Malta Private Securitisation Cell Company

Ccmalta Default


Since joining the European Union in 2004, Malta has developed into an innovative and reliable financial services centre, hosting a variety of financial services businesses and structures including securitisation structures. The Malta Financial Services Authority (MFSA), is the Island’s single regulatory authority regulating and supervising all financial services activities.

Malta Private Securitisation Cell Companies are used for all kinds of securitisation transactions. This structure allows for assets and liabilities of one cell to not be attributable to any other cell without having a distinct separate legal personality. Furthermore for any cell, there is no legal recourse between creditors of another cell to its assets. Each cell may also have its own base currency and each individual cell may only enter into securitisation transactions from the same originator.

Malta’s legal framework provides for a range of securitisation transactions under a secure regulatory framework and offers various legal and international tax benefits – making it the jurisdiction of choice for setting up of tax neutral securitisation vehicles.






Country Highlights

GDP GROWTH: 6.3% in 2015 STAMP DUTY: Exemption Applicable to Securitisation Vehicles
TIMEZONE: Central European Time Zone (UTC+01:00) FINANCIAL SERVICES FRAMEWORK: EU and OECD Approved
INDUSTRY: Fastest Growing Securitisation Jurisdiction with >100% Increase
in Vehicles over the Past Year
TAX REGIME: EU and OECD Compliant
BANKING SYSTEM: 10th Soundest System in the World (WEF) REGULATOR: Flexible and Approachable


Legal Basis

Malta Private Securitisation Cell Companies (SCCs) are regulated by the Securitisation Cell Companies Regulations, 2014 (the “Regulations”) and the Securitisation Act, 2006 (the “Act”). Together they provide an innovative regime in the setup of securitisation transactions. The “Cell Structure” offered in Malta for Securitisation vehicles are such that allow assets and liabilities to be segregated under one legal structure.

The Act provides that no proceedings taken against the Originator under any law, including any dissolution and winding-up proceedings will have any effect on the Special Purpose Vehicle (SPV), any securitisation assets acquired or risks assumed by the SPV, as well as any cash flow or other asset of the SPV, and any payments due by the underlying debtors in connection with the securitised assets.

The Regulations lay out that the cells created under an SCC hold a separate patrimony from that of the company and of any other cell. Therefore the assets of one cell may not be used in lieu of the liabilities of another.


Benefits

  • Fast process: 3 weeks
  • Separate Patrimony for each Cell
  • Tax Neutral
  • VAT Neutral
  • No Local Presence Requierd
  • Notification Process Only


Eligibility

  • Securities
  • Securitised Assets
  • Legal Form
  • Offering Documents


Process & Timeline




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Key Contacts

Mr Nicholas Warren

Senior Manager, Financial Services, Blockchain & Fintech

+356 22056415

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