Listing of collective investment schemes in Malta : scope for improvement and lessons to be learnt from Ireland

Abstract

During 2010 the number of licensed collective investment schemes continued to increase with a total number of active funds including sub-funds reaching 410 in 2010. The majority of the new licenses, amounting to 102 were issued to professional investor funds. Malta is gaining the reputation of a domicile of choice for professional investment funds. Additionally, a significant amount of non-domiciled funds are being serviced by Maltese based fund management and administration companies. As at 31 December 2010 the entire population of collective investment schemes listed on the official list of the Malta Stock Exchange amounted to 230 as opposed to the number of listed funds on the Irish Stock Exchange which reached 3,009. Since inception in 1989 the Irish Stock Exchange, has been successful in the listing of investment funds and is widely regarded to be the leading exchange globally for the listing of investment funds recording exceptional annual growth. While the Malta Financial Services Authority is experiencing success in the areas of authorisation and fund administration, in the main these funds have not sought to seek a listing on the Malta Stock Exchange. One queries the reason for the undoubted success of the Irish Stock Exchange as a market leader for the listing of collective investment schemes. Comparing the success of the Irish Stock Exchange to the present performance of the Malta Stock Exchange, it appears that there is much room for improvement in the local regulatory framework for the listing of collective investment schemes as well as in the development of innovative products and choice of different listing options which the Malta Stock Exchange could offer.