The Malta Financial Services Authority (MFSA) hosted a major conference on internal audit transformation, bringing together over 300 financial services professionals to examine the evolving role of audit functions in regulatory oversight. The event, held on 12 February 2026 in partnership with the Institute of Internal Auditors Malta Chapter, highlighted the sector's shift from compliance-focused to strategic, risk-based approaches.
Regulatory Evolution and Strategic Impact
MFSA CEO Kenneth Farrugia opened the conference by outlining the Authority's transformation from a compliance-driven regulator to a risk-based, forward-looking supervisory authority. Farrugia emphasised the critical importance of credible, independent assurance in maintaining market confidence across Malta's financial services ecosystem.
The keynote address by Sandro Boeri, ECIIA Board Member, challenged traditional audit models with his presentation "Internal Audit: Making a Strategic Impact." Boeri argued that internal audit functions must evolve beyond conventional compliance frameworks to become catalysts for organisational improvement, emphasising the need for foresight, independence, and tangible value creation.
European Perspective and Cross-Sector Applications
Banafsheh Geretzki, Director Internal Audit of the European Central Bank and Chairperson of the ECB Internal Audit Committee, provided insights into European supervisory expectations for high-quality assurance. Her presentation offered a continental perspective on how regulatory authorities increasingly rely on robust internal audit functions.
A high-level panel featuring senior MFSA officials explored internal audit applications across multiple sectors, including banking, insurance, pensions, investment services, capital markets, and fintech. Additional sessions addressed emerging challenges, particularly artificial intelligence's impact on audit methodologies and evolving expectations around talent acquisition and independence requirements.
Industry Transformation
The conference reflects Malta's financial services sector's broader evolution toward more sophisticated risk management and regulatory compliance frameworks. As the industry continues to adapt to technological advancement and regulatory change, internal audit functions are positioned to play an increasingly strategic role in organisational governance and supervisory relationships.
Source: From oversight to insight: Internal audit takes centre stage at MFSA conference