The sustainability of Malta's fund sector: a critical analysis

Abstract

The purpose of the study has been to analyse the sustainability and long-term vision of the competitive factors in Malta's Fund Industry and hence evaluate the potential effects on the sector due to the impending challenges facing Malta's competitiveness. The sustainability of these competitive stances will be analysed to conclude whether the fund sector's vision is set for the longer-term. To achieve the aims of the study, secondary data was obtained through desk research. This involved examining and analysing books, journals, reliable online sources, and other publications. Based on the formulated literature review, field research was carried out to obtain the primary data. As a major means of attaining primary data, a quantitative approach was undertaken by means of a survey distributed via electronic mail to fund professionals. Additionally, qualitative research in the form of two semi-structured interviews complemented the study in order to more specifically draw conclusions on the quantitative aspect and hence the literature review. The literature review highlighted the regulator, regulatory framework and taxation benefits as being the two main competitive factors driving fund business to Malta. Additionally, secondary research has shown that there exist potential challenges to these factors. Primary research conducted with fund professionals substantiated that are true tests facing the Malta Fund industry's in longer-term.