Keeping Tabs on Market Perception and Knowledge about Investments

by Bank of Valletta
23rd November 2023
In Q4 2021, the MFSA published the Asset Management Strategy Discussion Paper – a consultation document seeking stakeholders’ feedback on various initiatives aimed at boosting this important sector.
The need for a specific strategy addressing the asset management sector became evident as a result of several recent economic, market, and regulatory developments. In the past two to three years, these have negatively impacted both the continued operations of a number of existing funds and managers domiciled in Malta, as well as the further growth of additional fund vehicles and asset managers, thereby impinging on the strong position that Malta had built in this sector.
Results from a statistical analysis carried out with regards to a degree of attrition in the growth of locally domiciled asset managers and funds have substantiated further the need for the MFSA to put strategic focus on this sector and to develop a valid plan to address the deficiencies identified.
Taking into account the above engagements, the draft Asset Management Strategy was developed and issued for consultation, seeking interested parties’ feedback on the various initiatives aimed at addressing the criticalities that this sector is facing. While a number of policy initiatives have already been launched, the respective workstreams shall be further boosted by feedback obtained following the publication of this Consultation Document.
The proposed initiatives forming part of the Asset Management Strategy have been classified into four main Strategic Pillars:
With this Strategy, the MFSA not only intends to ensure continued stability and soundness of the sector through effective regulation, but also aims at facilitating business by means of streamlined, pragmatic and dynamic policymaking. The Strategy also encapsulates a holistic approach to asset management, ensuring a stronger business relationship with existing fund managers, as well as greater industry and regulatory outreach and collaboration with local key stakeholders and institutions.
The consultation is open to the public until 17 December 2021. Industry participants and interested parties are invited to send their responses via email to AssetManagementStrategy@mfsa.mt.