As a UCITS Management Company, Framont is authorised to manage undertakings for collective investment in transferable securities (“UCITS”). As an Alternative Investment Fund Manager, Framont is authorised to provide management services to alternative investment funds (“AIFs”).
Framont is able to support promoters in the establishment of sub-funds, whether through a UCITS, AIF or NAIFs, taking into account the intended investment objective, policies and restrictions.
Through our experience we can assist you on a number of fronts, depending on your needs. We can provide you with a wide range of services including: outsourcing of certain services, structuring, coordination of fund launches, assistance in investment processing, investor relations, investment management and distribution services.
We can also offer our clients a one stop shop service in relation to the other fund services and/or corporate services through our trusted collaborators.
When setting up an investment fund in Malta the fund might benefit from some or all of the following advantages:
- Full segregation of your investment
- Use of reliable banks for your deposits
- Ad hoc investment strategy and targets
- Full disclosure of processes and costs
- Applicability of a legislative framework which is flexible and market driven
- Exposure to regulated financial products
- Certainty of receiving reports and other relevant computations from our team of professionals
- Possibility to invest in financial products
- Fundrasing made easier through a European passport
- Minimal fiscal impact for non-resident investors***
Malta offers a competitive domicile for funds and their fund management operations:
- cost effective set-up;
- European regulation applies placing investors on the same level playing field and granting them European recognised rights;
- it has highly qualified professionals working in the funds industry;
- it offers a more pro-active authorisation process handled by the Maltese financial services regulator: the Malta Financial Services Authority;
- offers tax effective solutions for the investor***
- exemption from income tax and capital gains tax at both the fund level and at a non-resident investor level as long as more than 85% of the value of its assets is situated outside Malta;
- investment income received by the Fund is not subject to any withholding tax;
- no withholding tax is due on dividends paid out to non-residents;
- no tax is payable by non-resident investors when they dispose of their investment;
- no stamp duty charged on share issues or transfers
- no tax on the net asset value of the scheme
*** Warning: Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The levels and bases of taxation are dependent on individual circumstances and subject to change and therefore it is highly recommended that you consult a professional tax advisor.
Framont and the Funds Industry
Framont can offer its assistance with the setting up of an investment fund solely for the promoter or for a sub-fund which will form part of one of the following umbrella SICAVs, depending on the type of sub-fund which the promoter intends to set up:
- Lane Bridge UCITS SICAV plc, the umbrella SICAV for any undertakings for the collective investment of transferable securities (“UCITS”) sub-funds;
- Lane Bridge SICAV plc, the umbrella SICAV for alternative investment fund (“AIF”) sub-funds; and
- Global Series SICAV plc, the umbrella fund for any notified alternative investment fund (“NAIF”) sub-funds.
Notified Investment Alternative Funds (NAIF)
Main Features for NAIF Sub-funds
- Main Aim: access to the European market in the shortest timeframe possible (within 10 business days from submission of a complete application with the MFSA);
- May be open-ended, open-ended with closed ended features or closed-ended;
- may benefit from passporting rights in different EEA jurisdictions;
- not authorised by the MFSA;
- fast processing of the sub-fund/s application if a sub-fund is being established within an existing umbrella fund;
- this type of sub-fund may be marketed to professional but is also available (on a reverse solicitation basis) to qualifying investors.
The Notification Process
The AIFM must submit to the MFSA a notification pack (which includes inter alia confimation that due diligence has been undertaken on the directors and service providers to the NAIF (and the respective sub-fund)).
Should all documentation be up to the MFSA’s satisfaction, the MFSA will includethe AIF in the List of Notified AIFs within 10 working days from the date of filing of the duly completed notification pack.