Beyond safekeeping – how depositaries ensure funds' security and success
In just eight years, Q Securities has grown its operations to three key fund jurisdictions, servicing 225 funds with assets under custody of around €17bn. The head of the Malta branch, Filip Suchta, explains how it all started.
Photo – Mr. Filip Suchta, Head of the Malta branch Q Securities
For those who don't know your company, can you provide some background?
Q Securities is an independent MiFID-licensed investment firm which has been providing depositary services to alternative investment funds since 2016. For the past decade, it's been a preferred partner for capital markets professionals like investment funds, asset managers and other players in the investment ecosystem.
Having obtained a leading position on the Polish market, in 2021, we opened a branch in Luxembourg. In the Grand Duchy, we have been providing depositary services for almost two years now, becoming one of the fastest-growing independent third-party depositaries on the market.
Last year, looking to continue our development, we decided to enter the Maltese market and obtained a full depositary licence from the MFSA at the start of 2023.
Q Securities is approved by the three jurisdictions' financial regulators to offer depositary services for alternative investment funds, including custody of financial instruments. On the Polish market, the licence additionally covers equity and debt financing, securities safekeeping, and brokerage transactions services for a variety of instruments.
Can you share a little-known fact about your company?
Our depositary offering was built on principles reflecting our deep analysis of the depositary market. That's why our open architecture allows us to plug in external service providers to ensure a bespoke solution suitable to each fund's needs. We pride ourselves in being highly responsive and providing top-quality service, ensuring our role as a depositary is not a hindrance to the fund manager; on the contrary; we play an essential role in the effective management and administration of funds.
What are you currently working on and what are your company's plans and strategic priorities for the coming years?
Having obtained the MFSA's depositary licence only recently (in February 2023), our primary goal is to establish ourselves as one of Malta's leading depositary service providers. We strongly believe in the potential of Malta as a competitive alternative to other first-choice fund jurisdictions and want to do our part in helping Malta realise its enormous potential.
Outside of Malta, our goals include further growing our Luxembourg branch and maintaining the market-leading position in Poland.
Are there any projects/achievements of your company that you are exceptionally proud of?
I'm especially proud of our successful company launch in Luxembourg. Within less than two years, Q Securities has managed to become one of the fastest-growing independent depositaries in the world's second-largest fund jurisdiction, which was an enormous challenge but one we faced with determination and belief in the strength of our product.
I'm happy to say I played a part in the success as I was responsible for the overall legal coordination of the project. Thanks to our team's efforts, we obtained the licence from the Luxembourg regulator in a record time of two months. I'm confident our vast experience will allow us to replicate this success in Malta.
What in your opinion makes Malta an effective jurisdiction to set up a business?
Aside from the usually mentioned advantages of Malta, such as its high level of regulation, a trustworthy regulator, as well as a skilled, experienced and English-speaking workforce, in my opinion, the critical factor which makes Malta an attractive jurisdiction to set up a business is the comprehensive drive of both public and private players to develop and grow the market in a sustainable yet dynamic fashion. It's imperative in today's world to be able to adapt quickly to ever-changing conditions, and I believe Malta has all the tools and the determination to do that.
What kind of people/companies in the financial services community would you want to connect with?
We are eager to connect with promoters, investors and managers looking to set up new funds in Malta or who are considering changing their current service providers in the depositary/custody area.
Even though we are a relative newcomer to the market, I'm happy to say we've already managed to build relationships with market leaders in the fund sector and hope to develop these connections further to secure a strong position in Malta and enhance the quality and competition of depositary services available to funds here.
Bio:
Filip Suchta is the branch director and country head of the Q Securities Malta branch. He is a renowned expert in all matters related to investment funds and capital markets, and focuses mainly on depositary and custody services regulatory issues.
He has been supporting the company for several years as a partner at Matczuk Wieczorek & Partners, one of the leading Polish law firms specialising in capital markets law, a role he still maintains. He has also served as a supervisory board member on multiple investment fund management companies. Filip has supervised all legal aspects of Q Securities' depositary services since 2016 and, since 2023, he has headed the company's Malta branch.
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