Malta’s fund industry has opened up to one of the world's largest pools of private capital. The Malta Financial Services Authority (MFSA) and the People’s Republic of China Securities Regulation Commission have signed a Memorandum of Understanding (MoU), allowing Chinese Qualified Domestic Institutional Investors to invest, on behalf of Chinese investors, domiciled investment funds regulated by the MFSA into Malta. At the same time, MFSA licensed companies will be able to access the Chinese Qualified Foreign Institutional Investor status and invest directly in China.

“All the signs are that the rate of growth of the financial services sector in Malta will increase as the global economy emerges from recession. Financial services firms are entering a new economic environment which will drive them to seek new market opportunities and new methods of doing business”, said Finance Minister Tonio Fenech during a press conference on the occasion of the signing of the memorandum. He further explained that the Maltese government is committed to ensure that all its institutions are on deck and that the legislative, administrative and regulatory infrastructure is responding to the changing regulatory climate in a fast, efficient and effective manner.

 

The signing of the MoU is the result of negotiations which commenced in 2008 and places Malta’s funds industry at the same level with the major funds domiciles particularly in the European Union. A similar agreement with the People’s Republic of China Banking Regulatory Commission is expected to be signed shortly.

The purpose of the MoU is to protect and promote the development of the securities markets by providing a framework for co-operation, increased mutual understanding and the exchange of information, to the extent permitted by the laws and regulations in force in Malta and China. It will most importantly facilitate business for financial institutions from either Malta or China, doing business in either country.