Former MFSA chairman Joe Bannister said positive results in the financial services sector showed Malta was a well-managed financial jurisdiction.

Writing in the MFSA’s annual report, Prof Bannister, who recently retired from the Authority, said financial services and insurance accounted for 90 per cent of Malta’s foreign investment.

More than 100 companies had transferred their domiciles to Malta, and six new financial institutions set up shop locally, taking the total to 48.

The MFSA said in its annual report that Malta’s financial services sector made up 11 per cent of the national economy in 2017.

Licence holders continued to increase and now number 2,180, with the numbers rising by 360 over the past three years.

Prof. Bannister said in the report employment numbers in the financial and related sectors continued to grow. This showed the underlying strength of financial companies and confirmed Malta’s status as an attractive and well-managed financial services location, Prof. Bannister said.

More than 100 firms transferred domiciles in 2017

Incoming MFSA CEO Joseph Cuschieri said the authority was investing “significant resources” to strengthen its due diligence processes at both the pre- and post-licensing stages, and that the financial regulator was keeping a keen eye on developments in the fintech, blockchain and other digital innovation spheres. 

The MFSA increased its headcount by 5.7 per cent last year, compared to 2016.

Overall, 53 people were hired by the MFSA and 35 people resigned. The annual turnover rate due to resignations stood at 10.5 per cent. According to the MFSA, this figure was in line with the industry average.

An internal audit found the need to review compensation packages, particularly at more senior levels, in order to remain competitive in the challenging financial services market scenario, the MFSA said.

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