Professional investor funds : implications under Maltese law

Abstract

The quest for a wider and more flexible assortment of investment vehicles lead to the introduction of Professional Investor Funds into Malta. As we shall see, a Professional Investor Fund falls under the category of a Collective Investment Scheme. The various differences between a Professional Investor Fund and a retail Collective Investment Scheme will be highlighted. As shall also be shown, Professional Investor Funds are funds dedicated to a particular kind of qualified investors rather than to the general public. The basic characteristics of Collective Investment Schemes will be examined in this dissertation. The tax treatment of such funds, both on the level of the fund and on the level of the investor, will be scrutinised. Though so far only one Professional Investor Fund has been set up in Malta, this is a highly practical investment vehicle, and it would not be surprising if we see an increase in these schemes.