Financial Services

Financial Services

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The success being enjoyed by Malta as an international financial services centre is founded on a set of policies that have been strongly influenced by its European Union membership, the development of a single European market in financial services and the adoption of the Euro in 2008. Within this context, Malta’s financial services industry has become a major pillar of the Maltese economy, and is increasingly becoming an important contributor to Malta’s economic growth and reputation. Moreover, the euro adoption has helped Malta remove the conversion cost, allowing businesses and individuals to conduct (or execute) previously unprofitable trades.

Alternative Investment Fund Managers Directive

The financial services industry experienced one of the biggest legal developments which was brought about by the introduction of the Alternative Investment Fund Managers Directive (AIFMD) in 2011. In this regard, Malta was one of the first EU jurisdictions to formally finalise the implementation of this directive. The implementation of such into the national investment services law is considered to be of vital importance for the continuous development of Malta’s alternative investment fund business, which has been growing since the country’s accession to EU, as this ensures that all current and potential fund managers have access to the latest legislation.

European Fund Domicile

Malta’s reputation as a European fund domicile is rising fast, with an increasing number of funds choosing to set up on the island. Malta was in fact named 'most favoured domicile in Europe' for investment funds in the Hedge Funds Review Service Provider Rankings in both 2013 and 2014. The Malta Financial Services Authority’s (MFSA) regulatory regime through the Investment Services Act allows for the setting up of two principal classes of schemes, namely, Retail Schemes and Professional Investor Funds (PIFs). It has positioned Malta on a level playing field with other European Union countries, and introduced passporting rights so that investment services and UCITS schemes may be registered in Malta and passported to any EU country. This increased interest has not only attracted funds to be registered here, but also a large number of fund managers and administrators who are recognising Malta’s potential to become one of the leading European destinations for fund registrations, management and administration.

European domicile

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Investment Services Act

Investment Services in Malta are regulated by the Investment Services Act (ISA) as amended by Act XXII of 2014. The Act provides the statutory basis for the licensing and regulation of persons and companies wishing to set up investment service undertakings and collective investment schemes. An ‘investment service’ is defined by the ISA as any service falling within the First Schedule to the Act when provided in relation to an instrument. The provision of an Investment Service in relation to an instrument triggers a requirement for the obtainment of an Investment Services Licence from the MFSA.

Investment services

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How can we assist?

Nexia BT can provide advice on the requirements pertaining to all investment services including: assisting through the licensing approval process, advising on the tax implications arising from investment service activities and tax restructuring, the incorporation of the appropriate corporate structures, coordinating with the Malta Financial Services Authority - the sole regulatory body for banking, investment and insurance business in Malta, and assisting in understanding the obligations arising under Maltese prevention of money laundering rules.

Disclaimer: This marketing material has been issued by Nexia BT, having registered address at The Penthouse, Suite 2, Capital Business Centre, Entrance C, Triq taz-Zwejt, San Gwann SGN 3000, Malta. Any information within this brochure should be taken as a general guide only and should not be taken as advice and its application to specific situations will depend on the particular circumstances involved. Readers are recommended to seek professional advice and should not rely on information provided in this brochure as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Nexia BT accepts no responsibility for any errors or ommissions it may contain, whether caused by negligence or otherwise, or for any losses, however, caused, sustained by any person that relies upon it. BTI Management Limited is a registered as a Company Service Provider by the Malta Financial Services Authority. BT International Limited is authorised by the Malta Financial Services Authority to provide fiduciary services which do not include acting as a Trustee. Both companies form part of Nexia BT Group.

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