Professional Investor Funds - better known as PIFs - are collective investment schemes designed for professional and high net worth investors. Due to the fact that they cannot be offered to the public at large, the law allows for a degree of flexibility in their regard. This because these are funds that can only be offered to a person having the expertise, experience and knowledge to be in a position to make his own investment decisions and understand the risks involved. The law currently provides for a threefold classification of PIFs:
·PIFs promoted to Experienced Investors (or Experienced Investor Funds);
·PIFs promoted to Qualifying Investors (or Qualifying Investor Funds);
·PIFs promoted to Extraordinary Investors (or Extraordinary Investor Funds)
Salient Criteria
The Malta PIF is the Maltese hedge fund equivalent product. It is similar in concept to the Irish QIF and the Luxembourg SIF and is only accessible to investors who can meet certain minimum investment requirements
In essence, it is a Collective Investment Scheme targeted at specliased investors who can invet a minimum amount.
A PIF has to comply with
·the Act (ISA),
·the relevant Regulations and
·the Investment Services Rules
The Investment Services Act 1994 (ISA) is the applicable regulatory framework for
·Investment services providers
·Collective investment schemes (“CIS”), including PIFs.
Such license provides considerable advantages to such operators setting up funds wihtin our shores. Besides providing the opportunity to operate from a EuroMed country, fully integrated within the EU and with a European currency, Malta also offers additional advantages, including favourable tax arrangements, favourable personal taxation systems for professional financial services providers and other business and financial incentives.
A detailed presentation on the Malta Investment Services License can be obtained by logging or registering into our portal.