Malta’s Financial Regulatory Bodies Emerge as Global Powerhouse
A Growing Sector in the Maltese Economy
The Maltese financial services sector has emerged as one of the fastest-growing sectors in the country’s economy, accounting for 12 percent of Malta’s GDP and generating over €1 billion in direct and indirect revenue. The island nation has gained international recognition as a world-class center for financial services, attracting blue chip banks, fund managers, investment houses, and professional practices from around the globe.
International Recognition
According to the World Economic Forum’s Global Competitiveness Report 2017-2018, Malta ranks among the top 20 financial services jurisdictions globally, with a sound banking system and robust regulation of securities exchanges. The Maltese government has developed a comprehensive legal framework for financial services, which is enforced by the Malta Financial Services Authority (MFSA).
A Favorable Regulatory Environment
The MFSA adheres to EU standards and international frameworks, providing a favorable regulatory environment for financial institutions. Key legislation includes:
- Companies Act: Allows for the establishment of investment companies with variable share capital and foreign currency-denominated shares.
- Investment Services Act: Regulates the entire range of investment business in Malta.
A Leader in Blockchain Technology
Malta is also at the forefront of Blockchain technology, with the country embracing cryptocurrency and other fintech solutions. In July 2018, the Maltese Parliament passed three bills into law, including:
- Malta Digital Innovation Authority Act: Provides a regulatory framework for digital innovation.
- Innovative Technology Arrangements and Services Act: Regulates innovative technology arrangements and services.
- Virtual Financial Assets Act: Defines virtual financial assets and regulates their treatment.
Opportunities Abound
Opportunities abound in Malta’s financial sector, particularly in areas such as:
- Blockchain technology
- Trade finance
- Group marketing
- Private banking
- Trust business
- Investment banking
- Venture capital
- Captive insurance
- Fund management
- Custody services
- Outsourcing and coordination services
A Commitment to Growth and Innovation
The Maltese government has committed to sustained development in the financial sector, with a range of initiatives aimed at promoting growth and innovation. With its robust regulatory framework and favorable business environment, Malta is an attractive destination for financial institutions looking to expand their operations globally.