Schemes classified as private CISs would not require a license to operate. To qualify as a private CIS, a scheme must satisfy all of the following conditions:

  • The number of participants do not exceed 15
  • Participants are either close friends or relatives of the promoters
  • The scheme is private in nature and purpose
  • The scheme does not qualify as a PIF. The main characteristics of these schemes are:
  • Companies may participate in a private CIS as long as the above conditions are not violated after taking into account the number and characteristics of beneficial owners. Such companies may only act as investors
  • While a license is not required, schemes must still pass the fit and proper tests (refer to Chapter 2) and show the ability to comply with all relevant rules and regulations
  • The MFSA will limit its due diligence procedures in connection with the integrity of persons concerned, and will not assess the competence of persons responsible for the management of such schemes
  • A private CIS must still produce audited financial statements within six months after year-end, including an auditor’s report stating that the private CIS satisfied the requirements of a private CIS during the financial year
  • The scheme will not be subjected to investment or borrowing restrictions or conditions save those specified in the Investment Service Rules
  • Any changes in directors or participants, constitutional documents and location of premises must be duly notified to the MFSA


Practise Areas


ATL Business Centre
89, Suite 3, Cannon Road, St Venera,
SVR9035, Malta

Tel: +356 2779 0100
Fax: +356 2733 2844

Skype: rudolph.alleybe