Setting Up of Hedge Funds in Malta

The Maltese equivalent to a hedge fund is a Professional Investor Fund (PIFs). Malta’s sophisticated regulatory regime ensures a light but strong regulatory environment for PIFs to operate.

Maltese legislation allows for various types of funds to operate as PIFs. PIFs can be serviced by overseas providers including Fund Managers, Prime Brokers, Custodians and Administrators.

Advantages of PIFs:
- No investment restrictions
- No leverage restrictions in certain cases
- No Custodian in certain cases
- May be operated from overseas
- Low reporting requirements
- Listing on any recognized exchange
- Possibility of self- managed PIFs
- Tax efficient structure

Significant advantages for PIFs:
- Low initial capital requirements
- Low application & registration fees
- Low annual registration fees
- Competitive professional fees
- Competitive listing fees

License should be processed within two weeks of the submission of all the documentation. The whole process of drafting, registration and licensing should take approximately 5 weeks from date of receipt of all the documentation.

At Kosco Management Ltd we are able to offer a the following services to aid you in the setting up of the fund
• Due diligence exercise
• Assistance with all the relevant submission forms
• Handling of your application for a fund license with the MFSA
• Preparation of Memorandum and Articles
• Fund company registration
• Preparation of the Fund offering document
• Arranging legal advice
• Fund administration setup
• Monthly NAV calculations
• Liaison with your investors
• Submission of all the regulatory documentation
• Provision of the local registered office