Thought Leadership

Deal or no deal?

For some, the most recent festive winter season had a different feel to the usual activities, not only due to the global pandemic that is COVID-19, but also because Christmas Eve was particularly marked with a last-minute Brexit deal finally reached between the EU and UK.


las, there are still certain significant decisions to be made, particularly when it comes to financial services, amongst other sectors, which as a result leaves the only certainty in this area to be the uncertainty that still lingers.

Many in the financial services industry had adopted and now continue to maintain their ‘wait-and-see’ stance. Others however, in the funds and asset management industry, particularly those working closely with the EU market, had enough of the uncertainty and took the decision to relocate their business or set up operations within EU member jurisdictions, so as to ensure uninterrupted business continuity, with €1.5 trillion assets already migrated to EU countries.

It is no secret that Dublin has been a net beneficiary of such relocations, followed by Luxembourg which jurisdictions are traditionally the go-to European hubs for funds and asset management. However, another popular, but perhaps less known jurisdiction which has also been an attractive option to those looking to set up within the EU, is Malta – a little drop of an island in the centre of the Mediterranean, boasting a robust infrastructure and ideal environment for funds and asset management operations.

Why Malta?

For British operators in particular, Malta has proved a popular option as an EU alternative fund domicile of choice in Brexit planning. This due to various factors including a bond between the Maltese and British which goes back many years. As a former British colony, Malta has adopted English as an official language, and the country’s administrative and legal system also reflects many similarities clearly influenced by this history. 

The relationship between the two countries does not stop there. With the UK having exited the EU, the Malta-UK relationship is still set to thrive due to a number of bilateral agreements between the two countries. In fact, there are currently an estimated 13,000 British nationals living in Malta, of which 5,000 are active in the labour market, and over 600,000 tourist arrivals from the UK each year (pre-COVID), representing over a quarter of tourist visits annually The environment for business is also a very positive one evidenced by presence of a number of UK firms on the Island across various sectors.

This is not to say however that the appeal of Malta holds only for British operators. On the contrary, in fact, for funds and asset management specifically, Malta is being increasingly featured as the alternative domicile of choice, particularly for the small-to-medium sized managers. Thanks to the pro-business environment, economic stability and regulatory robustness that characterise the jurisdiction, Malta presents itself as an ideal fund domicile, particularly in the niche it has built specialising in catering for the smaller players in the industry. In fact, Malta presents a number of efficient solutions in terms of costs, time-to-market considerations, regulatory requirements, unique flexible structures, favourable taxation, and other considerable advantages allowing smaller operators to enter and thrive in the increasingly competitive industry that is asset management. 

With unique fund typologies, among other innovations, available exclusively in the Maltese jurisdiction, Malta continues its aim to stay ahead of the curve and provide asset managers with another attractive solution, be it in terms of less onerous yet robust regulation, and fast-track solutions to setting up an Alternative Investment Fund within the EU. 

The future of aviation is strictly tied to several factors

BOV Fund Services

As Malta’s leading fund services provider, BOV Fund Services is well-positioned to provide a full suite of fund administration and back office services to funds and asset managers, from NAV calculation, maintenance of shareholder registry, and preparation of financial statements, to company secretarial, registered office services, regulatory reporting and more.

Our team of industry leading specialists are also available to provide unique solutions tailored to your needs, with our one-stop turnkey service for the setting up of funds and asset management operations in Malta.

Should you wish to learn more about how Malta ticks all the boxes as an alternative European fund domicile, and why the jurisdiction is particularly attractive to those managers who perhaps may find it somewhat increasingly challenging to set up in the more traditionally established jurisdictions such as Luxembourg and Ireland for instance, we invite you to contact us at the details provided below. One of our experts will be very pleased to hold a non-committal introductory discussion with you to delve deeper into the offerings of the Maltese jurisdiction, provide further information, and explore how Malta’s leading fund services provider may assist with your requirements.

The future of aviation is strictly tied to several factors

Contact details

BOV Fund Services Limited

TG Complex,

Suite 2, Level 3

Triq il-Birrerija

Central Business District Birkirkara,

CBD 3040, Malta

Contact Us