Professional Investor Funds

professional investment funds

A Professional Investor Fund (PIF) is a type of Collective Investment Scheme (CIS) that, generally, takes the form of an open-ended investment company in the form of a SICAV. The Malta Financial Services Authority (MFSA) is responsible for the licensing, regulation and supervision of PIFs.

Indeed, if a PIF appoints functionaries (i.e. the Manager, Custodian, Prime Broker, Investment Advisor etc.)  and consequently, does not itself carry out any investment services licensable activity, it is regulated less rigidly that other retail funds in Malta.

PIFs are very flexible in that different sub-funds may be created, each having separate patrimonies in terms of the relevant Maltese legislation.

PIFs in general having the majority of their assets situated outside Malta benefit from a tax neutral treatment in that no income tax is payable in Malta, and no withholding taxes are paid in the event of any distribution from a fund or sub-fund.

The process in order to acquire a PIF licence is quite straightforward, and this would include preparation of the standard company incorporation documents, together with an Offering Memorandum wherein, inter alia, the full details on the PIF’s officers, fund strategies and objectives are clearly outlined.

Highlights of PIFs:

•    Lightly regulated collective investment schemes targeting specific types of private/institutional investors

•    Tax neutral when the sources of the income are non-Maltese, and the investors arte non-Maltese resident

•    Flexibility in form of set up, and also in having sub-funds within structure.