Insights

The Trusts and Trustees Act (Fees) Regulations 2015 (published on the 23rd January, 2015 by means of Legal Notice 28 of 2015) have substituted the previous regulations that were published in 2008.  In terms of these new Regulations the fees were slightly raised for trustees and administrators to apply to be authorised (in terms of article 43(3) or article 43(12) of the Trusts and Trustees Act (“TTA”, chapter 331 of the Laws of Malta) – from EUR250 to EUR500, which fee is due upon submission of the application and is due irrespective of whether the authorisation is eventually granted or not.  The fee is now described purely as an ‘application fee’ (rather than an ‘application and processing fee’ as it was referred to under the previous regulations).

Similarly, the application fee in terms of the so-called ‘fast-track’ procedure in terms of article 43(8) of the TTA, whereby:

(i) a person with a licence or authorisation equivalent to subarticle (6)(a)(i) to (iii) (covering a banking institution, an investment services company or an insurance company or insurance intermediary) issued by the MFSA or the relevant regulatory authority in an approved jurisdiction and who will be acting as trustee not in the course of its ordinary business for which they are licensed;

(ii) a person having a licence or authorisation to act as a trustee issued by the relevant regulatory authority in an approved jurisdiction; or

(iii) a person registered under the Retirement Pensions Act as a retirement scheme administrator notifies the MFSA with their intention to provide trustee services at least 45 days prior to commencing operations in Malta

have also been increased from EUR250 to EUR500.

As a result of the new Regulations, the fees for registration of a Private Trust Company (or trustee of a family trust, as it is referred to in article 43B of the TTA) with the MFSA have also been published, with a reduced fee of EUR250 applying in this case.

In terms of the annual supervisory fee, this too is lower than the fee otherwise applicable to other trustees, at EUR1,000 per annum (when compared to the annual supervisory fee due by professional trustees and administrators of private foundations which was increased to EUR3,000 from EUR2,500 per annum).  Such fees are payable on the date when authorisation is granted (or registration approved, in the case of PTCs) and, thereafter, annually upon the anniversary of the date of authorisation or registration.  It is relevant to note that whereas under the old regulations the annual fee was referred to merely as an ‘authorisation fee’, with the new Regulations the regulatory role of the MFSA has been emphasised by means of the reference to this fee as an ‘annual supervisory fee’.

These revised fees apply to fees falling due on or after 1st January, 2015 and are deemed to have entered into force with effect from that date.  None of the fees established as being due in terms of the Regulations are refundable.