Financial services sector employs over 17,000 workers in 2022

The financial services industry in Malta has evolved into a a thriving, indispensable part of the national economy, with the number of people employed in the sector in 2022 surpassing 17,000, an increase of 26 per cent from 2021.

The Malta Financial Services Authority’s (MFSA) annual report and financial statement for 2022 reveal positive momentum in the financial services sector, as its gross added value (GVA) increased to €1.178 billion in 2022, an increase of 4.3 per cent over the previous year.

This growth was coupled with an increase in applications that the MFSA has received in 2022, with some sectors such as the admissibility to listing of securities, increasing by 70 per cent.

Throughout 2022, it received 355 applications in total across all sectors, 24 per cent of which were withdrawn or refused.

It also conducted 674 supervisory interactions, which encompassed a range of onsite and offsite reviews. These included 364 meetings, six Supervisory Review and Evaluation Processes, 217 inspections, 76 thematic reviews, and 11 mystery shopping exercises. 84 per cent of supervisory interactions had an AML/CFT element.

It also further enhanced its supervisory oversight to include corporate service providers (CSPs) but also introduced two new functions specifically dedicated to overseeing capital markets, and trustees and CSPs.

The MFSA’s chairperson Jesmond Gatt, stated, “The results obtained during the year under review reflect the commitment of Malta’s lawmakers and the jurisdiction to support the financial services industry. The MFSA is committed to being an enabler of sustainable, technology-enabled financial innovation within the sector.”

During the year in question, a total of 44 enforcement actions were taken, amounting to €147,445 in penalties.

In 2022 it successfully completed a complex IT infrastructure architecture redesign and upgrade project to significantly improve future scalability, operational resilience, and disaster recovery response times.

The MFSA’s newly appointed CEO, Kenneth Farrugia, added “I am both humbled and excited to have taken on the role of CEO at the MFSA. Looking ahead, the MFSA is steadfast in maintaining high standards, protecting consumers, and enhancing investor confidence.”