporate,financeandregulatory expertise,consistentlyrecognisedbyclientsandcolleaguesinotherfirmsas “top-tier”.

Wearerenownedforourconsistentlyhighqualityofserviceandforourindepthexpertiseinallareasofourpractice.

Ourstrongpresenceandrecognitioninthelocalmarketarethefoundationson whichwehavebuiltourinternationalpractice.Wealsocultivateour relationshipswithouroverseascounterpartsinorderforustobeinabetter positiontoprovideourclientswithaseamlessservice.Ourlawyers’regular participationincross-bordertransactionsmakesCamilleriPreziosithenatural choiceforclientswhochooseMaltaastheirbaseforinternationaltransactions.

CamilleriPreziosihasextensiveexperienceinthefinancialservicesindustry.We regularlyadviseonthestructuringandformationofinvestmentservices providersincludingdiscretionarymanagers,investmentadvisors,fund managers,brokers,administratorsandcustodians,aswellasothertypesof investmentfirms.Wealsohaveextensiveexperienceinassistingclientssetup bothretailandalternativefundsinMalta.Wetakeprideinbeingmarketleaders inthissectorandthefirmofchoicebothbyourregularclientsandthosewho seekourservicesspecificallyinthishighlyspecialisedarea.

Internationally,CamilleriPreziosicommandsanoutstandingreputationasa leadingcorporatelawfirmandhasregularlybeenrankedasatop-tierMaltese firmintheChambersGlobal,IFLR1000andEuropeanLegal500reviews.

WHYCAMILLERIPREZIOSI?

WESEEKCLIENTSWE BELIEVEIN

Webelieveinwhatour clientsaretryingto accomplish.This alignmentofvalues motivatesustoprovide exceptionalserviceand advice.Thismeanswe areselectiveinchoosing ourclients–weactively seekoutlike-minded clientswhoweenjoy workingwith

WECHALLENGETHE STATUSQUO

Ratherthantelling clientswhattheycannot doweseektofindways forclientstoachieve theiraimsand objectives

WEAREEXTREMELY PASSIONATEABOUT WHATWEDO

Wearenotgeneralists–wewanttodothework wearepassionateabout andexcelin.

WEARETHEREWHENIT MATTERS

Weareourclients’port ofcallonstrategic matters.Ourclients trustuswithwhat mattersthemostto theirbusiness.

WEFOSTERHUMAN RELATIONSHIPS

Webelievethatclient lawyerrelationshipsare essentiallyhuman relationsratherthan utilitarianonesand accordinglywetryto fosterhealthy relationshipswithour clientsthatmotivateus toalwaysgiveitour best.

RELEVANTEXPERIENCE

Thefirm’sexperienceinthefinancialsectorisunparalleledinMalta.Thefirmhasadvisedboththepublicandprivatesectoronseveralmajorprojects. Thefirmhasrecentlyadvisedandassistedonthefollowingmatters,amongstothers:

1)Weassistedalargecreditinstitutiononsettingupawealthmanagementarm;

2)WehavebeenengagedtoassistwiththeestablishmentofthefirstmarketmakertobeestablishedinMalta,whichwilloperateonmajorEuropean exchanges;

3)Weareretainedbymanylocalinvestmentfirmswhichofferwebbasedtradingtotheirclients(includingfirmsusingwhitelabellingsolutions)toassist onregulatory,transactionalandcontentiouswork;

4)WeassistedwiththelicensingandadmissiontotradingofthefirstexchangetradedfundinMalta;

5)Weassistedanumberoflocalcreditinstitutionswithestablishingsecuritisationvehiclesfacilitatingtheirfinancingtransactions;

6)Weassistedanumberofregulatedfirmswithraisingfundingonthelocalbondmarket,throughtheissuanceofCET1andtier2instruments;

7)Weadviseonthelicensingofanumberofinvestmentfirmsandfundsonanongoingbasis.

SettingUpPIFsandNAIFsinMalta

IntroductoryRemarks

TheinvestmentfundsmarketinMaltaiswellestablishedandhasexperiencedsignificantgrowthinrecentyears.Thisisinno smallpartduetotheattractiveratesoftaxationapplicabletoMaltesefunds(andtheirserviceproviders),lowsetupand professionalcostsandtheflexibleregulatoryarchitectureapplicabletolocallydomiciledfunds.Thebroadrepertoireof structuringsolutionsavailableandtheaccessibilityandresponsivenessoftheMaltaFinancialServicesAuthority(the“MFSA”)are otherfactorswhichhaveaugmentedMalta’sallureasadomicileofchoiceforpromotersandmanagersalike.

Inthispresentationwesetoutahigh-leveloverviewoftheProfessionalInvestorFund(“PIF”)andNotifiedAIF(“NAIF”) framework,twoofthemostpopularregulatoryframeworksforthesettingupoffundsinMalta.

Overview

FollowingtheintroductionoftheAlternativeInvestmentFundManagersDirective(the“AIFMD”),allinvestmentfundsnowfallintooneof thefollowingtwocategories:UCITSfundsorAlternativeInvestmentFunds(“AIFs”).PIFs–ahome-grownMalteseproduct–constitutea distinctsub-classofAIFsandboastalighter,moreflexibleregulatoryregimethanthatapplicabletoUCITSfundsandAIFs.

The‘deminimis’carve-out

ThePIFstructuremaybeavailedofbymanagerswhoseassetsundermanagementfallbelowthethresholdssetoutinArticle3(2)ofthe AIFMD,thatis€100mor€500minthecaseofunleveragedfundswithlock-upperiodsoffiveyearsorlonger.

Thequalifyinginvestor

FollowingrelativelyrecentchangesintroducedintheMalteseregulatoryframework,thereisonlyonetypeofPIF–PIFstargeting ‘QualifyingInvestors’.Inordertobeeligibleforinvestmentina‘QualifyingInvestorPIF’,aninvestormustinvest€100,000inthefund(or thecurrencyequivalent)andhavenetassetsinexcessof€750,000.

Investmentcompartments

ThetypicalstructureemployedinthesettingupofaPIFisgenerallyamulti-fundSICAV.Amulti-fundSICAVstructureoffersthepossibility ofsetting-uptwoormoresegregatedsub-fundswhereeachofthesub-fundsmaypursuedifferentinvestmentstrategiesandobjectives. Notably,theassetsandliabilitiesofeachsub-fundaretreatedasapatrimonyseparatefromtheassetsandliabilitiesoftheothersub-funds oftheSICAV.Thiseliminatestheriskofcross-contaminationbetweenthesub-funds.

Management

APIFmaybeinternallyorexternallymanaged.InthecasethataPIFisexternallymanaged,thisfunctionwillneedtobeundertakenbya licensedMaltesedeminimisAIFM,anEU/EEAdeminimisAIFMwhichissubjecttoregulationinanequalorcomparablelevelintheEUor EEAMemberStateconcerned,orathirdcountryAIFMwhichisauthorised/licencedinathirdcountrywithwhomtheMFSAhassigneda co-operationagreementintermsoftheAIFMD.InthecasethatthePIFisinternallymanaged,theinvestmentmanagementfunctionis undertakenbyaninvestmentcommitteeconsistingofatleastthreeindividualsappointedbytheboardofdirectors.Daytodayportfolio managementmay,inturn,bedelegatedtooneormoreportfoliomanagers.

Noinvestmentrestrictions

ThereisagreatdegreeofflexibilityintermsoftheunderlyingassetswhichcanbeinvestedinbyaPIF.InpracticelocallylicensedPIFs investinabroadrangeofassetsincluding,amongstothers,privateequityinvestments,realestate,fixedincomesecurities,equities, structuredinvestments,investmentfundsandothers.ItisalsopossibleforPIFstoinvestincryptoassets.

Serviceproviders;localsubstance

Intermsofserviceproviders,thePIFwillneedtoappoint:(a)aboardofdirectorsconsistingofatleastthreepeople(atleastoneofwhom mustberesidentinMalta);(b)ifthePIFistobeexternallymanaged,aninvestmentmanager;(c)ifthePIFistobeinternallymanaged,an investmentcommitteeconsistingofatleastthreeindividuals(atleastoneofwhommustberesidentinMalta);(d)acomplianceofficer (whomustbearesidentinMalta);(e)aMLRO;(f)anadministrator;(g)acompanysecretary;(h)anauditor(who/whichmustbebasedin Malta).

Intermsoflocalsubstance,thePIFwillneedtohaveatleasttworesidentsinvolvedasanabsoluteminimum.MFSAmaypushformore localsubstance,onacase-by-casebasis.

NAIFs

Overview

Afewyearsback,theMFSAlaunchedtheNAIFframework.NAIFsareacategoryofcollectiveinvestmentschemeswhichareexemptfrom licensingrequirements.Indeed,NAIFsarenotauthorisedbytheMFSAbutmerely–asthenameconnotes–notifiedtotheMFSA.That said,NAIFsarefullyrecognizedAIFsforthepurposesoftheAIFMD,meaningthattheycanbedistributedthroughoutEuropebymeansofa marketingpassport.

TheintroductionoftheNAIFregimehassignificantlycondensedtime-to-market,allowingfundstolaunchwithinafractionofthetimethat alicensedfundcanlaunch.

BurdenofensuringcompliancelieswithAIFM

NAIFscanbemanagedbyMalteseAIFMsandEuropeanAIFMsexercisingapassportrightinMalta.NAIFsmaynotbeself-managed.

GiventhatNAIFsarenotifiedandnotlicensed,theburdenofensuringcompliancewiththeAIFMDrestswiththeAIFM,whichwillbe requiredtoconductduediligenceonallserviceprovidersandensurethattheprospectusofthefundmeetsthedisclosurerequirements imposedbyArticle23oftheAIFMD.

Investmentcompartments

ThetypicalstructureemployedinthesettingupofaNAIFisgenerallyamulti-fundSICAV,whichhasthebenefitssetoutabove.

Eligibleinvestors

NAIFsmayonlybemarketedto‘professionalinvestors’(asdefinedinMiFIDII)and‘qualifyinginvestors’whichinvestaminimumofEUR 100,000(orthecurrencyequivalent)andhavenetassetsinexcessofEUR750,000(orthecurrencyequivalent).

Timelines

NAIFscanbeupandrunningwithin10daysfromthesubmissionofanotificationpacktotheMFSA.

Eligibleinvestments

TherearemerelylimitedrestrictionsonthetypesofassetclassesinwhichaNAIFmayinvest,and,inpractice,NAIFsmaybestructuredto investinabroadrangeofassets,includingrealestate,privateequityinvestments,venturecapitalinvestments,amongstothers.

Taxation

CAMILLERIPREZIOSIADVOCATES

Funds(bothPIFsandNAIFs)investingpredominantlyoutsideMaltaareexemptfromincometaxandcapitalgainstaxontherevenue generatedfromtheirinvestments.Non-residentinvestorsareexemptfromincometaxandcapitalgainstaxonthedividendsandincome receivedfromMaltesefunds.Inaddition,nostampdutyispayablebynon-residentinvestorsonatransferofunitsinMaltesefunds.

CAMILLERIPREZIOSIADVOCATES

PROPOSEDTEAMSTRUCTURE

Weaimtoprovideateamoflawyersthatcanattribute thenecessaryskill,experience,depthofknowledgeand expertiserequiredforanyfundsetup.Ourapproachisto providethenecessarylevelofseniorityandexperienceas therespectivetasksduringtheprojectmayrequiresoas toensurethatwecanprovidethebestpossibleadvice andassistance,atacompetitivecost.Thisrequiresusto selectateamoflawyersthatbetweenthemcombinethe necessaryblendofskills,experienceandexpertise.

Wetrustthatthisinformationsheetprovidesyouwithsufficientdetail.However,shouldyouhaveanyqueries,pleasedonot hesitatetogetintouch.

AndrewCaruanaScicluna(Partner)

andrew.caruanascicluna@camilleripreziosi.com

KyleDebattista

kyle.debattista@camilleripreziosi.com

RachelColeiro

rachel.coleiro@camilleripreziosi.com

LukeMizzi

luke.mizzi@camilleripreziosi.com

(+356)21238989 https://www.linkedin.com/company/camilleri-preziosi/ http://camilleripreziosi.com/en/home

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