The MFSA’s 2024 Annual Report outlines a year of measured progress and forward planning across Malta’s financial services sector. With a clear focus on innovation, market participation and regulatory modernisation, the Authority’s work reflects a broader shift toward a more accessible and growth-oriented financial system.
A Regulator Positioned for Long-Term Value
In 2024, the MFSA advanced its transition to an outcomes-based supervisory model, designed to place greater weight on how financial institutions deliver value and manage risk in practice. Alongside this, new investments in data systems and digital tools are set to simplify regulatory interactions and improve market oversight. This shift is not just procedural, it reflects a deeper cultural change within the Authority, prioritising effectiveness, clarity, and dialogue with industry.
Spotlight on Digital Finance and MiCA Implementation
The report explains how, throughout 2024, the regulator actively pursued the shaping and implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA). With the regulation now in force, the MFSA has begun engaging with Virtual Financial Asset (VFA) service providers on transition plans and authorisation requirements under MiCA. Post 2024, the MFSA issued its first batch of licences under MiCA.
The Authority is also strengthening its regulatory engagement with Electronic Money Institutions (EMIs) and Payment Service Providers (PSPs). These sectors are not only expanding in Malta but are increasingly central to EU-level initiatives around open banking, instant payments, and digital operational resilience.
To support this growth, the MFSA has committed to modernising and beefing up its supervisory approach for non-bank financial institutions, one that encourages innovation while ensuring responsible market participation.
Developments Across Capital Markets and Fund Structures
The MFSA’s work throughout 2024 included reforms aimed at enhancing the quality and efficiency of Malta’s capital markets. These include:
- A new Sponsors Framework to improve listing standards and timelines.
- Progress on frameworks for Self-Managed Notified Professional Investor Funds (SM-NPIFs) and Special Limited Partnership Funds. Legislative changes were announced and came into force in 2025.
Developments in Trustees and Company Service Providers
The Authority also continued to strengthen the regulatory framework for Trustees and Company Service Providers (CSPs). In 2024, this included:
- Updates to the CSP Rulebook, applying a more proportionate approach based on the size and activity of the service provider.
- Enhancements to the Trusts Ultimate Beneficial Ownership Register (TUBOR), including automated validation checks and new functionality for discrepancy reporting.
- A thematic review of MLRO arrangements in CSPs, which informed guidance on governance structures, internal controls and time allocation.
These enhancements reflect the MFSA’s commitment to increasing transparency and regulatory consistency across all supervised sectors.
A Sector That Continues to Grow
Financial services accounted for 8.2% of Malta’s total real GVA in 2024. The sector also saw continued growth in employment, with the financial workforce expanding by over 20% from 2020. Notably, the MFSA has reinforced its focus on financial inclusion, particularly for SMEs and retail operators that continue to face barriers when accessing essential financial services. This will remain a point of attention as new digital entrants reshape service delivery models across the EU.
Looking Ahead to 2025
The MFSA’s forward-looking priorities include:
- Continuing the smooth rollout of MiCA and DORA across in-scope entities.
- Strengthening its interface with EMIs, PSPs and FinTech innovators.
- Driving market diversification and deeper engagement across the economy.
- Maintaining investor and consumer confidence through better communication and education.
In a year marked by legislative milestones, digital transition and deeper EU alignment, the MFSA’s focus remains clear: fostering a financial services sector that is well-regulated, competitive, and open to the future.
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