A presentation about setting up investment funds

1. Malta – A European Fund Jurisdiction2011 Muscat Azzopardi and Associates, Advocates

2. Malta – a general overview An EU Member State since 2004; Highly reputable financial services centre; Single regulator for Banking, Securities and Insurance– highly accessible and pro-business; Service-driven environment; Relatively low overall costs; Multilingual and professional work-force – an English speaking country with professionals usually speaking four languages; Ideal for UCITS IV schemes as well as non-retail funds; The most competitive tax structure within the EU, yet fully OECD compliant and not a tax haven; An excellent network of double taxation agreements.

3. Why set up a fund in Malta? A flexible yet robust regulator – highly accessible; Very quick time to market – around four weeks, with an “in-principal approval” for Professional Investor Funds (PIFs) within a maximum of seven days; NO income tax, capital gains or withholding tax as long as assets not based in Malta; A very cost-competitive jurisdiction – relatively low set up and administration fees; Quickly becoming a hub for managers and administrators – tax and licensing advantages; Clear legislative structure; Possibility of self-managed schemes; Asset Manager need not be based in Malta; Custodian of a PIF may also be based elsewhere.

4. Comparison with Luxembourg and Dublin – Qualifying PIF

5. Malta’s Regulatory Framework 1. Professional Investor Funds (PIFs) 2. UCITS IV compliant Retail Funds

6. Professional Investor Funds Suitable vehicles for Fund Promoters wishing to set up Hedge Funds, Private Equity Funds, Funds of Hedge Funds, Venture Capital Funds, Investment Property Funds; Three classes of PIF’s aimed at various investor profiles ranging from quasi-retail to institutional investors; Funds may be set up as a SICAV, a limited partnership, contractual fund or a unit trust;

7. Professional Investor Funds

8. PIF features at a glance

9. UCITS IV funds Malta has already implemented legislation to implement UVITS IV measures. These include; Introduction of a full EU passport for UCITS Managers Quicker and simplified passporting for UCITS schemes Possibility of cross-border merger of UCITS schemes Possibility of Master-Feeder UCITS structures Simplified information for investors – introduction of Key Investor Information Document

11. Assistance with submission forms

12. Fund license application (with MFSA)

13. All meetings with MFSA as required

14. Drafting of Memorandum & Articles

15. Registration of Fund Company

16. Drafting of the Fund Offering document

17. Setting up of the fund's administration

18. Provision of the local registered office