Can you summarise Malta’s value proposition as a wealth management jurisdiction? 

As a well-established financial services centre, Malta adds significant value to international investors. Over the years, the jurisdiction has built a robust regulatory framework that offers sufficient flexibility to both professionals and investors, fostering innovation and supporting speed to market. Malta has also seen growth in firms offering different financial services across sectors including pensions, insurance, fund management, and wealth management. More recently, there has been a notable influx of electronic money institutions and payment service providers. This growth and diversification within the financial services industry is important as it results in the jurisdiction appealing to a broad range of investors with varying needs. 

Additionally, various fiscal incentives attract both high-net-worth individuals (HNWIs) and international financial services operators. The favourable fiscal environment has enticed a growing number of individuals and corporates to establish themselves here in Malta. Malta also offers an excellent lifestyle within a safe and secure environment. 

“Over the years Malta has developed various incentives to attract private individuals to reside in Malta. Most people who have decided to do so enjoy the lifestyle and tend to comment positively about life in Malta.”

Is there a particular profile of investor, fund or client that may find Malta particularly attractive? 

From my experience in the industry, I always strongly believed that Malta is especially attractive to individual investors and HNWIs. Over the years, the country has developed various incentives to attract private individuals. Most people who have decided to do so enjoy the lifestyle and tend to comment positively about life in Malta. 

The combination of an attractive regulatory framework, a positive business environment and a favourable lifestyle appeals to individuals who want to operate in a well-regulated environment that also offers flexibility for smaller businesses. In fact, in recent years Malta has witnessed a number of international family offices setting up shop here. 

Malta has developed novel structures like NAIFs, now also NPIFs, and cell companies. How important is this type of innovation in the financial services sector? 

The fast-paced and challenging financial services environment requires significant innovation in the way investment vehicles are structured. It is important that the local industry continues to innovate to meet investors’ expectations in a landscape that is evolving at various levels be it regulatory, fiscal and the markets in general. For a jurisdiction to remain relevant, ongoing innovation is essential.

Can you tell us a bit more about the way trusts and foundations operate in Malta? 

Trust and foundations are typically managed and administered by licensed and regulated Trustees. Although their organisational structure can be flexible, being managed by a regulated entity ensures a certain level of governance and risk management. The regulatory framework allows clients to set up a private trust company with a remit that is typically restricted for a family or a limited group of people. 

Clients may choose to use a trust or foundation for various reasons. Private clients would typically use these structures for estate and succession planning. Trusts are also used for other purposes, such as employee benefit trusts and security trusts