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.
Authorisations
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…
Supervision Directorate
Conduct Supervision
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. The Conduct Supervision function is also responsible for authorising and subsequently overseeing the conduct of trustees and corporate service providers (CSPs).
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.
Strategy, Policy & Innovation Directorate
The Strategy, Policy and Innovation function is responsible for providing advice, analyses and reviews on current and prospective strategies and policies related to key priority areas in respect to the various financial services sectors. The function also proposes new areas which could potentially be delved into by the MFSA and provides insight on how related frameworks may be developed.
In formulating and proposing policies, the function seeks to ensure that the Authority is proactive in the face of new opportunities, perceived risks and changing international standards which may impact the financial services sector, whilst fostering innovation and enhancing access to financial products. The function hence contributes towards strengthening Malta’s framework for the regulation of the sector, whilst promoting and coordinating strategic thinking across all functions within the MFSA.
As part of its remit, the function is also responsible for participating in selected local, EU and international fora, including committees of the European Supervisory Authorities, which may impinge on the Authority’s strategies and policies. The function is also involved in the strategic integration of sustainable finance regulation across the Authority’s structures.
