Like all countries, Malta also has an authority overseeing its economic environment’s functioning. Traders’ interest is of paramount importance for all developed and developing nations. If a trader trusts the financial institutions, it brings more investment and opportunities for the nation.
To achieve the same, Malta Financial Service Authority (MFSA) emerged. There is much more to this authority about which we shall tell you. Let us first begin with ‘what is MFSA?’
What is Malta Financial Service Authority (MFSA)?
The MFSA does the job of regulating the movement of finances in Malta. It has a much wider focus than regulating the Malta stock market. Even the Central Bank of Malta and Malta Financial Service Center fall within the scope of MFSA.
This authority regulates all banking, insurance, investment, pension, and financial companies. It also checks the working of the Malta stock exchange to protect investors from scams.
Thus, it is one of the vital bodies in Malta on which the fate of its economy is dependent. Let us further delve into the history of MFSA.
Malta Financial Service Authority history
The authority came into being on July 23, 2002. This organization is the successor to the Malta Financial Services Center.
The setting up of this authority brought much-needed reforms in the nation’s economic environment. Since then, it has worked to bring changes in the transparency laws to build better investor confidence.
The authority has various missions and visions to achieve. These missions guide the purpose of its being and its modus operandi.
Its powers are not limited to only framing new laws and regulations. But, it also oversees, regulates, and supervises Malta’s financial sector.
Let us tell you more about the missions of MFSA.
Mission and vision of the MFSA
The motivating drive behind the working of MFSA is these five core principles. They also aim to build these five core values in Malta’s economic environment.
Integrity: Integrity is the most crucial part of their mission. It acts as a guiding force behind their actions. Thus, they aim to make integrity a part of the country’s financial system. Ensuring that the companies and businesses operate transparently helps them achieve it.
Trustworthiness: Where there is trust, there is an investment. Thus, MFSA makes the utmost effort to regulate financial institutions. It gives out licenses only to suitable brokers. The regulations and licenses maintain the investors’ trust in their work.
Dependability: There is no substitute for reliability for traders and other investors. It can be difficult for traders to invest money in something they can’t trust. Thus, it aims at making all brokers and financial institutions dependable for investors.
Independence: Traders can rely on the working of MFSA because it is free of any external influence.
Excellence: The authority aims at bringing reforms to Malta’s financial sector. The reforms brought in by MSFA are in line with the global levels. Thus, it plays a crucial part in maintaining Malta’s image internationally. The digitization of investment and trading measures by the authority ensures that traders look to the Malta stock exchange for investing.
Thus, MFSA is crucial for Malta, just like any other top regulating authority. The financial markets’ proper functioning lies in this authority’s hands.