REGULATED INDUSTRY SOLUTIONS

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Unlocking Malta’s Regulated Industry Landscape

At Promethean, we empower regulated industry operators to confidently navigate Malta’s dynamic regulatory framework and Malta financial services environment. Whether you’re establishing a new entity or ensuring ongoing compliance, our bespoke solutions are grounded in deep local insight and aligned with the highest European regulatory standards.

Expert Guidance Across All Regulated Sectors

Credit Institutions

Ready to apply for a credit institution license within Malta financial services under the Malta Financial Services Authority (MFSA)? We’ve got you covered. We ensure full alignment with CRD/CRR, EBA guidelines and all local prudential regulations.

Our support includes:

  • Business plan development

  • Governance and internal control structuring
  • Regulatory engagement and submission management

Financial Institutions

We support non-bank financial entities—such as those engaged in lending, factoring, and leasing—in obtaining licenses under the Financial Institutions Act within Malta financial services, ensuring full compliance with AML/CFT requirements and robust risk management practices.

Investment Services

We support firms seeking MiFID II licenses for portfolio management, investment advice, and execution services within Malta financial services.

Our support includes:

  • License scoping and application strategy;

  • Preparation of application packs and regulatory documentation;
  • Drafting of policies and manuals; 
  • Ongoing compliance support.

Collective Investment Schemes & Funds

We specialize in structuring and licensing UCITS, AIFs and Professional Investor Funds (PIFs). Our team works closely with fund managers and administrators to ensure timely and compliant submissions within Malta financial services.

Insurance & Reinsurance

From captives to full-scale insurers, we assist with MFSA licensing, solvency compliance, and governance frameworks for both life and non-life operations within Malta financial services.

Why Choose Promethean?

  • Direct access to regulatory authorities

  • Proven success with MFSA licensing
  • Comprehensive support from application to post-licensing

Malta offers a robust financial services sector, with a stable regulatory environment and EU membership, making it an attractive destination for international businesses and investors. Malta financial services are highly regulated by the Malta Financial Services Authority (MFSA), ensuring compliance with international standards.

Malta provides a wide range of financial services, including banking, investment management, insurance, fintech, and wealth management. Its competitive tax regime, including attractive tax incentives for holding companies and investment firms, makes Malta a prime jurisdiction for cross-border financial activities within Malta financial services.

With its favourable regulatory environment, advanced infrastructure, and high-quality legal and tax advisory services, Malta is becoming an increasingly popular choice for financial services professionals and businesses seeking to expand within the EU and beyond.

Promethean offers the following services

Are you a credit institution looking to set up in Malta?

The establishment of Malta banks or Malta credit institutions, and the pertinent legislation is founded on European Union legislation and is compliant with the Basle Core Principles. Any company which intends to carry out the business of banking under a Malta banking licence shall, prior to the commencement of any such business, file an application for a licence with the Malta Financial Services Authority (MFSA).

 

All applicants seeking a Malta banking licence must ensure full regulatory readiness and compliance with applicable EU frameworks before submitting their application for a Malta banking licence to the MFSA.

An application for a Malta banking licence may be filed for the following types of establishments:

  • branches of foreign banks;

  • subsidiaries being legally independent institutions, wholly or majority owned by a credit institution which is incorporated either in Malta or in a foreign country;

  • joint ventures.

A credit institution licensed or holding an equivalent authorisation in a Member State or EEA State is entitled to exercise its rights under European Union law. Generally, a company shall be granted a Malta banking licence solely if:

  • its own funds amount to not less than € 5,000,000;

  • there are at least two individuals who will effectively direct the business of the credit institution in Malta;

  • all qualifying shareholders, controllers and all persons who will effectively direct the business of the credit institution are suitable persons to ensure its prudent management;

  • the Authority is satisfied that there are no close links between that company and another person(s) which through any law, regulation, administrative provision or in any manner prevent the company from exercising effective supervision of that company under the provisions of the Banking Act.

A branch constitutes a fundamental part of the institution to which it belongs. A licence issued to an institution incorporated outside Malta to operate its banking business through a Malta banking licence branch is consequently deemed to have been granted to that institution as a whole.

 

In the case of an institution whose principal place of business is in a country outside Malta, the Authority may at its discretion consider that the minimum criteria for authorisation for a Malta banking licence are fulfilled if:

  • The foreign banking supervisory informs the MFSA that it is satisfied with respect to the prudent management and overall financial soundness of the applicant; and

  • The MFSA is satisfied as to the nature and scope of the supervision exercised by that country’s relative Authority.

The MFSA will examine the planned business of the proposed Malta banking licence branch, its internal controls, accounting and other records, and personnel and management arrangements. If there are any concerns, the MFSA will discuss them with the applicant and, where necessary, recourse is made to the foreign competent authority. The MFSA may also require information regarding directors, controllers and managers of the overseas institutions operating through branches in Malta, even though these may be less detailed than that required from institutions registered in Malta.

A company which is licensed or which holds an equivalent authorisation outside Malta, and which carries on the business of banking, may establish a representative office in Malta under a Malta banking licence framework only after it has given at least two months’ notice to the MFSA that it intends establishing such office.

The notice under the Malta banking licence requirements ought to specify the name it is proposing to use in relation to the activities of the representative office and the address of such office. Furthermore, the notice shall be accompanied by a certified copy of the authorisation of the company to conduct the business of banking in a country other than Malta. The MFSA may also require the presentation of such additional information or documents as it may reasonably require in line with Malta banking licence regulatory standards.

Financial Institutions

Looking to enhance your financial services in Malta?

Financial institutions refer to non-bank financial institutions, namely institutions which do not fund their activities through the taking of deposits. Such institutions require a Malta financial institution licence if they intend on carrying out any business in or from Malta.

The following is a non-exhaustive list of activities which financial institutions may be licenced to carry out in terms of the Financial Institutions Act:

  • lending (including personal credits, mortgage credits, factoring with or without recourse, financing of commercial transactions including forfaiting);

  • financial leasing;

  • venture or risk capital;

  • payment services as defined in the Second Schedule;

  • issuing and administering means of payment (e.g. travellers cheques, bankers’ drafts and similar instruments) in so far as this activity is not covered by point 4 above;

  • guarantees and commitments;

  • trading for own account or for account of customers

  • underwriting share issues and the participation in such issues;

  • money broking;

  • issuing of electronic money as defined in the Third Schedule.

A company shall be granted a Malta financial institution licence only if:

  • its own funds are equal to such amount established by the MFSA as appropriate for the activities to be undertaken by the applicant. Therefore the initial own funds of the applicant institution will be set on a case by case basis and will be commensurate to the business plan submitted by prospective applicants;

  • there are at least two individuals who will effectively direct the business of the Malta financial institution;

  • all qualifying shareholders, controllers and all persons who will effectively direct the business of the financial institution are suitable persons to ensure its prudent management;

  • the MFSA is satisfied that the financial institution has sound and prudent management and a clear organizational structure:

  • the MFSA is satisfied that there are no close links between that company and another person(s) which through any law, regulation, administrative provision or in any manner prevent the company from exercising effective supervision of that company.

Maltese financial services legislation provides for the opening of branches by licensed financial institutions. A financial institution operating within Malta financial services is required to inform the MFSA in writing before opening a new branch, agency or office in Malta.

Under Malta financial services regulations, this notification requirement ensures proper regulatory oversight prior to the establishment of any new operational presence.

Insurance Business

Are you considering offering insurance services in or from Malta? The Malta Financial Services Authority (MFSA) provides authorisations for a Malta insurance licence for:

  • a company whose head office is in Malta to carry on the business of insurance in or from Malta, or in or from a country outside Malta;

  • a company whose head office is in a country outside Malta to carry on the business of insurance in or from Malta.

Before granting an authorisation the MFSA must be satisfied that:

  • the company has made an application in writing. An application is to be determined within 6 months of receiving the required information but this period is reduced to 3 months where the authorisation sought is restricted to reinsurance or affiliated insurance;

  • the company’s own funds are at all times appropriate for the type of business to be carried on or being carried on by the company;

  • the company’s objects are limited to business of insurance and operations arising directly therefrom to the exclusion of other commercial business;

  • sufficient information is made available on persons having any proprietary, financial or other interest in, or in connection with, the company;

  • all qualifying shareholders, controllers, and all persons who will effectively direct the business of insurance are fit and proper to ensure the company’s sound and prudent management;

  • a scheme of operations has been submitted;

  • that the company discloses any close links that it may have with any other person.

Non-EU insurance companies seeking a Malta insurance licence ought to appoint a representative who must be a person resident in Malta or a company whose head office is in Malta. The company must itself have an individual representative resident in Malta. Moreover, such resident person must be authorised to act generally and to accept service of any documents on behalf of the company and must not be the approved auditor or a partner or an employee of the approved auditor of the company.

 

The required own funds of an insurance company must be unencumbered at all times, and depend on the pertinent class of insurance under a Malta insurance licence. The MFSA may also require a higher amount as it may deem appropriate. Moreover, companies authorised to carry on the business of insurance in Malta are to maintain at all times a minimum margin of solvency as well as a guarantee fund as prescribed by the pertinent regulations. An authorised company carrying on the business of insurance is also required to contribute to the Protection and Compensation Fund. The Fund is established for the payment of claims in respect of risks situated in Malta and of commitments where Malta is the country of the commitment remaining unpaid by reason of the insolvency of an authorised company; and for the payment of compensation to victims of road traffic accidents. Companies carrying on business of reinsurance or affiliated insurance are excluded from making a contribution to the Fund.

Investment Services

Are you looking to provide investment services?

Malta financial services legislation establishes the regulatory framework for investment services licences and Collective Investment Schemes Licences. Malta investment licence legislation transposes EU legislation in this area, including the Markets in Financial Instruments Directive (MiFID) and the UCITS Directive, as well as any related updates and legislative developments.

 

An Malta investment licence is required whether the investment service is being provided in Malta or overseas. If the investment service is provided in Malta to overseas residents, a Malta investment licence is required whatever kind of “legal person” (including an individual) is involved. If the investment service is being provided overseas, from outside Malta, a Malta investment licence is required if the service is being provided by a body corporate, unincorporated body or association formed, established or constituted under the laws of Malta.

A Malta licensable activity takes place when an investment service is offered in respect of an instrument. The term instrument covers a wide range of investments and financial products, including shares, bonds and other securities and foreign exchange dealings. The pertinent legislation lists the following services:

  • reception and transmission of orders in relation to one or more instruments;

  • execution of orders on behalf of other persons;

  • dealing on own account;

  • management of investments;

  • trustee, custodian or nominee services;

  • investment advice;

  • underwriting of instruments and, or placing of instruments on a firm commitment basis;

  • placing of instruments without a firm commitment basis;

  • operation of a multilateral trading facility.

When considering whether to grant or refuse a license, the MFSA is required to consider three criteria set out in the law:

  • the protection of investors and the general public;

  • the protection of the reputation of Malta taking into account Malta’s international commitments;

  • the promotion of competition and choice.

A Malta investment licence is issued only if the MFSA is satisfied that the applicant is a fit and proper person to provide the investment service concerned and that the applicant will comply with and observe the pertinent rules and regulations applicable to the licence holder. The concept of ‘fit and proper’ is a fundamental regulatory concept. This is a rigorous test which. requires senior staff and potential and existing licensees – both at licensing stage and on an ongoing basis thereafter – to demonstrate solvency, competence and integrity in all their dealings

There are four categories of Malta investment licence as follows:

Category 1A

  • Licence holders authorised to receive and transmit orders in relation to one or more instruments and/or provide investment advice and/or place instruments without a firm commitment basis but not to hold or control clients’ money or customers’ assets. (This Category does not include managers of Collective Investment Schemes.)

Category 1B

  • Licence holders authorised to receive and transmit orders, and/or provide investment advice in relation to one or more instruments and/or place instruments without a firm commitment basis solely for professional clients and/or eligible counterparties but not to hold or control clients’ money or customers’ assets. (This Category does not include managers of Collective Investment Schemes.)

Category 2

  • Licence holders authorised to provide any investment service and to hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis. 

Category 3

  • Licence holders authorised to provide any investment service and to hold and control clients’ money or customers’ assets.

Category 4

  • Licence holders authorised to act as trustees or custodians of collective investment schemes. It should be noted that every licence holder in possession of a Category 2 or Category 3 Malta investment licence must participate and contribute to the Investor Compensation Scheme.

The application process may be summarised in three phases namely:

1. the Preparatory Stage;

2. the Pre-Licensing Stage; and

3. the Post-Licensing/Pre-Commencement of Business Stage. 

The speed at which the Preparatory Stage is completed is reliant on the completeness of the documentation submitted and on the applicant’s efficiency. Stages two and three can be completed within six to twelve weeks.

At this stage, it is recommended that the promoters hold a preliminary meeting with the MFSA to outline their proposal as part of the Malta licensing process. This meeting should be held prior to the submission of an application for a licence within the Malta licensing process framework. Following this preliminary meeting, promoters usually submit a draft Licence Application Form, together with the pertinent supporting documentation. The Application form and all material submitted should be in English, or if in another language, should be accompanied by an English translation.

The draft application and supporting documentation are reviewed. Preliminary comments are provided to the Applicant who in turn is invited to revert with comments. The MFSA may ask for more information and may make such further enquiries as deemed necessary within the Malta licensing process. The fit and proper checks follow, comprising the follow-up of information which has been provided in the Application documents submitted. The fit and proper test ought to be satisfied at the outset and on a continuing basis. The three main criteria which are to be met to satisfy this test are integrity, competence and solvency.

Once the draft application and supporting documents have been reviewed and the draft licence conditions have been agreed to, the MFSA will issue its approval for the issue of a licence. The applicant will then be required to finalise any outstanding matters, such as company incorporation (or registration of partnership), submission of signed copies of the revised application form together with supporting documentation in their final format, together with any other issues raised during the Malta licensing process. The licence is issued once all pre-licensing issues are resolved.

The Applicant may also be required to satisfy a number of post-licensing matters prior to formal commencement of business.

Promethean, through its expertise and good standing with the MFSA can duly assist in all of the above stages.

Directive 2009/65/EC, or rather the UCITS IV directive, was approved by the European Parliament in January 2009 and adopted by the Council in June 2009. Investment funds authorised in accordance with the provisions of the UCITS IV directive may be distributed to investors across the EU after following a defined procedure for notifying the pertinent authorities. The UCITS framework has more recently been improved by the transposition of the UCITS IV directive, which is aimed at making the UCITS market increasingly efficient, particularly vis-à-vis the cross-border activities of fund management companies. The UCITS IV directive offers the investing public a wider choice of financial products at lower prices through further integration of the Internal Market. Moreover, it aims to enhance investor protection through better information and more effective supervision while preserving the competitiveness of the European funds industry by updating the regulatory framework of UCITS funds in order to reflect developments in the global financial market.

As a consequence, the UCITS IV directive has:

  • created an authentic EU passport for UCITS management companies;

  • improved investor information through the creation of the Key Investor Information Document;

  • facilitated the cross-border marketing of UCITS;

  • made possible the cross-border mergers of UCITS;

  • introduced a framework for master-feeder structures; and

  • strengthened the supervision of UCITS Funds and management companies

The provisions relating to the regulation of the UCITS management company passport were transposed in Malta investment services legislation outlining the Standard Licence Conditions applicable to UCITS management companies. The management company passport under the UCITS IV directive affords strategic opportunities for management companies in that it allows funds authorised in a member state to be managed by a management company which is established in another member state.

Maltese investment services legislation also caters for the attainment of the regulatory approval required for a Maltese management company to establish a branch or to provide services on a cross-border basis in another EU/EEA Member State, and for a European management company to establish a branch or to provide management services on a cross-border basis in Malta. Such rules define which regulatory authority has jurisdiction to take action in case of breaches of the relevant requirements by a management company which provides services on a cross-border basis or through the establishment of a branch in a member state other than its home member state.

The AIFMD directive was published in the Official Journal of the European Union on 1st July 2011. The transposition deadline for the AIFMD directive together with its implementing measures stands at 22nd July 2013. The rationale of the AIFMD directive is that of creating a comprehensive and effective regulatory and supervisory framework for Alternative Investment Fund Managers (AIFMs) in the European Union. The AIFMD directive introduces a harmonised regulatory and supervisory framework for AIFMs in the EU. For the purposes of the AIFMD directive, AIFs are defined as all funds that are at present not harmonised under the UCITS Directive.

The objectives of the AIFMD directive are to:

  • ensure that all AIFMs are subject to appropriate authorisation and registration requirements;

  • provide a framework for the enhanced monitoring of macro-prudential risks, e.g. through sharing of relevant data among supervisors;

  • improve risk management and organisational safeguards to mitigate micro-prudential risks;

  • enhance investor protection;

  • improve public accountability for AIFs holding controlling stakes in companies; and

  • develop the single market for AIFMs.

These regulations provide for the procedure pertinent to the attainment of regulatory approval for a Maltese AIFM to establish a branch or to provide services on a cross-border basis in another EU/EEA Member State and for a European AIFM to establish a branch or to provide management services on a cross-border basis in Malta.

The provision of online forex trading services is by and large provided in the Member State where the entity is established and is also made available to clients resident within the European Union further to the passporting of this service under the EU Markets in Financial Instruments Directive (MiFID), including where applicable a Malta forex trading licence framework. The MiFID is aimed at ensuring a harmonised regime for the authorisation and operation of investment firms within the EU. A service with respect to foreign exchange is licensable under Maltese law and is passportable under MiFID, if the service relates to contracts for difference, derivatives in relation to foreign exchange, and rolling spot forex under a Malta forex trading licence. Providing a service with respect to foreign exchange, which is acquired or held for investment purposes is also licensable under Maltese law; however, this is not considered a MiFID service and cannot therefore be passported under this EU Directive.

Online forex trading under a Malta forex trading licence is by and large provided in one of two forms, either by dealing on own account or by acting as a riskless principal (often as a ‘white label partner’). With respect to the latter, the entity would be involved in executing two matching trades (one with the client and one offsetting trade with another principal) entered at the same time and price, with the entity acting as counterparty to both transactions. This is considered as execution of orders on behalf of clients. In order for an entity to execute orders on behalf of clients under a Malta forex trading licence, a Category 2 investment services licence is required. On the other hand, an entity which would like to deal on its own account is required to have a Category 3 investment services licence.

The MFSA continues to classify Investment Services Licence Holders as Category 1A, 1B, 2, or 3 depending on the licensable services they are authorised to provide. Separately, under the EU Investment Firms Directive and Regulation (IFD/IFR), each licence holder is also classified into one of four prudential Classes, which determines its capital requirement. The applicable permanent minimum capital requirement is €750,000 for firms dealing on own account, underwriting, or operating an Organised Trading Facility; €150,000 for firms holding client money or assets while providing other investment services; and €75,000 for firms that do not hold client money or assets. Firms must also satisfy the Fixed Overheads Requirement and any applicable K-factor requirements under the IFR.

Malta has positioned itself as an important European gateway for Malta Islamic finance following the MFSA’s 2025 update to the Shariah-compliant investment fund framework. The revised guidance integrates Shariah principles directly into Malta’s existing fund structures including Alternative Investment Funds (“AIFs”), Professional Investor Funds (“PIFs”), and Notified AIFs (“NAIFs”) rather than creating a standalone Islamic finance regime. This provides Middle East and North Africa (“MENA”) and Gulf Cooperation Council (“GCC”) investors with a familiar European Union (“EU”) aligned regulatory environment while ensuring that Malta Islamic finance requirements are clearly embedded into the fund governance process.

Under the updated Malta Islamic finance framework, Shariah-compliant funds must conduct pre-investment and ongoing Shariah screening, maintain comprehensive monitoring systems, and undergo an annual Shariah audit. Each fund must also appoint a Shariah Advisory Board or qualified Shariah advisor to oversee adherence to Islamic principles, review investment policies, and issue the annual Shariah compliance report. Importantly, the role of the Shariah advisors is advisory in nature, with fund directors and licensed managers retaining responsibility for investment decisions and regulatory compliance.

Malta’s Malta Islamic finance regime accommodates a broad spectrum of Islamic investment strategies, including Shariah-screened equity funds, sukuk portfolios, Ijarah-based structures, commodity strategies, and Murabaha arrangements. For promoters seeking rapid deployment, the NAIF model allows funds to be launched within ten business days, while re-domiciliation rules permit existing offshore Islamic funds to migrate to Malta without disruption. This flexibility is particularly attractive for family offices and asset managers seeking EU access while maintaining Shariah alignment.

Complementing the regulatory framework are Malta’s wider advantages: tax-neutral fund vehicles, a strong double-tax treaty network, competitive operational costs, and targeted fiscal incentives under the Tax Treatment of Highly Skilled Individuals Rules, 2026 (Legal Notice 20 of 2026), which consolidated the former Senior Employees of Family Offices tax regime and offers a 15% flat rate for qualifying senior professionals relocating to Malta. With its Eurozone membership, English-speaking ecosystem, and proximity to the Middle East, Malta offers a strategically located and cost-efficient platform for Malta Islamic finance, Islamic wealth management, and MENA family office expansion into the EU.

Collective Investment Schemes

Are you interested in setting up an investment fund?

Malta offers a competitive and comprehensive legal framework for the establishment of various types of Malta investment funds within the European Union. You have several options for structuring your fund:

  • SICAV (investment company with variable share capital – i.e. open-ended fund);

  • investment company with fixed share capital (that is a closed-ended fund);

  • limited partnership;

  • incorporated cell company; or

  • unit trust;

  • contractual fund

A contractual fund within Malta investment funds may also set up a Special Investment Vehicle (SIV) for the purpose of investing and holding assets on behalf of the fund in accordance with the fund’s deed of constitution and offering document (prospectus). This SIV would take the form of a limited liability company set up under the laws of Malta.

 

Collective investment schemes can be licenced as UCITS schemes under Malta investment funds regulations. UCITS schemes are open-ended schemes. These schemes benefit from passporting and can hence be marketed in other EU or EEA member states. Thus UCITS schemes which fulfil the requirements prescribed by the pertinent legislation can, by virtue of the European passport, be freely marketed throughout the European Union.

 

Non-UCITS schemes are open-ended or closed-ended retail schemes formed in accordance with the laws of Malta investment funds regulation. Retail schemes that are intended to be marketed only in Malta are normally established as non-UCITS schemes. Another form of non-UCITS scheme is the Professional Investor Fund (PIFs). PIFs are regulated under a separate framework which is particularly suited for funds following alternative investment strategies and sold internationally on a private placement basis.

 

A CIS organised under Malta investment funds legislation as well as a CIS operating in or from Malta requires a licence. Certain exemptions from the requirement to obtain a CIS licence also exist in specific scenarios.

 

The MFSA may only grant a CIS licence if it is satisfied that the scheme will comply in all respects with the provisions of Malta financial services legislation and that its directors and officers are fit and proper persons to carry out the functions required of them in connection with the CIS. To this end the MFSA will look into the experience and track record of all parties who will be involved with the scheme. Such persons should primarily be of good standing and should likewise be competent. The “fit and proper” test is one which an applicant and a licence holder ought to satisfy on a continuous basis under Malta investment funds regulation. Each case is assessed on its own merits and on the basis of the relevant circumstances of the case.

  • Phase 1: Preparatory Phase

  • Phase 2: Pre-Licencing Phase

  • Phase 3: Post-Licencing/Pre-Commencement of Business

At this initial stage of the Malta fund licensing application process, it is recommended that the promoters hold a preliminary meeting with the MFSA to outline their proposal. Such meeting should be held in advance of submitting an application for a licence. It is fundamental that the applicant provides a comprehensive description of the proposed activity from the very beginning within the Malta fund licensing process. With regard to Overseas Based Non-UCITS Schemes, the applicant ought to provide full information on the manner in which it proposes to market the units of the scheme in Malta.

 

Following the preliminary discussions, the promoters should submit a draft licence application as well as the supporting documents. A non-refundable application fee is also due at this stage of Malta fund licensing. All material submitted should be in English, or if in another language, should be accompanied by an English translation.

 

The draft application forms and supporting documentation are reviewed and comments are provided to the applicant within 3 weeks from submission of the pertinent documents under the Malta fund licensing process. The applicant is invited to revert with his own comments. The MFSA may ask for more information and may make such further enquiries as it considers necessary. The fit and proper checks also begin at this stage. This entails following up all the information which has been provided in the application documents submitted.

Once the review of the application and supporting documentation has been completed and the draft licence conditions have been agreed, the MFSA will issue an “in principle” approval for the issue of a licence under Malta fund licensing rules. At this stage, the applicant will be required to finalise any outstanding matters. Submission of signed copies of the revised application form together with supporting documentation in their final format, and any other issues raised during the application process should be resolved. A licence will be issued as soon as all pre-licensing issues are resolved.

The applicant may be required to satisfy a number of post-licensing matters prior to formal commencement of business under Malta fund licensing rules.

Service Providers: Managers, Custodians, Administrators, Investment Adviser


Generally, service providers of a Maltese UCITS scheme and a Maltese Non-UCITS scheme are required to be based in Malta and regulated by the MFSA.

Service providers generally include, amongst others, a manager, a custodian, an administrator and an investment adviser. Service providers who benefit from EU Treaties are allowed to provide services to Malta-based schemes following notification under the applicable passporting legislation. Where permitted in terms of EU legislation, other foreign service providers, who may be accepted by the MFSA as service providers of Maltese schemes, should be established and regulated in a recognised jurisdiction.

Promethean, through its expertise and good standing with the MFSA, can duly assist in all of the above stages.

A Maltese UCITS scheme, a Maltese Non-UCITS scheme or an overseas based Non-UCITS scheme may apply for admissibility to listing with the Malta Listing Authority under Malta fund listing requirements. A European UCITS Scheme may also apply for admissibility to listing with the Malta Listing Authority under Malta fund listing rules.

A formal application for authorisation for admissibility to listing can be made to the Malta Listing Authority concurrently with the submission to the MFSA of an application for a licence. In such a scenario, the Listing Authority would consider such application for authorisation for admissibility to Malta fund listing provided that, in the case of a CIS established under Maltese legislation or established in a recognised jurisdiction and which is to be marketed in Malta, the Listing Authority shall only issue the authorisation for admissibility to listing after the licence pertinent to the CIS has been duly issued by the MFSA. At the outset, the MFSA will request permission from the applicant to copy all communication concerning licensing to the Listing Authority so that when the licensing procedure has been completed, the Listing Authority will be aware of relevant information, thus avoiding duplication of work.

Opting for Malta fund listing translates into enhancing the international profile of the listed security. Secondly, certain institutional investors may only acquire units in a CIS that is listed. Consequently, listing on the Stock Exchange increases the marketability of the CIS.

Promethean, through its expertise and good standing with the MFSA, can duly assist in an application for listing, together with the preparation of the pertinent documentation attributable to such a process.

Professional Investor Funds (“PIFs”) and Notified PIFs (“NPIFs”)

Are you considering establishing a regulated investment platform for sophisticated investors, family offices or private capital strategies?

Malta offers a flexible and internationally recognised PIF environment, supported by a mature regulatory ecosystem, experienced service providers and strong cross-border recognition within the European Union. The Malta NPIF framework has been developed to provide a faster and more proportionate route to market for eligible Alternative Investment Fund Managers (“AIFMs”).

 

In recent years, the Malta NPIF framework has been enhanced through the introduction of the NPIF, providing a streamlined notification-based route to establish funds efficiently.

Funds

An NPIF operates under a notification-based regulatory model rather than a full licensing process. Eligible AIFMs may notify the Malta Financial Services Authority (“MFSA”) and establish a fund within approximately ten business days, subject to meeting prescribed regulatory criteria under the Malta NPIF framework.

 

This streamlined approach significantly reduces regulatory lead time while maintaining governance standards, transparency and operational discipline appropriate for professional and qualifying investors.

 

NPIFs are particularly suitable for proprietary investment strategies, family office platforms, emerging asset managers and private capital structures seeking a credible European base without unnecessary regulatory friction within the Malta NPIF framework.

NPIFs may be established using a variety of legal forms under Maltese law, including:

  • Investment companies (SICAVs or INVCOs)

  • Limited partnerships

  • Unit trusts and common contractual funds

  • Umbrella structures with segregated sub-funds

This flexibility allows promoters to efficiently segregate strategies, asset classes and investor mandates within a single platform.

NPIFs are not subject to restrictive investment limitations applicable to retail fund products. Subject to appropriate disclosure and risk governance, strategies may include:

  • Listed securities and structured products

  • Private equity and venture capital

  • Real estate and private credit

  • Digital assets and technology strategies

  • Commodities and alternative investments

Malta offers a competitive operating environment with proportionate setup and ongoing costs supported by a well-developed professional services ecosystem.

 

Investment funds benefit from Malta’s tax neutrality principles and access to an extensive double taxation treaty network. Where appropriate, advance tax rulings may be obtained to provide certainty for cross-border structuring and asset flows.

  • Family offices and private wealth platforms

  • Emerging and boutique asset managers

  • Co-investment vehicles and club structures

  • Multi-strategy private capital platforms

  • Proprietary investment vehicles

Promethean provides end-to-end advisory support for the establishment and ongoing operation of PIF and NPIF structures, including:

  • Regulatory structuring and feasibility assessment

  • Coordination with fund administrators, legal advisors and auditors

  • MFSA notification and documentation management

  • Governance, substance and operational setup

  • Ongoing compliance and regulatory support

Our integrated approach ensures efficient execution, regulatory clarity and long-term operational stability.

Looking to Invest in Funds? Let's Explore the Possibilities

A Collective Investment Scheme (“CIS”) under Maltese law, as is likewise the case under many foreign laws, generally comprises a vehicle that affords potential investors the opportunity to entrust their funds to a structure that performs activities of a collective investment nature. As previously discussed, the advantages pertinent to investing in a CIS include risk spreading and the prospect of partaking in investment opportunities that would otherwise have not been accessible to a sole investor. By and large, a CIS established under Maltese law would be set up as a separate legal entity in its own right, operating within the remit of the Investment Services Act (“ISA”). A CIS may be set up in an array of legal forms, broadly categorized as a corporate fund such as a SICAV or an unincorporated fund such as a mutual fund.

 

For Malta CIS taxation purposes, a CIS refers to any scheme or arrangement which is licensed under the Investment Services Act. The definition of a CIS also includes undertakings for collective investment in transferable securities (“UCITS”). A number of rules in Malta CIS taxation legislation provide for a special tax regime pertaining to CISs which afford significant tax mitigation opportunities.

By and large, CISs are set up as companies and should, at least from a theoretical standpoint, constitute fiscally opaque entities. Consequently, CISs should be treated as treaty subjects within the purport of general principles of international tax law under Malta CIS taxation rules.

 

Income of a CIS, with the exception of income arising from immovable property situated in Malta and specific investment income, shall be exempt from tax under Malta CIS taxation provisions.

 

The tax regime pertinent to CISs is based on the categorisation of funds into prescribed and non-prescribed funds. In the scenario that a CIS is made up of several sub-funds, the above distinction in fund classification ought to apply to each sub-fund within the CIS for Malta CIS taxation purposes.

 

A prescribed fund comprises a fund of a scheme based in Malta that has made an express declaration to the Commissioner for Revenue that the value of its assets held in Malta, as of a particular date, represents at least 85% of the fund’s total asset value. All other remaining funds constitute non-prescribed funds.

 

Non-prescribed funds include all funds held in a scheme based overseas and funds of a Malta-based scheme that do not meet the necessary requirements to constitute prescribed funds under Malta CIS taxation rules.

Income which accrues to a prescribed fund, falling within the remit of specific categories of investment income, falls outside the scope of the tax exemption enshrined in Malta tax legislation and is consequently subject to tax at source. The rate of withholding tax is dependent on the prescribed fund’s type of income earned. A payer is obliged to withhold tax at the rate of 15% with regard to local bank interest and 10% in the event of any other form of investment income under Malta CIS taxation rules. Such withholding taxes ought to be deducted when payment of investment income is made to a CIS. With regard to income derived from immovable property situated in Malta, the fund is subject to the normal corporate rate of tax. However, any other form of income or gain not constituting investment income and received by a CIS does not give rise to any Maltese tax implications.

 

While a greater part of the income accruing to non-prescribed funds is tax-exempt, the income pertinent to a prescribed fund does not enjoy such a privileged status under Malta CIS taxation rules. Prescribed funds established in corporate form are taxable at the standard rate of 35%. Nonetheless, other tax rates may be applicable depending on the type of income arising at fund level.

Non-prescribed funds benefit from a tax exemption on income and gains received, including investment income, under Malta CIS taxation rules. An exception to such exemption exists with regard to income derived from immovable property situated in Malta.

Reclassification may give rise to tax implications when an eventual disposal of fund units takes place. A disposal is deemed to occur on the date of reclassification. This is crucial for the calculation of the capital gain or loss on the transfer of the units held in the reclassified fund. The disposal value comprises the last quoted price prior to the reclassification date of the fund. Tax on any capital gain will only fall due upon disposal of the units.

Units which are disposed of in a fund reclassified from a prescribed to a non-prescribed fund are, for tax purposes, treated as units in a non-prescribed fund for the entire holding period under Malta CIS taxation rules. This holds irrespective of the fact that part or all gains may have arisen during the period when the fund was classified as a prescribed fund. Consequently, tax is due on any gains accruing during the entire period. Relief is not afforded for those gains which accrued during the period when the fund was held as a prescribed fund. Furthermore, the fund is obliged to notify the payers of investment income upon reclassification in order to establish whether tax ought to be deducted from the investment income payable to the fund or otherwise.

Digital Operational Resilience Act (“DORA”) Compliance Advisory

DORA Compliance Malta & EU | Digital Operational Resilience Act Advisory Services

The DORA compliance EU framework establishes a harmonised EU regulatory framework for ICT risk management, cyber resilience, ICT incident reporting, and third-party ICT risk oversight, operational resilience and third-party oversight within the financial sector. From 17 January 2025, financial entities and certain ICT service providers must demonstrate full compliance with DORA compliance EU requirements.

DORA compliance EU is not simply an ICT regulation. It is a governance, risk management and supervisory framework requiring:

  • Board accountability;

  • Structured ICT risk documentation;

  • Incident classification and reporting;

  • Digital resilience testing;

  • Effective third-party risk oversight.

Promethean provides DORA compliance EU advisory in Malta and across the European Union, supporting financial entities, fintech firms, Crypto-Asset Service Providers (“CASPs”), and ICT providers in achieving proportionate, sustainable and operationally sound compliance.

Our DORA Advisory Services

We conduct a comprehensive assessment of your existing ICT risk framework against DORA compliance EU requirements and prepare a structured implementation plan aligned with your entity type, size and risk profile.

Deliverables include:

  • Regulatory gap assessment report

  • Prioritised remediation plan

  • Governance mapping

  • Board reporting framework

DORA compliance EU requires financial entities to establish and maintain a comprehensive ICT risk management framework.

We assist with:

  • Governance and oversight structuring

  • Risk identification and classification methodologies

  • Probability and impact assessment matrices

  • Control mapping and documentation

  • Risk register development

Our approach ensures clear traceability, defensibility and supervisory readiness.

DORA compliance EU introduces strict requirements for incident classification and reporting to competent authorities.

We support:

  • Incident severity classification frameworks

  • Escalation and internal reporting procedures

  • Regulatory notification templates

  • Incident registers and documentation logs

This ensures timely reporting and structured supervisory engagement.

Third-party oversight is a core pillar of DORA compliance EU.

We assist with:

  • Identification of critical and important functions

  • ICT service provider risk assessments

  • Contractual clause review and alignment

  • Outsourcing governance frameworks

  • Structuring and validating the Register of Information

Our methodology ensures completeness, consistency and export-ready documentation aligned with regulatory expectations.

DORA compliance EU requires financial entities to test their operational resilience on a regular basis.

We support:

  • Testing strategy design

  • Scenario analysis frameworks

  • Threat-led penetration testing preparation (where applicable)

  • Remediation tracking and governance reporting

We provide tailored DORA documentation aligned with EU regulatory standards, including:

  • ICT Risk Management Policy

  • Incident Management Policy

  • Outsourcing & Third-Party Risk Policy

  • Business Continuity & Operational Resilience documentation

  • Governance registers and tracking logs

All documentation is proportionate, scalable and designed to withstand supervisory scrutiny.

 

Why Promethean

 

DORA compliance EU implementation presents practical challenges, including:

  • Structuring and maintaining the Register of Information

  • Integrating ICT, compliance and operational data

  • Producing regulator-ready reporting

  • Automating governance workflows

  • Ensuring ongoing monitoring and board oversight

Promethean combines regulatory expertise with practical implementation experience across financial services, delivering commercially realistic and defensible solutions.

 

Our approach ensures:

  • Clear accountability and governance lines

  • Audit-ready documentation

  • Sustainable compliance processes

DORA Compliance Advisory for MFSA-Licensed Firms in Malta and Regulated Financial Entities Across the EU


Promethean supports licensed entities and regulated firms across Malta and the EU in navigating DORA compliance EU implementation efficiently and proportionately.


Whether you require a structured gap analysis, full implementation support or targeted third-party risk advisory, we provide practical solutions aligned with supervisory expectations.


DORA compliance EU should strengthen your operational resilience, not overwhelm your organisation.


Promethean supports you from initial readiness assessment to full regulatory implementation.


Contact us to discuss your DORA compliance EU requirements.

Let Us Help You

Get in touch to find out more about ways Promethean can help with your specific needs.
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