Malta becoming significant home to funds

Malta is on the way to becoming a significant fund "domicile", Malta Financial Services Authority chairman Joe Bannister said yesterday.

Swiss fund managers have shown particular interest in the country and last year the MFSA issued six licenses to Swiss professional investor fund companies.

Locally based collective investment schemes increased from 60 in 2004 to 113 in 2005, Prof. Bannister said at a news conference which launched the authority's annual report.

Last year the authority issued licenses for three banks to start operating from Malta, including the Turkish Finansbank (Malta) Limited, which returned after surrendering its banking licence in 2002.

The authority's annual report, which was also presented to the MFSA Board of Governors, showed that two Canadian financial institutions were also granted a licence last year.

The number of local insurers increased from eight in 2004 to 12 last year, the report shows. The number of foreign insurers went down from 12 to 10 and insurance managers increased from four to six. There are four affiliated insurance companies, up from zero in 2004.

Asked what attracted foreign companies to Malta, Prof. Bannister pointed out that a survey carried out by the authority in Switzerland, the United Kingdom and Ireland showed that topmost on companies' wish list was accessibility to the regulator and the availability of trained staff.

The MFSA, he said, was trying to satisfy those needs.

The fact that Malta was now an EU member, as well as the English speaking capabilities of staff, have also helped the country's position, he said.

Last year the authority received 200 formal complaints, 33 of which concerning banking, 107 insurance and 60 about investment services.

Prof. Bannister expressed satisfaction that the number of complaints was in decline, indicating that consumers were becoming more educated. He pointed out the need for a register of complaints, which although not made public, would give companies a snapshot of the situation.

The authority's income last year was close to Lm4 million, up from under Lm3.5 million in 2004.

Although both staff costs and administrative expenses increased, the MFSA's surplus also increased, from Lm1.14 million in 2004 to Lm1.3 million last year.