Funds Redomiciliation

Why 

There are various reasons why a fund would want to redomicile (change its jurisdiction) to Malta, these including changes in the political, economic and fiscal environment and/or the need towards transparency and compliance.

Re-domiciliation is allowed from all EU, EEA and OECD member states, as well as other jurisdictions including the Bahamas, Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Guernsey, the Isle of Man, and Jersey.  Malta is proving ever more appealing for promoters / fund managers looking to re-domicile from an offshore to a safe and stable EU onshore jurisdiction.

 

How 

Re-domiciliation of a licensed entity, such as a fund, to Malta requires the authorization from the MFSA and the general procedure will involve the following:

 

  • Application for a licence, including all required relevant documentation in draft form;

  • Progress with the Registrar of Companies, as in case of an unlicensed company;

  • The MFSA would then request certain due diligence and vet the documentation submitted as well as the structure of the existing fund;

  • If there is an 'in principle' approval, the Authorisation Unit of the MFSA would then liaise with the Registrar of Companies so that licensing would occur simultaneously with registration.

Any custody or brokerage agreements could also remain in force, since with some exceptions, Malta allows for the possibility of the service-providers being based outside Malta.

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