MFSA published 2023 Annual Report
MFSA published 2023 Annual Report
The Malta Financial Services Authority (MFSA) has published its 2023 Annual Report, which highlights several key areas of success and progress.
Between 2022 and 2023, Malta's financial services sector witnessed a sturdy 11.8% growth, demonstrating its stability and contributing significantly to economic prosperity. In 2023, the MFSA increased its supervisory interactions by 50%, adopting a risk-based approach to focus on areas of greater concern. This increase underscores the Authority's commitment to effective supervision and resolution capabilities, aimed at protecting the financial system and preventing potential issues.
Driving Regulatory Innovation
Innovation has been a driving force behind the MFSA's regulatory effectiveness. The introduction of the Notified Professional Investor Fund (NPIF) framework has reduced regulatory complexity and operating costs, enhancing Malta's attractiveness as a fund jurisdiction. Additionally, the pioneering Virtual Financial Assets (VFA) Framework, which aligns closely with the European Union’s Markets in Crypto-Assets (MiCA) regulation, continues to position Malta at the forefront of digital finance.
Initiatives to Increase DORA Preparedness
In preparation for the upcoming Digital Operational Resilience Act (DORA) Regulation, which becomes effective in January 2025, the MFSA has been actively involved in outreach initiatives throughout 2023. These efforts focus on raising awareness among Authorized Persons and across the industry, including relevant associations and consultants. To keep Authorised Persons informed about DORA Regulation developments, the MFSA issued numerous Circulars on the topic.
Commitment to Sustainable Finance
As the MFSA moves forward, it remains committed to robust supervision, effective enforcement, consumer protection, and the promotion of sustainable finance as a core component of its regulatory framework. These efforts are designed to uphold Malta's reputation as a dynamic, reliable, and trustworthy financial services jurisdiction.The MFSA is proud of the progress made in 2023 and remains confident that, with the continued support of its stakeholders, it can navigate future challenges and opportunities. The Authority encourages active engagement from all parties as it works to ensure a bright and successful future for Malta's financial services sector. The 2023 Annual Report is a testament to the MFSA's dedication and hard work in maintaining high standards of regulation and fostering a resilient financial environment in Malta.