Malta has published new guidelines for redomiciling offshore funds to the Mediterranean island state, amid what it said was growing demand from providers for its services.
The financial regulator, Malta Financial Services Authority (MFSA), said the freshly issued guidance provided a “a simple, one-stop procedure to be followed by funds intending to redomicile to Malta.”
The regulator highlighted the simplicity and flexibility of its rules as being among the reasons for increased interest. However, the threat of new fund taxes in offshore centres that are struggling to balance their books is also thought to be a strong driver of the demand as fund managers seek new low or no tax bases.
Malta levies zero income and capital gains tax on most funds with 15% or more of their assets invested outside the country.
The MFSA said insurance and securities firms in particular had been using Malta’s redomicilation legislation since it came into force in 2002 to move their base to the country. The laws had proved particularly popular, according to the MFSA, because they allow transferring companies to retain the same legal personality.
Malta said one of the attractions for fund managers was that its regime allowed them to have external administrators and custodians, in contrast to some other offshore fund jurisdictions that require local service providers are used.
The total number of non-Maltese fund managers licensed by the MFSA at the end of 2009 was 66, of which 11 had transferred from offshore centres such as Jersey, Guernsey, Bermuda and the Cayman Islands.
Among the largest players are Blue Gold, Oceanwood, Pamplona, DAM Capital and Liongate, which collectively manage in excess of US$10 billion) and all have licences to operate in Malta.
In 2008, seven fund managers from offshore centres relocated to Malta and 11 in 2009.
Sources in Malta’s fund’s industry said there was a notable uptick in enquiries about moving funds to there in the second half of 2009.
