Anabel, if you had to give an ‘elevator pitch’ to a fund manager, why should they consider Malta as their servicing hub?
Malta offers fund managers global reach, EU credibility, and cost effective expertise — all from a jurisdiction that has built a reputation as a pioneer in fund servicing.
Fund managers who choose Malta are in very good company. The assets under administration (AUA) of non-Maltese funds serviced here have been rising sharply. Malta administers funds that are domiciled in the Cayman Islands and the British Virgin Islands (BVI) as well as in other jurisdictions. Some United States-based fund managers see the time zone difference as an advantage — having reports ready by the time their day starts.
Others based in Europe appreciate being able to speak to an administrator, subject to the same level of regulation they are and in their own time zone while managing an offshore fund.
The background is that Malta is a politically and economically stable country that has been a member state of the EU since 2004. The regulator is well regarded, and rules are aligned with EU norms.
We have a skilled and multilingual workforce, many of whom have had training in other jurisdictions through secondments or network firms. Make no mistake, though, they speak English — which is an official language in this country.
What practical advantages set Malta apart from other fund servicing centres, and why are more Cayman and BVI funds being administered here?
Three points really stand out.
One is value for money. Malta has a lower cost base than larger centres, yet there is no compromise in the quality or sophistication of service that is provided.
Second, there is personalised, client-oriented service. Malta is a smaller jurisdiction, which means that fund managers are not treated as just another account.
Administrators here work closely with managers, offering flexibility, responsiveness, and tailored solutions that larger ‘factory style’ centres cannot always match.
The third is that we have the full ecosystem of service providers that are needed to operate a growing fund administration centre. We have a critical mass of administrators, auditors and legal/compliance professionals.
The ‘Big Four’ consultancies are here. They have set up teams specifically to deal with funds that are domiciled in offshore jurisdictions. In other words, fund managers have plenty of flexibility. If they are already using Maltese administrators for their offshore domiciled funds and want to launch new EU focused vehicles, the Maltese administrators can handle these.
Where do digital assets come into all this? How is Malta positioning itself in this space, and how is Fexserv contributing?
In relation to digital assets, Malta is — and is seen as — a trusted pioneer. Malta was one of the first jurisdictions in the EU to develop a regulatory framework for blockchain and virtual assets. In 2018, it was the first EU member state to allow regulated funds to invest in digital assets. That early start gave Maltese service providers a first mover advantage. Today, administrators here handle net asset value (NAV), compliance, anti-money laundering (AML) and know-your-customer (KYC), and reporting for digital asset funds. Malta even hosts the largest alternative investment fund (AIF) in Europe investing in this asset class. Fexserv is proud to be at the forefront. We developed dedicated processes and expertise to meet the complex needs of digital asset funds and continue to refine them as the sector evolves.
What are the criteria that one should consider in selecting a Maltese fund administrator?
In selecting a Maltese fund administrator, one should look for a combination of strengths.
First, the administrator should have experience in the relevant asset class — traditionally equities and fixed income, private equity or debt, digital assets etc. As noted, Maltese fund administrators collectively have proven expertise in all these areas.
Next, the administrator should clearly have strong operational infrastructure. It should demonstrably be able to provide NAV, reporting, Foreign Account Tax Compliance Act (FATCA), Common Reporting Standard (CRS) needs and investor services more generally. The administrator should be able to show a track record with funds that are domiciled both in Malta and elsewhere.
Finally, the administrator should have the ability to scale up its activities — as funds’ numbers and assets under management (AUM) expand. In selecting a Maltese fund administrator, ask this key question: does the organisation in question have the responsiveness and flexibility to be a long-term partner?
Finally, looking ahead, how do you see Malta’s funds industry developing over the next five years, and where will Fexserv sit within that journey?
The prospects for Malta’s further development as a funds jurisdiction are excellent. In troubled times, the country offers political and economic stability, which is good for confidence. In terms of hard numbers, I would note that the Maltese economy is expected to expand by four per cent annually over the next two years — that is probably the strongest GDP growth in Europe.
As a funds jurisdiction, Malta will benefit from innovation in the recent past. Revisions to the rules governing partnerships should strengthen the attraction of Malta for private equity and family office structures.
Following two rounds of public consultations, the regulator launched a new framework for Notified Professional Investor Funds (NPIFs) at the end of 2023.
The NPIFs complement existing fund frameworks and benefit from a streamlined onboarding process. In the coming years, look for the NPIFs to grow in number and AUM.
It is also likely that there will be expansion in parallel structures for international managers. On one hand, that means Malta-domiciled funds for EU investors. On the other hand, there will probably be Cayman Islands-domiciled funds for investors in the rest of the world. In any event, digital assets will probably become a bigger part of the mix.
Fexserv Fund Services will remain a leader. We offer operational excellence, practical expertise and an approach that is tailored to the specific needs of our clients.
Personal bio
Anabel joined Fexserv Fund Services in 2008, and today occupies the position of managing director. She started her career in audit and assurance with PwC, where she was involved within different industries and worked in various offices, including Malta and London. Subsequently, she took up accountancy and finance positions with leading entities operating out of Malta, including an appointment within the Finance Department of HSBC Securities Services (Malta) Limited.
She holds a Bachelor of Commerce degree, an honours degree in Accountancy, and a masters degree in Financial Services from the University of Malta. Anabel is an European Fund and Asset Management Association (EFAMA) board member, the appointed chairperson of the Malta Asset Servicing Association (MASA), and a governor on the Board of Finance Malta. She is also actively involved in various industry discussions and is a visiting lecturer at the University of Malta.
← Previous interview
Tesseract
James Harris
Next interview →
Clearstream
Ines Santiago
Image: Fexserv Fund Services 
