Malta implemented the UCITS III regime immediately upon accession to the European Union on 1 May 2004. In line with the current interpretation of the UCITS Directive, Malta can offer self-managed funds combined with delegation arrangements. Self-managed funds formed as corporate entities (usually a SICAV) are managed by the Board of Directors, which can in turn delegate a number of management functions to an external management company which is authorised in any EU Member State and recognised in Malta.
At licensing stage the Board is expected to clearly indicate the proposed delegation arrangements. Current practice suggests that as a minimum the Board must have at least one but preferably two local directors who satisfy the “fit and proper” competence criteria and must meet periodically in Malta. The Board should also retain the ultimate supervision of the risk management process through regular reporting to and from the management company and be involved in setting the fund’s policies.
Amongst the foremost reasons to choose Malta as the base for a UCITS fund one can certainly cite: