Professional Investor Funds
A PIF is a type of Collective Investment Scheme (CIS) that, generally, takes the form of an open-ended investment company in the form of a SICAV.
The principal legislation that affects PIFs is the Investment Services Act, 1994 (ISA).
The Malta Financial Services Authority (MFSA) is responsible for the licensing, regulation and supervision of PIFs.
Indeed, if a PIF appoints functionaries (i.e. the Manager, Custodian, Prime Broker, Investment Advisor etc.) and, consequently, does not itself carry out any investment services licensable activity, it is regulated less rigidly that other retail funds in Malta.
PIFs are very flexible in that different sub-funds may be created, each having separate patrimonies in terms of the relevant Maltese legislation. PIFs in generally having the majority of their assets situated in Malta benefit from a tax neutral treatment in that no income tax is payable in Malta, and no withholding taxes are paid in the event of any distribution from a fund or sub-fund.
The process in order to acquire a PIF licence is quite straightforward, and this would include preparation of the standard company incorporation documents, together with an Offering Memorandum wherein, inter alia, the full details on the PIF’s officers, fund strategies and objectives are clearly outlined.
For further information on PIFs and their practical implications please contact:
Peter Griffiths
Partner - Griffiths & Associates
DISCLAIMER:
This document contains information for general purposes and does not establish a professional services relationship.
Whilst any reasonable care has been in providing information in it, no responsibility or liability is accepted by Griffiths & Associates for any omissions or actions by any person relying upon information in it. You should always take professional advice before making business or personal financial decisions.