New Type of Investment Fund in Malta

New Type of Investment Fund in Malta

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Some Good Piece of News from MFSA:

Notified Professional Investors Funds Entry to the Market within 10 Days!

The Malta Financial Services Authority (MFSA) just rolled out a new setup for Notified Professional Investor Funds (NPIFs) on December 18, 2023.

NPIF combines the attractiveness of the familiar structure of the Professional Investor Fund (PIF) with unprecedented launch speed. The distinctive feature of NPIF is the ability for a swift market entry, which is crucial for investment strategies requiring promptness.

While both NPIF and PIF (Professional Investor Fund) target almost the same type of investors, there is a core difference: PIFs go through the regular licensing hoops, facing all that serious scrutiny. On the flip side, NPIFs take the breezier route with a notification procedure, making it quicker to dive into the market. 

Fund managers love this speedy approach, and guess what? The MFSA adds NPIFs to the NPIF list within just 10 working days after getting the notification request – now that’s efficiency! 

Unlike the old-school funds, NPIFs’ are trusted to handle marketing or offering docs independently. This quick process lets fund managers jump into the market pronto and grab those emerging opportunities.

Let’s break down the framework. NPIFs aren’t for your everyday retail investor – they’re custom-made for investors and can be run by a de minimis Alternative Investment Fund Manager (AIFM) licensed in Malta, a de minimis AIFM authorized in an EU or EEA State, or a third country AIFM authorized in a jurisdiction rocking a bilateral cooperation agreement with the MFSA or a memorandum of understanding on securities. 

In a nutshell, this fresh framework is all about looking ahead and making life sweet for investors diving into NPIFs in Malta. It’s like a balancing act, giving you enough regulatory wiggle room while keeping a watchful eye, creating a vibe that’s just perfect for exploring a bunch of investment opportunities.

Cheers to the new wave of NPIFs in Malta! 

Click here to view the February newsletter