The Malta Financial Services Authority will be among 13 international regulators taking part in the Global Financial Innovation Network (GFIN)’s first ever Greenwashing TechSprint.
GFIN is a group of over 80 international organisations committed to supporting financial innovation in the interest of consumers and it is currently chaired by the Financial Conduct Authority (FCA). As a participating member the MFSA is inviting local firms to participate in this Greenwashing TechSprint event.
The number of investment products marketed as ‘green’ or making wider sustainability claims is growing. Exaggerated, misleading or unsubstantiated claims about Environmental, Social and Governance (ESG) credentials damage confidence in these products, which is why the MFSA wants to mitigate the notion of greenwashing and to ensure that consumers and firms can trust that products have the sustainability characteristics they claim to have.
The Authority will therefore be participating in a virtual TechSprint, hosted on the FCA’s Digital Sandbox, to bring together international regulators, firms and innovators to address sustainable finance as a collective priority. The TechSprint will allow for the development of a tool or solution that can help regulators and the market to effectively tackle the risks of greenwashing in financial services.
The MFSA is inviting all Malta-based firms which are interested in participating in the TechSprint to apply and take the opportunity to work with regulatory experts, as well as a variety of stakeholders and professionals from across the globe. Applications opened on 17 April 2023 for four weeks. Additionally, to support the application process, GFIN is providing an information pack for prospective participants.
Successful applicants will proceed through to on-boarding which will take place on 1 and 2 June. This will provide firms with training on the Digital Sandbox and an in-depth overview of the TechSprint process. The TechSprint will subsequently be launched on 5 June and will run for three months, ending with a showcase day in September 2023.
Commenting on this initiative, MFSA’s Head of FinTech Supervision Herman Ciappara stated: “Sustainable finance remains one of the MFSA’s key priorities for Malta’s financial services sector. The Authority has accelerated its efforts to align with the increased focus on this policy area by the EU and at national level. Our participation in the GFIN Greenwash TechSprint will provide the MFSA with hands-on insights which will further support our sustainable finance strategic priority.”
For a list of participating regulators and other information on the GFIN Greenwashing TechSprint, interested firms may visit the GFIN website.