The Malta Financial Services Authority (MFSA) was established in 2002 by the Malta Financial Services Authority Act (Cap 330). The Authority is the single regulator for the financial services sector, which includes credit and financial institutions, securities and investment services companies, recognised investment exchanges, insurance companies, insurance intermediaries, pension schemes, corporate service providers, trustees, and virtual financial assets. The MFSA is also responsible for the admissibility to listing on recognised investment exchanges and for the resolution of banks in terms of the MFSA Act.
The MFSA is the competent authority in Malta responsible for granting authorisation to persons seeking to carry out financial services activities. Authorisation is an important part of the overall supervisory framework. Read more…
The Conduct Supervision function ensures that clients of financial services are treated fairly, honestly, and professionally by regulated entities, by setting up a regulatory framework that secures appropriate customer protection. The team also enacts a pre-emptive supervisory regime which addresses potential or emerging risks for financial services consumers, together with an operational regime to strengthen the responsibilities of regulated persons in treating customers fairly.
EU and International Affairs
Resolution operates independently from the Supervisory Directorate and other functions and is primarily responsible for resolution-planning activities for credit institutions and certain investment services firms. It is also responsible for the policies and legislation forming the Resolution Framework. The same responsibilities will eventually extend to central counterparties and insurance undertakings. The Board of Governors is the designated resolution authority in Malta, however, the MFSA’s Resolution Committee is the decision-making body, advised by the function as to whether an institution should go into liquidation or resolution, and on the application of resolution tools, as necessary. Read more…
Supervisory Quality Assurance
The Supervisory Quality Assurance (SQA) function was formally established in March 2020 by the Authority as an additional second line of defence within the MFSA. SQA was set up with the main objective of developing a quality-focused culture within the supervisory functions and to provide assurance to management regarding the quality of supervisory activities and deliverables, specifically in terms of consistency, effectiveness, efficiency, and timeliness. SQA is involved in new projects and whenever there are changes in supervisory procedures in order to assess and ensure that the required quality is present immediately at inception.