The MFSA and the Austrian Financial Market Authority (FMA) recently had the opportunity of strengthening their ties through a series of bilateral meetings on supervisory issues that were held in Malta between the 2nd and 3rd April 2007. The meetings were also the setting for the signing of a Memorandum of Understanding between the two Authorities, discussions on which have been taking place for quite some time.

The Memorandum was signed at the MFSA by its Chairman, Prof. J.V. Bannister, and by FMA’s Executive Director, Mr Heinrich Traumüller. It covers co-operation in the supervision of cross-border establishments of credit institutions incorporated within the Maltese or Austrian jurisdictions. The Austrian Federal Ministry of Finance and the Oesterreichische Nationalbank are also signatories to this memorandum.

A memorandum of understanding (MoU) is in essence a document setting out mutual cooperation between the parties. MoUs provide a predictable and effective framework for the enhancement of the working relationship between the MFSA and other organisations, reflecting the fact that whilst all of the concerned bodies are operationally independent and have distinct functions, they need to co-operate and communicate constructively with each other in order to carry out their functions effectively, especially in cross-border situations.