MFSA is aiming to become self-funded by 2024

The Malta Financial Services Authority is aiming to reform its financing model in order to become self-funded by 2024.

The financial regulator published its strategic plan 2019 – 2021 on Friday, highlighting its supervisory priorities and the key priority areas which will be addressed in order to achieve Vision by 2021.

In a statement on Friday, the MFSA said that it is developing a new 5-year business plan which envisages a reform in its financing model. The financing model is aimed to make the authority self-funded by 2024. The reform includes the introduction of ancillary fees to cover services currently provided free of charge, as well as a revision in authorisation and supervisory fees. The MFSA explained that the revenue model will reflect the real cost of supervision based on the risk profile/assessment of each sector supervised.

The MFSA said that the plan has been developed in the context of challenges faced by local and international financial markets, such as the labour supply and new emerging risks emanating from the drive towards financial innovation and technology. The plan also takes into account international regulatory developments and instances of misconduct on both a local and global level, which may have negatively impacted the trust in the market worldwide, the authority said.