Looking back, we cannot but feel a sense of achievement and satisfaction at what we have managed to do in this relatively short period of time. We have all worked hard to set up Malta as an international financial centre of repute and today we can say that Malta is firmly placed on the map of the global financial services industry. Way back in 1994, at a time when EU accession was still a future issue, one of the government’s top priorities was to ensure that the programme of wholesale financial reforms that was then being undertaken was fully convergent with EU best practice. We introduced a progressive financial legislation package designed to support the needs of a modern, international financial centre because we strongly believed, even then, that a well developed financial services industry, working in accordance with the highest international standards, would be a critical component in the development process of our economy.  The key targets were improved business competitiveness, streamlined procedures, reduced bureaucracy and the implementation of regulatory policies that encourage growth and innovation. These objectives, sustained by a constant upgrading of both the technological base and the human resource skills, were singled out as the essential elements needed to project our financial services industry into the 21st century.

During these past years we have continued to build on what we saw as our major competitive strengths, a well-trained and motivated workforce, a reasonable cost environment, the use of the English language and an advantageous tax regime backed up by a network of over forty double taxation agreements. This Government is, of course, fully aware of the critical importance of the tax element in any promotion strategy undertaken by the financial services sector and the recent amendments to local tax legislation, which were the result of lengthy discussions with the EU over a period of almost three years, confirm our firm commitment to a full imputation system of taxation. We strongly believe that the agreement reached with the EU on this issue will effectively strengthen the competitive position of our financial services industry.

Competition is really what it’s all about. When Malta joined the EU in 2004, the Maltese economy, including its financial services industry, was projected into a market made up of 25 member states with a combined population of over 500 million, a market with its own laws, regulations and directives. New technologies like internet and e-trading are opening new business opportunities, making it easier for newcomers to enter the market.  New technologies, new economic realities are creating the platform for more and more competitive forces to come into play not only within the European Union itself but on a global dimension. Against this background, it is vital that our companies- including those operating in the financial services sector- get all the support they need to enable them to go out and get new business for Malta.

And this is where Finance Malta can help.  I think you will agree that, in spite of our achievements, we still need to have more focused and better coordinated marketing and promotion strategies targeted to achieve our business objectives. We need to agree on a common roadmap aimed at promoting Malta internationally as an instantly recognizable brand denoting excellence in financial services.

With the setting up of this organization, we have now filled what has been widely seen as an institutional gap. The main objectives of Finance Malta will be to promote Malta’s financial services brand, both within, as well as outside, our shores driven by a core belief that only through a process of continuous innovation can we maintain our competitive edge in the global market place. Finance Malta will achieve these objectives by bringing together and harnessing the resources of the industry, the regulator and Government to ensure that Malta maintains a modern and effective legal, regulatory and fiscal framework in which the financial sector can continue to grow.

The Deed we have just signed formally establishes Finance Malta as an autonomous, non-profit making Foundation with a distinct legal personality having as its main objective the promotion of Malta as a quality financial business centre. I am very glad to have roped in a very experienced and distinguished Board of Governors for Finance Malta. The Board will be made up of four Governors representing the Government, namely Mr Joe Zammit Tabona, in his capacity as Chairman of the Stock Exchange who will also act as the first Chairman of FinanceMalta, Profs Joe Bannister and Dr Michael Xuereb from MFSA and Mr Alan Caruana from the Ministry of Finance. The other four Governors come from the private sector. Mr Kenneth Farrugia will be representing the Malta Investment Funds Association, the Malta Association of Fund Managers and Administrators and the College of Stockbroking Firms, Mr Tonio Depasquale representing the Malta Bankers Association, Mr David Curmi representing the Malta Insurance Association and the Association of Insurance Brokers, and Mr Kevin Valenzia who will be representing the Institute of Financial Services Practitioners. The Government of Malta will be endowing the Foundation with annual funding, whilst the financial industry, at its own expense, will be placing two employees at the disposal of FinanceMalta. I would like to emphasis that the basis of this agreement is the partnership arrangement being forged by the public and private sector that will be jointly financing the initiatives to be undertaken by FinanceMalta beyond the initial funding placed by both parties.  The Malta Stock Exchange will be hosting this foundation within its premises.

I would like to close by thanking all those who were involved in any way in the setting up of Finance Malta and particularly the Financial Services Consultation Council, the Malta Financial Services Authority, and the Malta Stock Exchange.

Thank you.

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