During a visit at the Malta Financial Services Authority, Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri announced that the Government was publishing a consultation document for the strengthening of the MFSA to take the financial services sector to a new level.
Parliamentary Secretary Silvio Schembri said that in such a dynamic financial services environment, time was ripe for MFSA to step up the game through a pragmatic risk based approach rather than a descriptive one, fostering more efficient processes and a more conductive environment for innovation.
He emphasized that this public consultation should lead to an authority which is reactive enough to address situations where regulations lag the developments of new products in the market. Parliamentary Secretary Silvio Schembri said that a strengthened MFSA should be well set to harness the industry in the design of new products like Fintech, Blockchain and other niches to tap.
“At the same time, the new MFSA needs to be vigilant to ensure that any new niches do not endanger the long-term stability of the sector and with it Malta’s long standing high reputation. The risk of allowing the industry to tap new niches may be contained if there is the right synergy between those willing to invest and the regulatory authority to create products that actually reduce such risks”, said Parliamentary Secretary Silvio Schembri.
Whilst thanking chairman Prof. Joe Bannister and his team for their work to strengthen the MFSA through the years, the Parliamentary Secretary reiterated that the government is committed to the continued development of the financial services sector and is publishing this Consultation Document to seek the views of all operators on MFSA. The consultation document can be downloaded online from www.opm.gov.mt and submissions will be received until the 15th of September 2017.