By Kenneth Farrugia - Chief Executive Officer, MFSA
In the months since I took over as CEO of the Malta Financial Services Authority, I have developed a deeper understanding of its role within Malta's financial services industry.
As we journey through this sector’s dynamic terrain, I would like to share some insights into the opportunities, challenges, and collaborative efforts that should pave the way for a brighter future.
The challenges encountered by worldwide disruptions, particularly the COVID-19 pandemic and the resulting volatility, highlighted the sector's tenacity and unrelenting growth. Our accomplishments are also proof of our unwavering dedication. We recognise that the road ahead is paved with potential for additional growth and progress, as well as inevitable challenges, and we will not be complacent.
The MFSA published its Strategic Statement earlier this year, outlining the Authority’s long-term goals and more immediate strategic priorities in the light of the current economic environment. However, strategies are mere signposts; their genuine value lies in execution. Our commitment goes beyond words, manifesting in actual milestones and action plans - which are also in line with the strategy of the Malta Financial Services Advisory Council for the industry- all of which have been carefully woven into our strategic fabric and operations.
Continuous improvement and investment in efficient processes are critical for the future. We must welcome change and innovation in critical operating areas to truly increase efficiency. We have been improving our own digital capabilities and infrastructure at the MFSA in order to efficiently supervise and regulate the emerging technologies and business models. By consistently evaluating and adjusting our processes, our aim is to continually ensure a high level of compliance while also being more efficient and responsive to the requirements of the industry and the public.
We recognise the need to develop our human resources and competencies to satisfy the evolving demands and expectations of the industry and the public. We are committed to attracting, developing and retaining the best talent in the market, as well as establishing an organisational culture of excellence, increasing accountability and strengthening collaboration within the organisation and the industry.
Consistent with our strategic priorities, the MFSA acknowledges the growing impetus towards a more sustainable financial system. The EU's regulatory policy on ESG considerations for financial institutions and investors has resulted in substantial changes such as increased transparency of sustainable financial products. We are dedicated to advancing sustainable finance and addressing global issues such as climate change and social inequality.
We also value innovation in order to sustain efficiency. We are preparing ourselves to properly supervise emerging technologies by strengthening our digital capabilities and refining our operational paradigms. This quest helps us to achieve compliance while also encouraging greater agility and responsiveness to the needs of the industry and the public.
The rise of digitalisation also provides us with an opportunity to streamline operations and foster cooperation among various authorities. We are committed to investing in public-private partnerships and consultation initiatives to ensure improved alignment and understanding across all stakeholders. This is especially important when it comes to preventing money laundering and the financing of terrorism, where success is dependent on seamless coordination and information sharing among national AML/CFT supervisors and law enforcement authorities.
Striking a good balance between growth and compliance is critical to the industry’s success. Together, we navigate uncharted waters, propelled by innovation, collaboration, and unrelenting dedication. While challenges await, we are resolutely committed to not only overcome them but to drive meaningful progress across Malta's financial services landscape.
