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- New 'extraordinary investor' fund for investors with $1 million
- Fast-track approval - within three business days
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Malta, one of Europe’s emerging hedge fund domiciles, has launched new rules for professional investor funds (PIFs) following a consultation earlier this year. The Investment Services Rules for Professional Investor Funds, which came into force on 1 November, provide for three classes of Funds: Experienced Investor Funds, Qualifying Investor Funds and a new category of Extraordinary Investor Funds. The ‘Extraordinary Investor’ regime is an offshoot of the existing PIF regime but subject to lighter regulatory requirements than those applicable to PIFs.
The key features of the Extraordinary Investor regime are:
- Fast-track approach; applications reviewed within three working days
- Eligibility requirements: a body corporate, partnership, unincorporated body, trust or individual with net assets in excess of $10 million
- Minimum investment: $1 million or equivalent in another currency (minimum investments for Experienced Investor and Qualifying Investor Funds are $20,000 and $100,000 respectively)
The Rules consist of two parts governing the application process and standard licence conditions for PIFs. PIFs operating under the current rules have until July 2008 to come into line with the new regime.
Malta has becoming increasingly attractive as a hedge fund domicile owing to its flexible approach to regulation, English-speaking workforce, attractive tax regime, competitive costs, and advanced legal structures, which allows PIFs to take several different legal forms. According to recent figures from the Malta Financial Services Authority, 88 hedge funds have been established in Malta under the PIF framework.
To view the new PIF rules, click here: Malta Financial Services Authority: Rules for Professional Investor Funds.
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