by Dr. Clint Bennetti, Future Citizen Institute
The Malta Residency and Visa Regulations have been amended to extend the list of Qualifying Investments. The revised regulations now state that that the investments referred to in regulation 6(1) (d) of the said regulations, can be made in debt or equity securities listed on the Official List of the Malta Stock Exchange. Investment in these securities may also be achieved through an investment in collective investment schemes that are licensed and are on the Official List of the Malta Stock Exchange.
These changes are very positive and are expected to make the programme more attractive since applicants will have a wider choice when selecting investments with a view to satisfying the investment requirements of the programme.
As things stood before these changes were implemented, applicants were required to invest a minimum of EUR 250,000 in Malta Government Stock or in Maltese collective investment schemes that invested at least 85% of their assets in Malta Government Stocks, and to hold such investment for a minimum period of five years.
Following these changes which came into effect in September, applicants will be able to invest in any debt or equity securities listed on the Official List of the Malta Stock Exchange and/or in collective investment schemes that invest in such debt or equity securities. Such collective investment schemes must be licensed and be listed on the Official List of the Malta Stock Exchange. The amount required to be invested (EUR 250,000) and the period for which the investment must be held (five years) remain unchanged.
To date, there exist a handful of Maltese collective investment schemes that invest at least 85% of their assets in Malta Government Stocks and that are thus eligible as a Qualifying Investment in terms of the Malta Residency and Visa Programme and the Malta Individual Investor Programme.
The latest addition to this list is the Malta Government Securities Fund, a Sub-Fund of the Kylin Prime SICAV plc. The Kylin Prime SICAV plc forms part of the Kylin Prime Group, a group of companies that is active in the citizenship and residency by investment industry as well as the asset management, banking and trusts and corporate services industries globally.
Following the publication of these amendments, Kylin Prime Group has initiated the process to update the investment strategies of the Malta Government Securities Fund to ensure that its investors take the full benefit of the wider list of eligible investments of the Malta Residency and Visa Programme as well as the list of permissible investments under the Malta Individual Investor Programme. By investing in this fund, investors will indirectly participate in the success of the Maltese economy.
This is a significant step for the Kylin Prime Group and for its operations in Malta. The Scheme and its Sub-Fund will allow the Group to provide a holistic service to its clients, ensuring that the Group is with them every step of the way. This entity will complement and enhance the other services that the Group offers, which include the provision of residency and citizenship solutions. Kylin Prime Group is very keen to assist its clients by enabling them to benefit from the success of the Maltese economy in different ways and the suite of services that they offer reflects this.
Note: What is an equity security and debt security?
An Equity security is an investment in stock issued by another company. The accounting for an investment in an equity security is determined by the amount of control of and influence over operating decisions the company purchasing the stock has over the company issuing the stock.
Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of deposit (CD), municipal bond or preferred stock, that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate, and maturity and renewal date.
