Getting your Fund Licensed in #malta
Many fund managers will probably find the licensing process daunting. In Malta funds are regulated and supervised by the Malta Financial Services Authority, the single regulator for financial services in Malta.
The regulatory part
A meeting is first held with the Authority to discuss the strategy of the fund, who will be involved and other plans promoters would have for the fund. Such meeting is very valuable in order to get guidance and feedback from the Authority in relation to any hiccups that might be encountered during the licensing process. Following the meeting, once all application documents are prepared they are to be submitted through an online portal making it easier for both the Authority and the entity submitting these documents. When drafting offering documentation it is very important to make sure all necessary detail is included, including any risks, fees, strategy details amongst others.
Whilst reviewing documents submitted the Authority might request additional documentation or clarifications prior to reaching a final decision. Once all matters of the application are settled the MFSA issues a letter to the fund. The Authority might indicate minor additional changes that it requires in the fund structure before issuing the licence.
Once the fund is licensed it will be ready to receive initial investments until such time that the Initial offering period ends and the fund can commence its operations.
What to keep in mind
Before applying for a fund license we suggest you go in detail in all options making sure you opt for the most suited one that would help you achieving your objectives.
Complete documentation upon application will make the licensing process easier and without unnecessary delays.
It is very important to work on bank account opening forms and other service provider onboarding processes so as to be ready by the time the fund is licensed.
In order to avoid delays following the licensing of the fund we suggest you start preparing for the launch with the fund administrator earlier, providing them with investor profiles if in hand, and agreeing on processes and procedures
Reach out on queries@fexservfunds.com if you would like to know how our team can assist. At Fexserv Fund Services we have assisted many fund managers through the licensing process.
