What they say about Malta

Service providers, fund administrators and legal firms explain why they think Malta is increasingly becoming a jurisdiction of choice.

Joseph Saliba, partner, MAMO TCV
Malta’s extensive network of double-taxation agreements, says Saliba, gives the jurisdiction a competitive advantage. He agrees with others that Malta can cater for the smaller, start-up funds in terms of cost. He says the approach of the regulator is also important. The Malta Financial Services Authority (MFSA) takes a proactive approach to regulation while being supportive of innovation within the industry. “The MFSA will listen to what managers and the industry says,” notes Saliba.

Alan Richards, CEO and director, HSBC Bank Malta
Malta is a “well-kept secret” says Richards in relation to its ability to provide services to the alterative fund industry. He says the very strong level of education coupled with good technical infrastructure gives Malta the ability to put together a compelling and attractive package. Internationally Malta “punches above its weight” and has a pragmatic and strong regulator with a reputation for quality. Richards notes the technology infrastructure is “very good”. He says an increasing number of fund managers are “exploring the potential benefits of Malta”.

Kenneth Farrugia, general manager, Valletta Fund Services
“Malta has had a good year despite the crisis. It has seen growth in the number of funds and fund managers and there has been a significant increase in business within the fund sector,” notes Farrugia. Because Malta is small and nimble, it can react fast to changes and innovation, says Farrugia, adding that the regulator is able to react quickly to developments within the industry. The highly skilled and competitively priced workforce available in Malta is an attractive proposition for service providers and fund managers.

Joseph Ghio, associate, Fenech & Fenech Advocates
Malta has a good reputation with a hands-on approach to regulation that is balanced. Other advantages offered by Malta include a solid banking system, an English speaking and skilled workforce, a favourable time zone, numerous service providers and membership of the eurozone. As one of the few hedge fund jurisdictions to see growth in 2009, he says Malta has now reached critical mass that allows for significant exponential growth in the short term

Mark Watson, CEO, Mediterranean Bank, Malta
Malta offers the most tax-efficient onshore jurisdiction in Europe, says Watson, and is “a very attractive European jurisdiction” that is politically stable with a robust banking system. It has been given a clean bill of health by Organisation for Economic Co-operation and Development and the International Monetary Fund. Watson is also impressed by the regulator’s approach and level of knowledge of the industry. He says the MFSA is “very approachable” and this makes a huge difference when setting up in the jurisdiction.

Anthony O’Driscoll, managing director, Apex Fund Services

Running costs in Malta, says O’Driscoll, are a fraction of that of other European jurisdictions. He believes this gives Malta an advantage, particularly with start-up funds that are watching the bottom line and need to keep costs low. “Malta is very much a business-centred and well-regulated domicile. It offers an attractive combination of cost, speed of setting up and quality service providers,” says O’Driscoll.

Max Ganado, managing partner, Ganado & Associates
Malta believes in co-operation, competition and innovation among EU states, says Ganado. It is a jurisdiction committed to high standards of disclosure, accountability and governance. He believes accessibility to the regulator, the speed of processing fund applications and a competitive cost structure coupled with a sophisticated legal structure and the use of the English language are key competitive advantages.