MFSA Malta Financial Services Authority

1. MFSA Malta Financial Services Authority

2. Total Company Registrations

3. Licensed Nominees/Corporate Trustees * Being phased out under the Trusts and Trustees Act

4. Investment Services Total Number of Domiciled Funds Funds Domiciled in Malta

5. Credit and Financial Institutions Total Licences

6. Insurance Business – Local Market

7. Total Managed Insurance Companies

8. Malta Critical Success Factors

9. 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

10. 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.

11. 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.

12. 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

13. Strategic Plan

14. 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;

15. Opportunities • Hedge funds administration • Actuarial services • Corporate governance • Compliance • Risk management • Financial engineering • Insurance & Reinsurance

16. 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,

17. 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.

18. 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.

19. 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

20. 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)

21. 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.

22. 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.

23. COMPETITIVE HIGH QUALITY SKILLS STEADFAST REGULATION AGILITY IN THE MARKET MALTA- the culture of getting things done