CDF Advocates


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:
1. the efficiency and flexibility of the Malta Financial Services Authority
2. EU membership as from 1st May 2004
3. local and international stock exchange listing options
4. an exemption from income tax and capital gains tax at fund level and at non-resident investor level
5. quality support services
6. low set-up and maintenance costs
7. fund service-providers may be based in any MFSA recognized jurisdiction
8. the possibility to redomicile a fund from another jurisdiction.
Our law firm has responded to the needs of the regulator and the market by providing specialised compliance services for UCITS.
For further information on the legal regime governing investment funds, please visit the website of the Malta Financial Services Authority ( – choose “Securities” from the navigation menu and then choose “Guide to Regulation”). For other information on collective investment and stock exchange listing please click here



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