MFSA’s new corporate structures will be more impartial and independent, the authority’s CEO Joseph Cuscheri has said.
Referring to the creation of the Enforcement Decisions Committee, the CEO explained that it would be made up of people externally and acting independently of the Executive Committee.
He explained that, ‘This will create an impartial system which will prevent the authority from being judge, jury and executioner and will avoid having the decisions of the Authority challenged on that basis.’
Cuscheri made these comments during a MFSA meeting outlining the changes to Malta Financial Service Authority’s structures, priorities and improvements as part its Vision 2021.
He explained that the revisions to the structure were had been, ‘discussed with various international institutions and experts including the IMF,’ and had been developed to improve market confidence and to assure consumer interest.
‘Our strategic plan will also focus on the accountability of all market players to preserve the integrity and stability of the financial market and promote an environment conducive to sustainable growth. The changes in the way the MFSA operates coupled with a significant investment in technology, knowledge management and people are crucial to ensure Malta’s positioning amongst Europe’s top-tier financial services jurisdictions,’ he added.
Contributing to the discussion, MFSA’s Chairman Professor John Mamo explained that the authority’s changes would have key knock on affects for companies, encouraging them, ‘to be more vigilant in identifying risks of misconduct and in addressing these risks to avoid such occurrences … to provide further transparency and knowledge of who we are and what we do.’
Along with dealing with risk and misconduct, MFSA Chief Officer for Supervision, Marianne Scicluna, also explained that the authorities would prioritizing supervision on Governance, Risk and Compliance; Compliance with AML/CFT; Cross-Border Operations; Cyber Security and Retail Investor Protection.
Scicluna also explained that MFSA’s efforts on Anti-Money Laundering, explaining that, ‘as the Country’s recent National Risk Assessment highlighted, money laundering and terrorist financing represent a threat to the stability, profitability and safety of the financial services industry and of the country as whole.’