The Malta Financial Services Authority (MFSA) has today launched a consultation on a Capital Markets Strategy. The ultimate objectives of the proposed strategy are to provide equal and fair opportunities to market players, safeguard the stability and integrity of the financial markets, and protect investors.
The document proposes a Strategy to take Malta’s Capital Markets to the next level by establishing the Authority’s risk appetite when considering applications for admissibility to listing; enhancing the legal framework to improve efficacy, efficiency, and effectiveness; strengthening the Sponsors Regime; building supervisory capacity; and setting out a strategy for investor education; with the aim of encouraging fair, efficient and transparent capital markets.
“Efficient local capital markets are crucial, not only for a rapid economic recovery from COVID-19 but also to improve financial stability and maintain essential investment flows to the advantage of investors and businesses alike. The Authority is mindful of the necessity of improving and growing a liquid local capital market through a framework that would cater for the ever-changing requirements of companies seeking access to finance whilst safeguarding investors and the integrity of the markets. We look forward to receiving feedback from all stakeholders on our proposals in order to work together to create a truly fluid and robust regulatory framework for the local capital markets.” said Christopher Buttigieg, CEO ad interim and Chief Officer Supervision of the MFSA.
Doreen Balzan, Head of Securities and Markets Supervision at the MFSA added that “the development of a market economy and its financial stability is dependent on the growth of the capital market. From a regulatory framework perspective, the proposed Capital Markets Strategy aims to broaden the local horizons within a clear set of rules and predefined parameters. This will not only serve to grow the local capital markets but also to create a transparent framework enabling the local capital market to function more efficiently and fairly.”
The MFSA is the competent authority for the regulation of trading venues, market infrastructures, and the prevention of financial markets abuse. The Authority’s Board of Governors also acts as the Listing Authority.