Malta's Financial Sector Experiences Steady Growth Amid Regulatory Enhancements by MFSA

Malta's Financial Sector Growth



Malta's financial services sector has seen continuous growth, and the Malta Financial Services Authority (MFSA) is at the forefront of this evolution. The MFSA's recently released Annual Report for 2024 showcases a year marked by regulatory advancements, strategic reforms, and enhanced collaboration with both local and international stakeholders.

Strengthening Market Oversight



In response to a dynamic economic landscape, the MFSA has worked diligently to bolster market oversight. The authority has emphasized its dedication to consumer protection, ensuring that the interests of investors are prioritized. The overall contribution of the financial services industry to Malta's real Gross Value Added (GVA) now stands at 8.2%, reflecting growth and stability in a competitive environment. Employment in this sector also rose, with 14,745 individuals working in financial services by October 2024, constituting 5.1% of the entire workforce in Malta. Since 2020, there has been a remarkable 21.6% increase in employment within the industry, which marks a strong indicator of sustained demand and investor interest.

Regulatory Engagement and Enforcement



The year 2024 was characterized by a heightened commitment to regulatory enforcement. The MFSA recorded a 33% increase in interactions with regulatory bodies compared to the previous year. Among its achievements were 134 enforcement actions, resulting in fines totaling €926,485, along with 49 public warnings and five consumer advisories. This proactive approach underscores the MFSA's commitment to maintaining market integrity and trust.

Consumer Awareness and Education



Consumer education remained a top priority during the year. The MFSA implemented several campaigns addressing critical issues such as financial fraud, greenwashing, and bond investments, which simplified financial products for private consumers. The authority organized 11 industry conferences and workshops, disseminated 119 circulars, and sent out 15 'Dear CEO' letters, ensuring that expectations were clearly communicated across the industry. These initiatives aim to empower individuals to make informed financial choices and navigate the complexities of financial products effectively.

Investment in Talent Development



The MFSA has solidified its position as a forward-thinking employer by investing substantially in training and development. In 2024 alone, the authority facilitated over 24,600 training hours through its financial regulatory academy. In collaboration with the University of Malta, the MFSA launched a postgraduate diploma in financial regulation and compliance, which is now in its second year, with applications due by July 23, 2025.

International Collaboration and Relations



Maintaining robust international relations has continued to be a priority for the MFSA. The authority's representatives participated in over 150 international forums and held high-level meetings with global standard-setting organizations, including the European Banking Authority and the European Securities and Markets Authority. Locally, partnerships with the Financial Intelligence Analysis Unit (FIAU) and the Central Bank of Malta (CBM) have fostered a more harmonized approach to regulatory reporting, aimed at reducing administrative burdens, preventing financial crime, and mitigating systemic risks.

Vision for the Future



Kenneth Farrugia, Chairman of the MFSA, reflected on the successes of the past year, highlighting significant advancements in regulatory oversight, alignment with international best practices, and enhancement of consumer protection. He emphasized the authority's commitment to regulatory agility, operational resilience, and ensuring a fair, transparent, and future-oriented financial system.

To read the full MFSA Annual Report for 2024, visit www.mfsa.mt/annual-report-2024/.

About MFSA



The Malta Financial Services Authority (MFSA) serves as Malta's sole regulatory authority for financial services. For further details, visit www.mfsa.mt or contact their communications office at [email protected].

Topics Financial Services & Investing)

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