Malta's Financial Sector Continues Steady Growth Amid Enhanced Regulatory Oversight

Malta's Financial Sector Continues Steady Growth

The Malta Financial Services Authority (MFSA) recently released its Annual Report for 2024, revealing significant progress in regulatory frameworks, strategic reforms, and strong engagement with both local and international stakeholders. As Malta's financial sector evolves, it demonstrates resilience and growth, affirming its critical role within the country’s economy.

Economic Impact and Employment Growth

In the latest report, it was noted that the financial services sector now accounts for 8.2% of Malta's Gross Value Added (GVA), marking an increase of 0.2 percentage points from the previous year. This is indicative of the sector's persistent strength and the increasing demand from investors. Moreover, employment in this sector has consistently risen, with statistics indicating that as of October 2024, approximately 14,745 individuals were employed in financial services, representing 5.1% of Malta's total workforce. This growth reflects a 21.6% increase in workforce since 2020, underscoring the attractiveness of Malta as a financial services hub.

Enhanced Regulatory Oversight

The year 2024 was characterized by a proactive approach to supervision, with a notable 33% increase in supervisory interactions. The MFSA implemented 134 enforcement measures, which included issuance of fines totaling €926,485, along with 49 public warnings and 5 consumer alerts—demonstrating a firm commitment to maintaining market integrity. This proactive stance emphasizes the Authority's aim to create a fair and transparent financial environment for consumers and investors alike.

Consumer Guidance and Education

In addition to regulatory enforcement, the MFSA placed a strong emphasis on consumer protection throughout the year. The Authority worked diligently to identify emerging risks and guided businesses towards fairer practices. Clear communication of regulatory expectations was prioritized, leading to the organization of eleven sector conferences and workshops throughout the year. They issued 119 circulars and published 15 letters titled 'Dear CEO'. Consumer education campaigns were robust, focusing on issues like financial scams, greenwashing, and bond investment clarity, ultimately empowering retail users to make informed decisions.

Investment in Talent Development

Recognizing the importance of human resources, the MFSA also reinforced its role as a forward-thinking employer by investing heavily in training and professional development. More than 24,600 hours of training were delivered through its Financial Supervisors Academy. Furthermore, the MFSA partnered with the University of Malta to offer a Postgraduate Diploma in Financial Regulation and Compliance, which is now in its second year, allowing more professionals to contribute meaningfully to the sector.

Strengthening Local and International Ties

International engagement remained a priority for the MFSA with officials participating in over 150 international forums and high-level meetings with global regulatory bodies, such as the European Banking Authority and the European Securities and Markets Authority. On a local front, collaboration with the Financial Intelligence Analysis Unit (FIAU) and the Central Bank of Malta contributed to a more cohesive regulatory framework aimed at reducing administrative burdens while combating financial crime and systemic risks.

A Vision for the Future

Reflecting on the achievements of 2024, Kenneth Farrugia, the MFSA's CEO, stated, “This year, we made significant strides in enhancing oversight, aligning with international best practices, and strengthening consumer protection.” With their committed workforce at the core of their strategy, the MFSA continues to foster a culture of excellence. The focus remains on regulatory agility, operational resilience, and ensuring that Malta's financial system remains fair, transparent, and prepared for future challenges.

The complete 2024 Annual Report of the MFSA can be downloaded at MFSA Annual Report 2024.

About MFSA

The Malta Financial Services Authority (MFSA) is the sole regulator for financial services in Malta. More information can be found at MFSA Website or by contacting MFSA Communications at [email protected].