Aronne Debono, Head of Business Development & Corporate Services at BOV Fund Services, shares how the firm has established itself as Malta’s leading fund administrator. From leveraging cutting-edge technology and regulatory foresight to embracing Malta’s cost-effective, EU-accessible ecosystem, Debono outlines how BOV Fund Services delivers agile, client-focused solutions, most recently through the fast-track NPIF framework. He also highlights the company’s strong investment in talent, ensuring service excellence and long-term growth.

• How does BOV Fund Services position itself as a leader in the fund administration market, both in Malta and internationally?

BOV Fund Services is Malta’s fund industry pioneer and a fully owned subsidiary of Bank of Valletta plc, Malta’s leading banking group. Through the dedication of its highly qualified professional human resources and significant investment in state-of-the-art technology, BOV Fund Services has positioned itself as Malta’s leading fund administrator. BOV Fund Services provides a comprehensive suite of services to fund managers and fund promoters comprising of a one-stop-shop turnkey solution in structuring all fund typologies, as well as a full suite of fund administration services including fund valuation and fund accounting, shareholder registry services, regulatory reporting, corporate services, and other ancillary services.

BOV Fund Services long-term growth strategy is to always put the requirements of its clients as a priority, whilst always being at the forefront in the industry in ensuring that additional services required by funds and fund managers arising out of any new regulation can be fully catered for. This is possible thanks to a pro-active stance in understanding the implications of the regulations, investing in state-of-the-art infrastructure and continuous employee development.

BOV Fund Services has consecutively been accredited to satisfy the ISAE3402 standards and prides itself that it is highly committed to quality and compliance, which is continuously reflected in the sterling service provided to clients. 

• What strategic advantages does Malta offer to fund managers in terms of regulatory efficiency, EU access, and financial ecosystem maturity?

As an EU domicile, Malta offers easy access to all other EU countries. Moreover, as a fund domicile, Malta is very cost effective both for set-up as well as for ongoing charges, when compared to other main fund jurisdictions. Malta has relatively a mature fund industry and a well-established ecosystem of a good number of high-quality service providers, being it Fund Administrators, AIFMs, Depositories, Banks, Law firms specialising in the finance sector and corporate service providers. The can-do mindset of these service providers and the pro-business approach, complements very well with the approachability of the regulator. All this would not be possible without the strong legal framework that Malta has in place.

One should also consider the tax efficient framework that Malta has. The corporate tax rate is 35%, however, there are several tax incentives for Fund Managers which reduces the effective tax paid. This is supplemented by the large number of double tax treaties that Malta has in place with all major economies.

• Can you share insights on the NPIF framework and how it’s enabling quicker time-to-market for fund managers in Malta?

In Malta there is an ongoing drive to innovate the alternative investment space and with the recent introduction of the Notified Professional Investor Fund (NPIF) framework, which is a fast-track process for below-threshold AIFs and AIF managers (AIFMs), it places the jurisdiction way ahead of many others in terms of exploiting new opportunities.

What distinguishes NPIFs from other funds, is their remarkable speed to market, making them a perfect fit for time-sensitive investment strategies, with just 10 business days required to launch. As NPIFs are subject to a notification process and not licensed by the Regulator, they benefit from lower setup, operational and regulatory costs as well as forgoing many processes and application documents which can lengthen the time for a fund to come to market. NPIFs must appoint a due diligence service provider and can be managed by either a third-country AIFM, a de minimis AIFM holding a license in Malta or in the EU, but as from this year, such funds can also be self-managed.

The NPIF framework merges the appeal of Malta’s existing Professional Investor Fund (PIF) framework with the benefits of ‘notified’ status, creating an efficient solution for fund managers.

• How has BOV Fund Services integrated advanced technology into its operations, and what impact has this had on client service and reporting accuracy?

In this time and age, it is very important for companies to keep up to date with evolving technologies, and to continuously evaluate their systems and develop an ICT infrastructure to continuously meet the needs of the clients and the shareholders. Through technology and innovation, a company can increase operational efficiency which can benefit both the company, in less operational costs, as well as a better and more efficient service to the client, improving the output and reporting, at no additional cost.

When it comes to technology, as part of its strategic drive, BOV Fund Services periodically undertakes a review of its operations, processes and its systems, some of which are also carried out through third-party professionals. In doing this, the Company always keeps in mind both the operational efficiency as well as improvements in client service offering.  When undergoing such review, the Company also keeps in mind flexibility. This might sound as a contradiction with the aim of gaining more operational efficiency when standardisation is key. However, since Malta caters mainly for emerging managers, launching their first fund in the industry, and different managers having different needs, the Company ensures that through its systems, it can still offer customised services throughout. This undoubtedly enhances the client’s experience.

• What role does human capital investment play in your firm’s success, and how do you ensure the development and retention of talent within the company?

BOV Fund Services recognises the importance of not only partner relationships, but also employee contributions. It therefore invests in ongoing staff training and development to maintain high service standards, with opportunities for continuous learning and professional growth offered through training programmes, workshops, and conferences that help staff members enhance their skills. This ensures that the team is knowledgeable about the latest industry developments, regulatory changes, and best practices in customer service. On top of this, the company implements formal recognition programmes, service awards, and performance bonuses that acknowledge outstanding efforts and achievements. There are also clear career progression paths and regular performance reviews so employees understand how they can grow within the organisation, their strengths, and areas for improvement.

Involving staff in decision-making processes, brainstorming sessions, and strategic planning makes employees feel valued and integral to the company’s success. Flexible and remote working arrangements are additionally made available by BOV Fund Services, offering its employees a better work/life balance. This is proven to boost staff morale and help them being more productive.

Team-building activities and social events, meanwhile, strengthen team cohesion even further and create a positive working environment, whilst comprehensive benefits packages and performance incentives lead to higher job satisfaction and increased productivity.