Bespoke requirements targeting Investment Based Crowdfunding in Malta

Authors: James Debono, Paul Falzon
Published on August 1, 2018
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Practices: Fintech & Blockchain
Crowdfunding, which refers to an open call to the public to raise capital targeted for a specific project, is developing rather rapidly across the globe. It is augmenting economic growth through new and increasing flows of credit to SMEs. This cost-efficient, highly accessible form of finance is enabling investors to diversify their portfolio as well as providing them a low-cost alternative for channeling savings to the real economy. In light of the EUR 4.2 billion (circa) raised through crowdfunding platforms in the EU in 2015, it comes to no surprise that one of the main objectives set forth in the Capital Markets Union Action Plan is to strengthen the different sources of alternative finance, including crowdfunding.

Private trustee companies: an alternative to foundations

Authors: Anthony Cremona
Published on July 10, 2018
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Practices: Trusts & Foundations
In 2014, Malta introduced Private Trust Company provisions into its trusts legislation through the introduction of the concept of a trustee acting for a family trust, as the corporate equivalent of the private individual trustee. In this way, the Maltese legislator created an alternative to the more traditional and widespread professional trustee/administrator or individual private trustee role. The trustee of a family trust or the ‘Private Trust Company’ is not required to undergo a full authorization process with the Malta Financial Services Authority (MFSA). If all conditions are satisfied, a Private Trust Company is merely required to apply for registration with the MFSA, which gives it a huge regulatory advantage over professional trustees or administrators other- wise requiring full MFSA authorization.