alter domus malta newsletter · accounting, consolidation, tax and legal compliance and debt...

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Alter Domus

MALTA NEWSLETTEROctober 2017

2 ALTER DOMUS MALTA NEWSLETTER

Alter Domus

MALTA

Alter Domus is a fully integrated Fund and Corporate services provider, dedicated to international private equity & infrastructure houses, real estate firms, multinationals, private clients and private debt managers. Our vertically integrated approach offers tailor-made administration solutions across the entire value chain of investment structures, from fund level down to local Special Purpose Vehicles.

Disclaimer: Please note that this Update is not intended as a complete study on all applicable legislation nor has it been written with a view to providing legal advice on any matter. Edited October 2017

Founded in Luxembourg in 2003, Alter Domus has continually expanded its global service offer and today counts 32 offices and desks across five continents. This international network enables clients to benefit globally from the expertise of more than 1,150 experienced professionals active in fund administration, corporate secretarial, accounting, consolidation, tax and legal compliance and debt administration services.

We are proud to serve 9 of the 10 largest private equity houses, 6 of the 10 largest real estate firms and 5 of the 10 largest private debt managers in the world.

Alter Domus Malta was established in 2010 and has over 100 employees, 200 clients and 450 structures under administration.

3ALTER DOMUS MALTA NEWSLETTER

MALTA UPDATE

WORLD ECONOMIC FORUM CONFIRMS MALTA AMONGST TOP FINANCIAL JURISDICTIONS .....................................................................04

CONSULTATION ON THE NAIF REGIME .............................................04

MALTA – UK BUSINESS PROMOTION TASKFORCE SET UP .......04

CONSULTATION ON THE STRENGTHENING OF THE MALTA FINANCIAL SERVICES AUTHORITY ..................................................... 05

GOVERNMENT ANNOUNCES TASKFORCE ADVISING ON NATIONAL BLOCKCHAIN STRATEGY .................................................. 05

ALTER DOMUS UPDATE

OPENING OF REPRESENTATIVE OFFICE IN GENEVA ................... 05

LAUNCH OF MIDDLE OFFICE SERVICES ............................................06

GENERAL TOPICS

LOCAL BUSINESS UPDATE .......................................................................06

UPDATE ON OUR PEOPLE .........................................................................06

ALTER DOMUS IN THE MEDIA

PEOPLE CENTRED GROWTH ................................................................... 07

A CATALYST FOR THE COUNTRY .......................................................... 07

CONTACT ....................................................................................................08

7,000STRUCTURES UNDERADMINISTRATION

1,150EMPLOYEESWORLDWIDE

160bnUSD ASSETS UNDERADMINISTRATION

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Alter Domus

MALTA


Alter Domus

MALTA

MALTA UPDATE

WORLD ECONOMIC FORUM CONFIRMS MALTA AMONGST TOP FINANCIAL JURISDICTIONS

The Global Competitiveness Report 2017-2018, published annually by the World Economic Forum (WEF), has once again placed Malta amongst the top jurisdictions in terms of provision of the financial services. Malta performed remarkably well in key areas such as soundness of banks, strength of auditing and reporting standards, with top 20 classifications.

Overall, in terms of competitiveness Malta now ranks 37th out of 137 countries, an improvement on the 40th place attained in the previous edition. This publication assesses each country on 12 main pillars. Malta excelled particularly well in the areas of higher education and training (30th), labour market efficiency (29th), business sophistication (31st), and innovation (38th).

The WEF’s report provides a detailed overview of the competitiveness performance of 137 economies, and provides a highly detailed analysis of their economic, financial and social performance. It contains a detailed summary for each of the economies included in the study, as well as an extensive section of data tables with global rankings covering over 100 indicators.

In the introduction to the report, the WEF notes that the “Global Competitiveness Report 2017–2018 comes out at a time when the global economy has started to show signs of recovery and yet policymakers and business leaders are concerned about the prospects for future economic growth. Governments, businesses, and individuals are experiencing high levels of uncertainty as technology and geopolitical forces reshape the economic and political order that has underpinned international relations and economic policy for the past 25 years. At the same time, the perception that current economic approaches do not serve people and societies well enough is gaining ground, prompting calls for new models of human-centric economic progress.”

CONSULTATION ON THE NAIF REGIME

The Malta Financial Services Authority (MFSA) has issued a consultation document on proposed amendments to the Notified Alternative Investment Fund (NAIF) Regime and requested feedback from interested parties on certain proposed updates to the said regime. One key proposed

change relates to the possible extension of the regime to cover Alternative Investment Funds (‘AIFs’) investing in immovable property or infrastructure. These type of funds are currently excluded from the scope of the NAIF framework. The MFSA’s current Property Funds Policy would, in this regard, no longer apply for AIFs but is proposed to continue to apply solely and exclusively to Professional Investor Funds. The MFSA is also seeking feedback on the possibility of extending the NAIF framework also for funds investing in non-financial assets.

Some other updates to the specific rules are also being proposed by the MFSA, namely to:

• Require relevant disclosure in case of non-compliance with the Corporate Governance Manual for Directors of Investment Companies and Collective Investment Schemes;

• Require the submission by a Maltese AIFM of the updated Terms of Reference and Risk Management Policy and any relevant updates to the Valuation Policy and Procedures;

• Clarify to whom the money laundering reporting function may be delegated;

• Clarify that changes to the prospectus shall not become effective until they are noted by the MFSA.

The MFSA has also indicated that it is reviewing the Con-tinuation of Companies Regulations, to possibly provide for the re-domiciliation and continuation of schemes into Malta as a NAIF, as well as the Investment Services Act (Prospectus of Collective Investment Schemes) Regula-tions and the Investment Services Act (Performance Fees) Regulations.

MALTA – UK BUSINESS PROMOTION TASKFORCE SET UP

The Prime Minister of Malta has appointed Joseph Zammit Tabona to chair the newly set-up Malta-UK Business Promotion taskforce whose main responsibility is business promotion of Malta within the UK.

This task force is being set up to implement a plan of action between now and end of 2019 to promote business, including industrial, economical and financial activities to Malta in collaboration with the UK. Malta will position itself as a business destination for UK-based companies which want to set-up a base in a European Union Member State following Brexit.


Alter Domus

MALTA

CONSULTATION ON THE STRENGTHENING OF THE MALTA FINANCIAL SERVICES AUTHORITY

The Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri announced that the Government has published a consultation document for the strengthening of the MFSA aimed at taking the financial services sector to a new level.

Parliamentary Secretary Silvio Schembri explained that in such a dynamic financial services environment, time was ripe for the MFSA to step up the game through a pragmatic risk based approach rather than a descriptive one, fostering more efficient processes and a more conductive environment for innovation. He emphasised that the public consultation was meant to demonstrate that the authority is reactive enough to address situations where regulations lag the developments of new products in the market. Parliamentary Secretary Silvio Schembri said that a strengthened MFSA should be well set to harness the industry in the design of new products like Fintech, Blockchain and other niches to tap. He also explained that the MFSA needed to also be vigilant to ensure that new niches do not endanger the long-term stability of the sector and Malta’s long standing high reputation.

The public consultation was open till the 15th of September so now the government and the MFSA are in the process of incorporating all the feedback gathered to come up with concrete proposals on how the authority should be strengthened.

GOVERNMENT ANNOUNCES TASKFORCE ADVISING ON NATIONAL BLOCKCHAIN STRATEGY

The Government is announcing a Blockchain Taskforce entrusted with reviewing the proposals made to it and to make its recommendations for a clear roadmap to be taken by the Government to implement its National Blockchain Strategy, aimed at materialising the opportunities of distributed ledger technology.

The Blockchain Taskforce will be chaired by Vincent Muscat, Permanent Secretary for the Parliamentary Secretariat, assisted by members Steve Tendon (Blockchain Expert), Dr Ian Gauci (Legal Expert), Joseph Cuschieri (MGA Executive Chairman), Loui Mercieca (Blockchain Expert), Wayne Grixti (MITA Enterprise Architect), Carlo Stivala (Finance Expert), and Mario Borg (Economist).

The Parliamentary Secretariat for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister has, over the past few months, consulted with various stakeholders interested in blockchain technology. After the Cabinet of Ministers approved a National Blockchain Strategy back in April, the Secretariat has spearheaded the process for this to take off through a call for proposals from the big seven financial services advisory companies.

Apart from exploiting the opportunities that blockchain technology offers for added efficiency in public sector processes and services, the Government is ambitiously looking into the setting up of a new regulatory function with the primary objective of harnessing the technology with a legal operational framework, serving as a bold initiative leading to the formation of an ideal ecosystem for those willing to invest in blockchain technology.

The Government notes that interest from local and international private investors has been significant and it will remain open for the discussion of innovative ideas rendering this disruptive technology into a catalyst for the further growth of Malta’s digital economy.

The interest shown by the European Commission’s DG Connect to set up a Blockchain Observatory Forum where opinions can be generated on the potential of this disruptive technology, whilst engaging stakeholders on DLT EU standardisation, is being received positively within Malta’s ambition to govern new policy in blockchain that will not stifle innovation but create confidence in the technology.

ALTER DOMUS UPDATE

OPENING OF REPRESENTATIVE OFFICE IN GENEVA

Alter Domus is very pleased to inform its clients that the company now has set-up an office in Geneva, Switzerland. The decision to set-up such an office and to have a real physical presence in Geneva was simply based on the premise of getting closer to where our clients and our potential clients need us to be.

In addition, on the strength of the positive response and feedback that we received after hosting a seminar in Geneva in June of this year, we decided that we needed a place to welcome and meet with our clients, prospects and business partners.


Alter Domus

MALTA

For the time being, there will be no operations being run from the Geneva Office, but it will serve as a location for meeting to discuss current and future business with clients, prospects and business partners. The address of the Geneva office and the direct line can be viewed below:

1 Rue de la Cité 1204 Genève. +41 022 561 84 11

LAUNCH OF MIDDLE OFFICE SERVICES

Alter Domus has further enhanced its services offering by announcing that Middle Office Services can now be provided to asset managers who are faced with increasing operating complexities and costs, stringent regulatory requirements, and talent constraints.

As our clients seek more analysis and information for both themselves and third parties we have been helping our clients respond to challenges in their middle office.

Alter Domus has a long history of working with private equity and real estate structures. Over the last ten years, we have worked with many of the foremost private equity houses and real estate firms in the world. Our vertically integrated approach allows us to provide a comprehensive package of Middle Office services from Investors, the Managing Partners’ investment structures level to Funds, down to individual assets.

The Middle Office Services include:

• Carried Interest/ Performance Fee/ Partners Co-Investment –“Incentive Schemes”

• Transaction Support Services• Treasury Management at Fund Level• Investor Relations

GENERAL TOPICS

LOCAL BUSINESS UPDATEZEST EVENTAlter Domus has supported the Malta Communications Authority (MCA) in this year’s ZEST Event held on the 19th and 20 September at the Radisson Golden Sands. ZEST is an event organised for the start-up community in the Mediterranean and surrounding regions and it provided a great platform for networking and showcasing disruptive tech innovations.

This event was organised for the third consecutive year and this year it has built further on the success of the previous editions with over 400 participants from various different countries around the world. The audience was a mix of successful and up-and-coming entrepreneurs together with young entrepreneurs making their first steps in the start-up world.

Chris Casapinta, Country Executive Malta, participated in a panel discussion that tackled the topic “Who are you? Can we trust you?” together with Kenneth Farrugia (Finance Malta) and Nathalie Smolenski (Learning Machine). The panel was moderated by Abdalla Kablan (amico.ai)

ASSET MANAGEMENT FORUM Alter Domus Malta in collaboration with Deloitte Malta and Ganado Advocates, will be organising an Asset Management Forum for the third consecutive year at the Hilton Malta on the 2nd November. The Aim of the forum is to give industry players the opportunity to explore legal and regulatory developments affecting the operations of fund managers. A number of practical issues will be discussed, including valuation of assets, compliance with reporting requirements and the supervision of asset managers, and other matters which are at the core of the operations of fund managers.

The Forum will include panel discussions to enable the attendees to actively participate in the discussion and at the same time have the opportunity to share any concerns being currently faced by asset managers in the current regulatory environment. More than 100 participants are expected to attend this informative forum.

UPDATE ON OUR PEOPLESTRENGTHENING THE SENIOR MANAGEMENT TEAMIn October, Przemyslaw Koger (PK), will be moving as a Director to Alter Domus Malta. Przemyslaw joined Alter Domus in November 2013 and his most recent role was Head of Depositary and Corporate Services at the London office. He has over 10 years’ experience in financial services and is an FCA authorised person. He also sits on the boards of asset holding and other companies for a range of Private Equity and Real Estate clients. PK qualified as a chartered accountant with PwC and has a Master’s Degree from the London School of Economics.

This September, Ivan Darmanin joined Alter Domus Malta as a Senior Manager within the Corporate Services Department. Ivan has been working in the IT and Gaming Industries for the last 12 years. He is a qualified accountant and also holds a Diploma in Taxation.


Alter Domus

MALTA

ALTER DOMUS IN THE MEDIA

PEOPLE CENTRED GROWTHAmanda Cini, HR Senior Manager in Malta, penned an article on how people are the reason why Alter Domus Malta has grown to the company that it is today. In this article published on the front page of the Classified Section in the Sunday Times of Malta, Amanda explains how Alter Domus Malta is managing to overcome the local challenges of recruitment in the financial services industry, where demand has exceeded supply. She goes on to explain that besides recruitment, employee retention is also crucial and how this can be achieved through employee engagement.

A CATALYST FOR THE COUNTRYChris Casapinta, Country Executive Malta, was interviewed by a journalist on the financial services sector in Malta and on what further needs to be done to strengthen this sector further and make the local offering more competitive. In this interview, Chris also explained how Alter Domus acts as an ambassador for Malta by attracting businesses, so much so that Alter Domus Malta is the second largest office of the group. He has also forecasted that our business will continue growing at a solid pace in the years to come. The interview was published on a supplement that was distributed together with the Sunday Times of Malta.

INVOLVEMENT WITH IFSP AND MEADomenic Azzopardi, Senior Manager in our Funds services team, was interviewed by the Malta Employer’s Association (MEA) on the role of the Financial Services Industry in Malta. In the interview Domenic’s background and experience in the industry were also discussed. The interview will be broadcast on the local TV station, TVM 2, on the third week of October.

DONATION TO PUTTINU CARESAs part of our Corporate Social Responsibility Programme, a donation will be given in the beginning of October to Puttinu Cares Foundation, a local Cancer support group that offers a holistic approach of care for families with children suffering from cancer.

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OFFICEAlter Domus (Services) Malta LimitedVision Exchange Building Territorials Street Mriehel BKR 3000 Malta

T + 356 22 05 1000

[email protected]

www.alterDomus.com

WE’RE WHERE YOU NEED US.

2013, 2014, 2015 & 2016

CHRIS CASAPINTACountry Executive Malta

+356 22 05 10 [email protected]

Alter Domus (Services) Malta Limited Registered to act as a Company Service Provider by the MFSA. Alter Domus Fund Services (Malta) Limited is recognised by the MFSA in terms of Article 9A(1) of the Investment Services Act (the "Act") and has been granted a Category 4B licence in terms of Article 6 of the Act by the MFSA.

MAIN CONTACT

To keep in touch with further updates: www.alterDomus.com

You are invited to discover the following Malta brochures available on our website:

• Malta NAIF• Malta Maritime Industry• Malta Licensed Investment Services Entities

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