First Results of MFSAC Strategy Imminent. An interview with Joseph Zammit Tabona, Chairman, Malta Financial Services Advisory Council (MFSAC)
FIRST RESULTS OF MFSAC STRATEGY IMMINENT
It has been 18 months since the Malta Financial Services Advisory Council launched the national strategy for financial services, listing over 175 action points. A considerable amount of work has been done, although chairman Joseph Zammit Tabona admits that some of it might not be visible… yet.
A number of projects are now in their final stages and the coming months will see a several developments made public.
Indeed, some projects require complex approaches while others require careful study before being launched, to ensure that the optimal solution is found, Mr Zammit Tabona explained.
The MFSAC Strategy identified a number of new areas of activity for the financial services sector, one of which is aircraft leasing. Mr Zammit Tabona said that one of the Big Four firms had prepared a 230-page report on Malta’s attractiveness in this space based on current legislative framework relative to other jurisdictions that have been successful in this space. The overall conclusion is that Malta’s offer is actually competitive and we have what it takes to attract the first few companies. There are already three well-established jurisdictions, however, one of these is already outsourcing a considerable amount of work to Maltese companies.
“This means that there is actually a lot of expertise available locally, and although we have no intention of challenging the established jurisdictions, we should try to attract a few big companies, which would help to put our name out there,” he said.
The report included a list of seven priority initiatives and Mr Zammit Tabona believes that four of these could be in place by the end of the year. These involve other entities, such as the Malta Tax and Customs Administration (MTCA), and meetings are being held to push this agenda forward.
The MFSAC has also identified the need for a National Payment Hub especially given Malta’s objective of attracting Fintech startups, established payments providers and Financial Institutions. Discussions are underway to address this requirement and to build on existing local capabilities to make this happen and make it open for all comers,
“It is clear that there is a lot of potential here. The Payment Hub would allow us to have considerably more oversight and a better analysis of economic activity,” he said.
Not all the projects are so large. For example, another of the action points involves just one clause of the Companies Act, affecting important legal definitions. Mr Zammit Tabona said that work on this was being handled by the Malta Business Registry (MBR), and completion of the task was imminent.
Another two action points which should be ready in time to be included in the Government Budget this autumn relate to another sector identified for future growth: Family Offices. One is for a clear legal definition of Family Offices to be determined, while the other involves raising the current limit of €750,000 for Professional Investor Funds to several million, to better reflect the sums usually handled by Family Offices.
The Another MFSAC initiative is that of a system for Centralised Identity Management, a project that also falls under the remit of the MBR. This would greatly reduce the tiresome burden of having multiple agencies and banks all requesting similar due-diligence documents. The project currently being finalised for public procurement. Indeed, harmonised reporting should also be in place by next year and will in fact be piloted with Financial Institutions in the 1st quarter 2025, thanks to the synchronisation of data systems at the Financial Intelligence Analysis Unit and the MFSA. Digitalisation will also be in place by next year help to streamline online reporting to the MBR, making it easier to submit, validate and update company records.
Other areas have been finalised and are merely awaiting official enactment, such as developments relating to capital markets, insurance and wealth management, while others like pensions are now in the Government’s hands for decisions on the various options identified.
Apart from the initiatives identified by sector, there are also projects which cut across them all such as education and human resources. The Council will have the opportunity to piggyback on an OECD methodology being used by the National Skills Council to effectively evaluate the skills set required for the future Financial Services workforce. In addition, a number of tangible proposals have already been made to Identità in regard to the situation with highly qualified TCNs.
The concept of sustainable finance is another cross-cutting initiative which will look at opportunities such as the Blue Economy, film and other sectors, as is a review of a number of double taxation treaties which would reflect the new activities being promoted.
“We are also bringing together delegates from 13 legal and accounting firms to identify where Malta can create centres of excellence,” Mr Zammit Tabona said.
“A tremendous amount of work is being done and the collaborative approach is paying off. The knowledge that some of the initiatives will soon be finalised is very encouraging and will ensure that momentum will not flag.”
For further information on the MFSAC Strategy:
• FinTech podcast with Ronald Attard
• MiCA podcast with Camille Pepos
• Financial Literacy podcast with Sarah Pulis (MFSA)
• Insurance and Pensions interview with Matthew Bianchi
• National Skills Survey interview with Jeffrey Pullicino Orlando