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What Are the Key Developments in Malta’s Fund Management Sector?

In recent years, Malta has rapidly evolved into a leading hub for fund management and related financial services. This transformation is part of a deliberate strategy to enhance Malta’s status as an attractive location for global financial activities.

The Malta Financial Services Advisory Council (MFSAC) plays a pivotal role in this evolution. Composed of a mix of influential public and private stakeholders, the MFSAC includes key players like the Malta Financial Services Authority, Malta Business Register, Finance Malta, the Tax Office, Commissioner of Revenue, and the Malta Stock Exchange, along with various private associations that represent a spectrum of interests in the financial sector.

Their collective goal? To map out Malta’s financial future over the next decade, with a particular focus on fund management and business.

One of the strategic objectives of the MFSAC is to establish Malta as a premier domicile for private wealth management, private equity, and family office services. This focus is supported by a range of regulatory initiatives specifically designed to attract and accommodate investors and financial practitioners.

Here are some of the notable regulatory developments:

  1. The Notified Professional Investor Fund Regime.
    Building on the success of the Notified Alternative Investment Fund Regime, this initiative provides a streamlined process for fast tracking the launching funds in the alternative investment space for deminimis alternative fund managers and non-eu based managers.
  2. The Digital Operational Resilience Act (DORA).
    Scheduled to take effect on January 1, 2025, DORA is already prompting firms to conduct thorough analyses to ensure compliance from the outset. This act is crucial for maintaining operational resilience across digital platforms.
  3. On the governance front, the Malta Financial Services Authority has issued new Corporate Governance Codes and Guidelines for Boards of Directors Overseeing Collective Investment Schemes.
    These guidelines set high standards for board responsibilities, emphasizing effective governance, stakeholder engagement, and robust corporate culture, which includes considerations for corporate social responsibility and environmental, social, and governance (ESG) factors.

To conclude, Malta’s strategic enhancements in the financial services sector not only reinforce its role as a key player in global finance but also open up exciting opportunities for businesses and investors. These developments promise to provide a solid framework for the continued growth and success of Malta’s fund sector.

If you’re intrigued by the possibilities in Malta and are considering establishing financial operations here, LINDEMANNLAW can provide expert guidance. We specialize in setting up tax-neutral securitization vehicles such as investment companies, commercial partnerships, trusts, securitization cell companies (SCC), protected cell companies (PCC), and both public and private limited companies. Our expertise extends to drafting financial instruments, negotiating with financial regulators such as the MFSA, coordinating with paying agents, and pioneering efforts in tokenization through security or asset tokens (STOs).

Contact us to explore how we can assist you in navigating and capitalizing on Malta’s dynamic financial landscape.

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