Transcript Slide 1

MFSA
Malta Financial Services Authority
Total Company Registrations
3000
2825
2479
2500
2232
2000
2,347
1886
1673
1705
1500
1000
500
0
2000
2002
2004
2006*
Licensed Nominees/Corporate Trustees
2004
2005
Licenses
issued Jan
– Dec06
Total
Licences
Dec 06
Nominees *
38
37
0
36
Licensed Nominees *
80
32
0
22
Trusts registered in
terms of the Trusts
Act, 1988 *
193
185
0
175
-
57
13
70
Trustees
*
Being phased out under the Trusts and Trustees Act
Investment Services
Total Number of Domiciled Funds
Funds Domiciled in Malta
Category
2004
2005
Licences
issued
Jan - Dec
Total
Licences as
at end Dec
2006
Schemes
-21
-31
15
47
Retail Funds
50
52
28
76
PIFs
10
61
29
91
Total
60
113
57
167
Credit and Financial Institutions
Total Licences
Deposit
Money
Banks
Banks carrying
out international
business
Financial
Institutions
Representative
Offices (Banks)
2004
8
8
13
1
2005
8
11
13
1
Licences
Issued
Jan – Nov
06
0
0
0
0
Total
Licences
as at Dec
2006
7
11
13
1
Insurance Business – Local Market
2004
2005
Jan –
Dec 06
Total Licenses
Dec 06
Local Insurers (Companies
carrying on business in
Malta)
8
8
0
7
Local Insurers (Protected
Cell Companies)
0
0
0
1
12
10
0
3
Insurance Managers
2
6
3
9
Agents of: Local Insurers
11
10
0
9
14
12
0
12
Brokers – Companies
24
24
0
23
Brokers – Individuals
39
39
15
54
564
548
12
567
Foreign Insurers*
Foreign Insurers
Tied Insurance
Intermediaries
Total Managed Insurance Companies
2004
2005
Licenses
issued Jan –
Dec 06
Total Licenses
Dec 2006
Affiliated
0
4
1
5
General
0
3
4
7
Life
0
0
2
2
Composite
Reinsurance
0
1
0
1
Malta
Critical Success Factors
Critical Success Factors
 Well educated/low cost pool of labour
 Inexpensive and modern office developments with
capacity
 Good telecommunications infrastructure
 Very competitive tax regime
 Flexible legal and regulatory environment
 English is the spoken and written language of business
Human Resources
 Multilingual community - English and Italian spoken
fluently, French, Spanish, German and Arabic also
spoken by a substantial number of the population;
 Free market for labour;
 Availability of multilingual graduates in disciplines
related to financial services;
 Availability of multilingual administrative and clerical
staff.
Legal Services
 Malta is a civil law jurisdiction – derived from Roman Law
and Napoleonic Codes, however, under the British rule
(1800 – 1964) Malta enacting business legislation (ex.
Company law, financial law, public law) based on English
law principles. The underlying principle is that commercial
usage and practice overrides conflict with Maltese Civil
Code where commercial matters are concerned.
 Legal framework is therefore flexible, versatile and able to
relate to different legal systems.
 Legal community is well established with many
practitioners obtaining further training overseas and most
firms form part of international legal networks.
Accounting Services
 IFRS – International Accounting Standards
applicable since 1997
 Major international accountancy firms
BDO, Deloitte & Touche, Ernst & Young,
Grant Thornton, KPMG, PKF, PWC and
others operate in Malta
Strategic Plan
Opportunities
 The main opportunities identified are for:

Insurance and re-insurance business
particularly for captive companies

Registration of funds and the provision of
funds servicing such as administration;

Management of global/regional banking
products such as loan books etc;

Management of Pension Schemes and
Trusts;
Opportunities
 Hedge funds administration
 Actuarial services
 Corporate governance
 Compliance
 Risk management
 Financial engineering
 Insurance & Reinsurance
Opportunities
In detail we see the following positions coming on stream in
the future:
 qualified fund accountant,
 fund administrator,
 pension administrator,
 claims handler,
 compliance,
 fund manager,
 financial engineer,
 financial analyst,
Opportunities
In detail we see the following positions coming on stream in
the future:
 risk manager,
 risk analyst actuary,
 underwriter,
 auditor,
 accountant,
 tax expert,
 legal expert,
 experienced investment funds professional, and
 senior bankers ……..among others.
Objectives of the Plan
Objective 1

Network with other organizations in order to maximize the
effectiveness of the regulatory regime and the management
activities.
Objective 2

Operate risk based regulatory practices to better anticipate
threats which may potentially harm companies and ultimately
consumers.
Objective 3

Continuously upgrade technology to enhance the operational
effectiveness and to improve public access to Registry of
Companies and other information.
Objective 4

Sustaining and improving organizational excellence through
continuous staff training.
Education
Our people are our greatest intellectual capital
 Strong commitment to high standards of education - based
on the UK system - people are Malta’s prime asset. The
total number of graduates in Malta is 31,341 which is 7.8%
of the Maltese population

8,000 students at the University of Malta - large numbers
graduate in law, economics, management, accountancy
etc and many with specialist IT training, plus numerous
vocational training programmes
 Many professionals and graduates obtain postgraduate
training and work experience in the European Union
particularly the UK
Educational Institutions
 Malta College for Arts, Science & Technology
 Malta international Training centre
 Institute of Directors
 Institute for Financial Services
 Institute for Legal Services
 Institute for financial Services practitioners
 STEP (Trusts and Trustee training)
Global Challenges
 the exponential change in the scale of
globalisation;
 the Malta cost base must not increase, and
 competitors are emulating our low rate of tax.
Challenges
 changing business models arising from advances in
technology and telecommunications and the impact of
globalisation;
 the fact that the European market is gradually becoming
more integrated partially driven by EU initiatives such as
the Financial Services Action Plan;
 the tax environment which is still very favourable although
other jurisdictions are trying to emulate Malta in this
respect and this presents challenges for particular parts of
the financial sector;
 Malta has cost advantages over many international
financial centres but the cost of skilled labour and
property has increased relative to other markets in recent
years; and
 other countries/regions have “upped their game”
considerably in terms of marketing their attractiveness.
COMPETITIVE HIGH QUALITY SKILLS
STEADFAST REGULATION
AGILITY IN THE MARKET
MALTA - the culture of getting things done