This is a positive development for the local industry in attracting promoters to set up Fund structures in Malta, given that the offering combines the uniqueness of the Professional Investor Fund regime and the positive elements of the ‘Notification’ route as is already present for the Notified AIF regime. This combination is expected to bring a solution to the market which is more cost effective given that it leverages upon of the regulated status of the Funds’ service providers and the qualified status of the target investors.
In essence, Notified PIFs will be subject to a notification process (hence, similarly to notified AIFs, will not be licensed by the MFSA) and shall be made available only to ‘Qualifying’ (institutional/high net worth) investors. Notified PIFs shall be allowed to engage in any investment strategy except for ‘lending activities’ as defined by the proposed rulebook. At the outset, the Notified PIF Regime seems to be promulgated in a way to have a more proportionate and risk-based approach to the onboarding process leading to a better time to market, as well as lower setup costs, which fully licensed Funds experience.
