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Growth of Malta’s Financial Sector and MFSA’s Role

The Malta Financial Services Authority (MFSA) has recently released its 2024 annual report, highlighting significant strides in regulatory progress and strategic reforms aimed at bolstering the financial services sector in Malta. The report emphasizes the importance of collaboration with stakeholders at both local and international levels in fostering a robust financial ecosystem.

Over the past year, Malta's financial services sector has proven its resilience amidst an evolving economic landscape. The industry now accounts for 8.2% of the nation’s gross value added (GVA), marking a growth of 0.2 percentage points from the previous year. Employment within this sector has also seen steady growth, with 14,745 individuals employed as of October 2024, translating to 5.1% of the total employed population in Malta. Notably, the workforce in this sector has expanded by 21.6% since 2020, demonstrating sustained demand and robust investor interest.

Regulatory Landscape

In 2024, the MFSA reinforced its commitment to market integrity, evidenced by a 33% increase in regulatory interactions compared to the previous year. The authority has enacted 134 enforcement measures, imposing fines totaling €926,485, alongside public warnings and consumer advisories, emphasizing a proactive stance toward compliance and market integrity.

Throughout the year, the MFSA has prioritized consumer protection by swiftly identifying emerging risks and guiding businesses towards fairer and more transparent practices. Regulatory expectations were effectively communicated across the sector through ongoing stakeholder engagement, which included hosting eleven conferences and workshops, along with the issuance of 119 circulars and 15 letters addressed to CEOs.

Educational initiatives for consumers also remain a cornerstone of the MFSA's strategy. Campaigns addressing issues such as financial scams, greenwashing, and bond investments have been instrumental in demystifying financial products, thus empowering individuals to make informed decisions.

Commitment to Development

The MFSA has solidified its position as a forward-thinking employer by investing heavily in training and professional development. In 2024 alone, over 24,600 hours of training were delivered through the MFSA’s Financial Supervisors’ Academy. Moreover, the authority partnered with the University of Malta to introduce a postgraduate diploma in financial regulation and compliance, now in its second year, with applications due by July 23, 2025.

Strengthening Local and International Partnerships

International collaboration has remained a priority for the MFSA, with officials participating in over 150 international forums and engaging in high-level discussions with global regulatory bodies including the European Banking Authority and the European Securities and Markets Authority. These meetings facilitated the exchange of best practices, further refining Malta’s regulatory framework.

On the domestic front, partnerships with the Financial Intelligence Analysis Unit and the Central Bank of Malta have fostered a harmonized approach to regulatory reporting, thus reducing administrative burdens and preventing financial crime while mitigating systemic risk.

A Vision for the Future

Reflecting on the past year’s accomplishments, MFSA’s CEO Kenneth Farrugia remarked, "In 2024, we made significant progress in enhancing supervision aligned with international best practices and consumer protection. Our workforce remains central to our strategy, and we take pride in the culture of excellence we’re cultivating. Our focus continues to be on regulatory agility, operational resilience, and ensuring a forward-thinking, equitable, and transparent financial system." The MFSA's complete 2024 annual report is available for download at mfsa.mt/annual-report-2024.

About MFSA

The Malta Financial Services Authority is the sole regulator for financial services in Malta. For more information, visit mfsa.mt or contact the MFSA’s communications office at info@mfsa.mt.