Malta offers a competitive and comprehensive legal framework for the establishment of various types of investment funds within the EU. To this end a fund may be set up as a:

• 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 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 Undertakings for Collective Investment in Transferable Securities Directive Schemes ("UCITS"). 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 EU.

Non-UCITS schemes are open-ended or closed-ended retail schemes formed in accordance with the laws of Malta. 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 Collective Investment Scheme ("CIS") on the basis of the relevant circumstances of the case.

Listing

A Maltese CIS scheme may apply for admissibility to listing with the Malta Listing Authority. A European CIS Scheme may also apply for admissibility to listing with the Malta Listing Authority.

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 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 under after the license 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 Malta Listing Authority so that when the licensing procedure has been completed, the Malta Listing Authority will be aware of relevant information, thus avoiding duplication of work.

Opting for listing, translates in 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.