SICAVS under Maltese law : an EU-friendly investment tool

Abstract

The body of this thesis deals essentially with the regulatory aspect of SICAVs under Maltese Law, under Community Law and the harmonization process between the two. CHAPTER 1 deals with the SICAV as a collective investment scheme. It explains the concept of collective investment and the potential benefits that can be detracted from such an investment. A classification is made of the types of schemes that may be set up. The main players that feature in collective investment schemes as well as a historical development are also discussed. Finally an analysis of the regulation of a collective investment scheme under the Investment Services Act is carried out. CHAPTER 2 goes into the regulation of the SICAV 'per se' under the Companies Act explaining certain elements that distinguish it from other companies under the Act. The chapter also goes into a consideration of the different types of permissible setups for a SICAV. CHAPTER 3 explains how SICAVs are regulated on a Community level. Focus is made upon the stance that the European Union has taken with respect to the Financial Services sector. The chapter also goes into the merits of various directives, with particular emphasis being made on the UCITS Directive and its amending directives. CHAPTER 4 outlines the evolution of the Maltese SICAV based on the changes that have been made in local legislation. Following Malta's accession to the European Union, this chapter in particular considers the changes which have been made in Maltese Law relating to SICAVs and with the view of incorporating Community Law principles. CHAPTER 5 offers a conclusion on the matter of whether a Maltese SICAV is indeed an investment tool which is in line with the European Union's objectives for the financial sector. It therefore analyses whether the changes made in Maltese Law have helped in this regard and also considers any shortcomings. The chapter briefly highlights the advantages of investment in a SICAV compared to other collective investment schemes and demonstrates how this investment tool is proving more and more popular in the fund industry.