Under Maltese law, collective investment schemes that qualify as Professional Investor Funds (“PIFs”) are subject to a significantly lighter and more flexible regime than retail funds. Hedge funds, funds of funds, private equity funds, and property funds, are typically set up as a PIF, in Malta. The Investment Services Rules for Professional Investor Funds, issued by the Malta Financial Services Authority (“MFSA”), cater for a regulatory framework that is both robust and adaptable, allowing managers and promoters to innovate and to develop new products to meet the changing needs of the market. The level of regulation depends on the type of investors targeted, as a distinction is made between PIFs promoted to Experienced Investors, PIFs promoted to Qualifying Investors and PIFs promoted to Extraordinary Investors.
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