Professional Investor Funds (PIFs) are a non-retail type of collective investment and therefore require a Collective Investment Scheme licence under the Investment Services Act 1994. PIFs can be set up as an open or close-ended investment company, a limited partnership or a unit trust and are not subject to any investment or borrowing restrictions. They may only be promoted to authorised or experienced investors as defined by the MFSA.
PIFs set up in Malta are required to issue an Offering Document, intended to provide sufficient information to enable a potential professional investor to make an informed investment decision.? A Fund Manager and a Custodian need not be appointed.
Current legislation classifies collective investment schemes as Prescribed funds, being funds which consist of more than 85% of the value of their assets situated in Malta; and Non-prescribed sub-funds- all other funds that do not have that do not qualify as prescribed funds.
Prescribed funds are taxed at 15% on bank interest and 10% on other income or interest sourced from Malta Government Securities or Bonds or other Government corporations. Non-prescribed funds are exempt from both income and capital gains.
For further information, kindly contact Dr Tonio Fenech.