The UK’s asset management industry has been raked the highest in the European Union by the HM’s Treasury, who has reported that the UK manages an estimate of £8.1 trillion assets servicing clients worldwide. According to research, 12.5% of this accounts for European clients outside of the UK.
In the case of a no-deal Brexit, the asset management industry would lose their passporting rights to clients within the EU, whilst similarly, fund managements within the EU would lose passporting rights into the UK. With Brexit on the horizon and no deal yet secured, the threat of a hard Brexit is becoming ever more likely, and has pushed asset managers based within the UK to safeguard their market.
The Malta - British Connection
As a country with strong ties to Britain, Malta offers UK asset managers an EU jurisdiction which is not only a member of the Commonwealth, but a country which is also a leading financial hub within Europe. Ranking the first in GDP growth within the EU, Malta has seen an influx of foreign investment reach its shores as Malta is an ideal location for fund management within the EU. In fact, Malta is receiving a number of applications for UK businesses amidst Brexit uncertainty alone.
As a result of the British Influence for over 200 years, Malta offers investors an English-speaking jurisdiction with a Company’s Act based on that of the UK. As a financial centre, Malta provides businesses with an EU compliant jurisdiction with a flexible and approachable regulator, the Malta Financial Services Authority (MFSA). The financial industry has grown steadily throughout the past years, as the island offers a secure environment for asset management as well as one in which investors can continue to passport business across the EU.
Malta - Financial Investment Services
In addition, Malta allows for funds to be serviced from the National Professional Investor Fund (PIF), the Alternative Investment Funds (AIF) as well as the UCITS schemes. Notified AIF (NAIF) are also permitted. Maltese legislation also enables four types of licenses which allow for the transmission of instruments, the ability to offer advice or a service, the authority to hold assets or the ability to act as a trustee – depending on the license.
As a firm focusing on Financial & Corporate Services, Chetcuti Cauchi can help international clients by advising on which license best suits their needs, as well as other issues including fund administration, capital market listings and financial law, amongst other services. Coupled with a background in corporate services, the firm offers holistic services covering company formation and relocation.
Chetcuti Cauchi just held a webinar on how Malta can be a post Brexit solution for the Asset Management industry, if you would like to get more information, click here to register to watch the webinar.