MFSA newsletter
Future skills requirements in financial services sector The Malta Financial Services Authority next month will be publishing a detailed report on the results of the skills survey launched earlier in the year. The skills survey was influenced by the...
Future skills requirements in financial services sector
The Malta Financial Services Authority next month will be publishing a detailed report on the results of the skills survey launched earlier in the year. The skills survey was influenced by the need to measure skills deficiencies in the financial services sector and to provide a sound basis for the planning of careers and training in the sector. It covered the incidence of vacancies, skill gaps and the availability of training for employees within the sector.
The report will highlight a number of skills issues which need to be addressed in order to ensure the continued competitiveness of the financial services industry. In particular, the report shows that currently the most pressing needs relate to a number of particular skills in the insurance sub-sector. Recruitment difficulties are also being experienced when it comes to accountants specialised in a number of fields across the financial sector.
The overall picture from the survey shows that 45 per cent of companies participating in the survey have reported the incidence of at least one current vacancy, and 54 per cent of vacancies have been reported as being more or less hard to fill. The overall results also show that companies within the sector in Malta have relatively fully-proficient employees.
While it is understandable that as the sector develops, new types of activity would call for certain skills that are new to Malta, the situation requires attention so that new skills are better anticipated and catered for in the future. At the same time any specific areas that have fallen behind, especially with respect to traditional skills, should be given the necessary attention and resources should be allocated to address these shortages.
In response to the survey results, the MFSA has prepared a set of recommendations intended to ensure a flow of skills within the industry.
The report, together with recommendations, is being passed on to the Education Consultation Council for further amplification and implementation. The report is also being published to enable stakeholders to evaluate the findings and plan ahead and come forward with any issues or problems detected in the market, thereby maintaining an open channel of communication on issues related to future skills availability.
The shortages indicated in the study need to be addressed immediately to protect the continued development of the sector. By taking the right action now to protect the challenges raised by this study, Malta can enhance its reputation as a financial services centre with the right environment for the industry.
New investment guide for consumers
The MFSA has published a guide for retail investors on the new European Directive for financial markets: the Markets in Financial Instruments Directive (MiFID). The guide, largely based on that published by the Committee of European Securities Regulators (CESR), aims to explain, in clear and straightforward language, the new safeguards that retail consumers will benefit from when buying a range of financial services following the introduction of this legislation across Europe.
The MiFID, which came into effect last November 1, is a key legislative instrument which establishes how investment firms and the services they provide are regulated.
One of its core principles is that firms wishing to provide services to retail investors, must act professionally, provide fair information on financial products, and take into account the individual circumstances of each consumer.
The MiFID aims to harmonise investor protection throughout Europe and increase consumers' confidence that the products they are being sold are actually appropriate for their needs.
The version of the guide issued by the MFSA, available in English and Maltese, includes a glossary of some important terms in the guide, together with others which consumers may come across when investing.
An electronic version of the guide is available for download from www.mfsa.com. mt/consumer. A limited number of copies will be made available on request free of charge through licensed financial entities and the MFSA from next month.
Captive insurance association in Luxembourg
The Foundation of European Captive Insurance and Reinsurance Owners' Association (ECIROA) was set up in Luxembourg recently.
The new association has as its object the protection and support of the captive industry as well as representation of its members in discussions with official, regulatory bodies.
The association is aimed at being a forum for captive owners where these can exchange experience across border, business sector or line of insurance business.
Membership is open to any European company owning a captive. Member companies are currently major European companies from a variety of industries and business sectors with seats in Germany, the Netherlands and Denmark representing well over 30 captive companies. The captives are located primarily in Luxembourg, Ireland and Malta.
Upcoming financial services training programmes
Come September, the MFSA together with members of the Education Council will again be providing a series of training programmes for actual and prospective employees in the financial services industry.
The programmes will range from short awareness and professional development courses to more extensive programmes leading to the acquisition of qualifications that will be recognised by the MFSA for competence purposes. The latter programmes will provide an opportunity for participants to specialise in specific discipline, meeting demands for expertise that arise within the financial services sector from time to time.
The programme leading to a diploma in financial services operations and compliance is being re-run with the collaboration of Enterprise LSE of the London School of Economics.
A new course leading to a diploma in corporate finance treasury and portfolio management will also commence in October.
This course was set up as a joint venture with the University of Reading and will include a combination of online and classroom tuition.
Further details of these programmes, and others,can be obtained from the MFSA website or from the websites of the respective partner institutions.
Comparative tables go interactive
The comparative tables for tariffs and charges in the financial services sector, published by the MFSA, have become more user-friendly.
The authority has totally revamped the way it has produced such information for consumers by providing access to an online survey of tariffs and charges. Consumers are now able to compare the tariffs of any two financial entities in respect of the product/service selected. The MFSA has also produced general information about the respective products or services - such information is available by clicking on a link at the top of the comparative table generated.
Consumers are now able to compare tariffs and charges for the following: credit cards, debit cards, savings and current accounts, paying and receiving money by cheque, transferring money from one bank to another, and loans and advances.
The publication of this survey is in line with the authority's function to promote the general interests and legitimate expectations of consumers of financial services, and to promote fair competition practices and consumer choice in financial services (Section 4 of the MFSA Act).
From time to time the MFSA will be updating the survey with additional financial products and services.
For more information consumers may contact the MFSA's consumer complaints unit on freephone 8007 4924 or by e-mail consumerinfo@mfsa.com.mt.
Licences issued in August
(i) Collective investment scheme licences
Professional investor funds
• Licence issued to Sabius SICAV plc in respect of one sub-fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to Spectrum Fund SICAV in respect of two sub-funds. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to Altma Funds SICAV plc in respect of four sub-funds.
Surrender of licence
• Collective investment scheme licence surrendered by La Valette Funds SICAV plc in respect of Mediterranean Rim Fund.
(ii) Insurance
• Licence issued to Nissan International Insurance Ltd to carry on the business of insurance in two classes of general business.
Extension of licence
• Licence issued to Palatina Insurance Ltd to carry on business of affiliated reinsurance has been extended to cover motor vehicle liability.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators.
Full releases can be accessed from the Warnings for Investors section in the MFSA website.
The Malta Financial Services Authority next month will be publishing a detailed report on the results of the skills survey launched earlier in the year. The skills survey was influenced by the need to measure skills deficiencies in the financial services sector and to provide a sound basis for the planning of careers and training in the sector. It covered the incidence of vacancies, skill gaps and the availability of training for employees within the sector.
The report will highlight a number of skills issues which need to be addressed in order to ensure the continued competitiveness of the financial services industry. In particular, the report shows that currently the most pressing needs relate to a number of particular skills in the insurance sub-sector. Recruitment difficulties are also being experienced when it comes to accountants specialised in a number of fields across the financial sector.
The overall picture from the survey shows that 45 per cent of companies participating in the survey have reported the incidence of at least one current vacancy, and 54 per cent of vacancies have been reported as being more or less hard to fill. The overall results also show that companies within the sector in Malta have relatively fully-proficient employees.
While it is understandable that as the sector develops, new types of activity would call for certain skills that are new to Malta, the situation requires attention so that new skills are better anticipated and catered for in the future. At the same time any specific areas that have fallen behind, especially with respect to traditional skills, should be given the necessary attention and resources should be allocated to address these shortages.
In response to the survey results, the MFSA has prepared a set of recommendations intended to ensure a flow of skills within the industry.
The report, together with recommendations, is being passed on to the Education Consultation Council for further amplification and implementation. The report is also being published to enable stakeholders to evaluate the findings and plan ahead and come forward with any issues or problems detected in the market, thereby maintaining an open channel of communication on issues related to future skills availability.
The shortages indicated in the study need to be addressed immediately to protect the continued development of the sector. By taking the right action now to protect the challenges raised by this study, Malta can enhance its reputation as a financial services centre with the right environment for the industry.
New investment guide for consumers
The MFSA has published a guide for retail investors on the new European Directive for financial markets: the Markets in Financial Instruments Directive (MiFID). The guide, largely based on that published by the Committee of European Securities Regulators (CESR), aims to explain, in clear and straightforward language, the new safeguards that retail consumers will benefit from when buying a range of financial services following the introduction of this legislation across Europe.
The MiFID, which came into effect last November 1, is a key legislative instrument which establishes how investment firms and the services they provide are regulated.
One of its core principles is that firms wishing to provide services to retail investors, must act professionally, provide fair information on financial products, and take into account the individual circumstances of each consumer.
The MiFID aims to harmonise investor protection throughout Europe and increase consumers' confidence that the products they are being sold are actually appropriate for their needs.
The version of the guide issued by the MFSA, available in English and Maltese, includes a glossary of some important terms in the guide, together with others which consumers may come across when investing.
An electronic version of the guide is available for download from www.mfsa.com. mt/consumer. A limited number of copies will be made available on request free of charge through licensed financial entities and the MFSA from next month.
Captive insurance association in Luxembourg
The Foundation of European Captive Insurance and Reinsurance Owners' Association (ECIROA) was set up in Luxembourg recently.
The new association has as its object the protection and support of the captive industry as well as representation of its members in discussions with official, regulatory bodies.
The association is aimed at being a forum for captive owners where these can exchange experience across border, business sector or line of insurance business.
Membership is open to any European company owning a captive. Member companies are currently major European companies from a variety of industries and business sectors with seats in Germany, the Netherlands and Denmark representing well over 30 captive companies. The captives are located primarily in Luxembourg, Ireland and Malta.
Upcoming financial services training programmes
Come September, the MFSA together with members of the Education Council will again be providing a series of training programmes for actual and prospective employees in the financial services industry.
The programmes will range from short awareness and professional development courses to more extensive programmes leading to the acquisition of qualifications that will be recognised by the MFSA for competence purposes. The latter programmes will provide an opportunity for participants to specialise in specific discipline, meeting demands for expertise that arise within the financial services sector from time to time.
The programme leading to a diploma in financial services operations and compliance is being re-run with the collaboration of Enterprise LSE of the London School of Economics.
A new course leading to a diploma in corporate finance treasury and portfolio management will also commence in October.
This course was set up as a joint venture with the University of Reading and will include a combination of online and classroom tuition.
Further details of these programmes, and others,can be obtained from the MFSA website or from the websites of the respective partner institutions.
Comparative tables go interactive
The comparative tables for tariffs and charges in the financial services sector, published by the MFSA, have become more user-friendly.
The authority has totally revamped the way it has produced such information for consumers by providing access to an online survey of tariffs and charges. Consumers are now able to compare the tariffs of any two financial entities in respect of the product/service selected. The MFSA has also produced general information about the respective products or services - such information is available by clicking on a link at the top of the comparative table generated.
Consumers are now able to compare tariffs and charges for the following: credit cards, debit cards, savings and current accounts, paying and receiving money by cheque, transferring money from one bank to another, and loans and advances.
The publication of this survey is in line with the authority's function to promote the general interests and legitimate expectations of consumers of financial services, and to promote fair competition practices and consumer choice in financial services (Section 4 of the MFSA Act).
From time to time the MFSA will be updating the survey with additional financial products and services.
For more information consumers may contact the MFSA's consumer complaints unit on freephone 8007 4924 or by e-mail consumerinfo@mfsa.com.mt.
Licences issued in August
(i) Collective investment scheme licences
Professional investor funds
• Licence issued to Sabius SICAV plc in respect of one sub-fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to Spectrum Fund SICAV in respect of two sub-funds. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to Altma Funds SICAV plc in respect of four sub-funds.
Surrender of licence
• Collective investment scheme licence surrendered by La Valette Funds SICAV plc in respect of Mediterranean Rim Fund.
(ii) Insurance
• Licence issued to Nissan International Insurance Ltd to carry on the business of insurance in two classes of general business.
Extension of licence
• Licence issued to Palatina Insurance Ltd to carry on business of affiliated reinsurance has been extended to cover motor vehicle liability.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators.
Full releases can be accessed from the Warnings for Investors section in the MFSA website.