Twenty-five UK fund management companies set up an office in Malta last year, The Times Business has learnt, including 10 which redomiciled their operations from offshore domiciles such as the Channel Islands, Bermuda and the Cayman Islands. The UK companies includes big names such as the £1 billion oil traders Bluegold, Pamplona Capital (€1.3 billion) and Liongate Capital ($2.5 billion), as well as Finisterre, Fortelus, DAM, Altedge Capital, Occam, Oceanwood, Blue Planet and Tell.

The Malta Financial Services Authority recently issued guidelines regarding the redomiciliation of offshore funds to Malta. The need for such guidelines arose due to an increase in the number of managers enquiring about redomiciliation procedures.

The Malta Funds regime allows funds to have external administrators and custodians in contrast to other jurisdictions which require the service providers to be present in the domicile. According to the MFSA this flexibility makes Malta the most effective and efficient EU jurisdiction when redomiciliation is being considered.

Malta started developing as a financial centre in 1994, but the financial services sector expanding rapidly after Malta joined the EU in 2004.

Funds domiciled in Malta pay no tax and non-resident investors are not subject to any withholding tax. There is no VAT on fund management.

The total number of fund management companies of non-Maltese origin which were licensed by the MFSA by the end of 2009 amounted to 66. There are currently over 400 funds and sub-funds domiciled in Malta. Malta's low taxes, a favourable regulatory regime, its membership of the EU as well as low operating costs compared to other financial centres make it an attractive destination for fund managers.