The MFSA and the Maltese financial services jurisdiction was featured in a Special Reportage published in this month's special edition of Invest'News published by Voxia.
Malta is placed among the top financial hubs in the European Union and, in spite of the global economic crisis, the country's financial services industry has continued to expand. Malta has stood out in Europe as one of the very few countries experiencing real growth, falling unemployment and stable public finances.
2014 also saw Malta enter the global top ten for the soundness of its banks and ranked in the top fifteen for its audit and reporting standards. More positive news came with the International Monetary Fund (IMF) Article IV assessment that 'Malta continues to host a relatively large financial sector without exposing itself to excessive risk'.
In a detailed report about the financial services industry, the report pointed out some of Malta's key offering: "High standards, openness, cooperation, entrepreneurship and nimbleness characterise the Maltese financial services sector."
Looking at major regulatory developments, Invest'News highlights the fact that 2014 and 2015 so far have been particularly busy years not least in the implementation of important legislative and supervisory reforms including the implementation of the Single Supervisory Mechanism by the ECB, and other important pieces of European legislation including the Capital Requirements Directive and Solvency II for insurance.
The MFSA has also been working on internal reforms with a strong focus on good customer outcomes.
The MFSA has also been very active in seeking ways to sustain dynamism in the funds sector. One important development in this regard was the publication of the Loan Fund Rules in April 2014, which have been recently revised, placing Malta at the forefront of this growing market.
The Rules are based on the recommendations of the Financial Stability Board which was entrusted by the G20 to look into the standards of legislation in shadow banking. This has enabled us to design a robust framework for closed-ended type funds that aim to invest in loan origination or managing loan portfolios.
The Report also tackles the future challenges facing the MFSA, arising from increased complexity in the demands from consumers, innovation in the market and changes in the financial landscape all call for enhanced industry rules and regulations that are able to better cope with the market.
Currently, there are various regulatory developments underway including the AIFMD, revision of the Capital Requirements Directive (CRD IV), revision of the Market Abuse Directive and review of MiFID; which will definitely impact the financial services sector in Malta.
The full extract of the article featuring the MFSA is available on https://goo.gl/Gg5WpA.
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