Malta’s financial services overhaul reaches two-thirds completion, MFSAC reports

Malta’s multi-year effort to reposition itself as a specialised financial services jurisdiction has reached a key milestone, with 66 per cent of its strategic projects now completed or in progress, according to an update issued by the Malta Financial Services Advisory Council (MFSAC).

The strategy – unveiled in March 2023 – was built through extensive consultation with more than 120 stakeholders, from industry practitioners to regulators and Government representatives. What began as 175 proposed initiatives was eventually streamlined into 76 projects considered essential for strengthening Malta’s competitiveness and regulatory maturity.

MFSAC’s latest progress review shows that 29 of these projects have now been finalised, with others advancing steadily across all core sectors.

The strategy’s work is organised across five verticals: Banking & Payments, Capital Markets, Asset Management, Insurance & Pensions, and Fintech & AI. As work evolved, the Banking and Payments initiatives converged into what is now referred to as the Payments Hub, while AI – originally grouped within Fintech – is being treated as a horizontal enabler due to its cross-sector impact.

Wealth and asset management reforms are now largely complete, as are initiatives tied to the insurance sector. Capital markets projects are also progressing, with several nearing the implementation phase.

A number of structural reforms are moving forward at legislative and infrastructural levels. The tender for a Centralised Identity Management solution has been awarded, with rollout targeted for the final quarter of 2026. Parallel efforts are taking place to design Malta’s proposed National Digital Payments Hub, with discussions ongoing to determine its most effective structure and operational model.

Meanwhile, the Companies Act – a key component of Malta’s legal modernisation – has passed its second reading in Parliament, signalling that wider corporate law updates are firmly underway.

The jurisdiction’s pitch to Family Offices has also progressed. A full suite of marketing materials has been completed, with international outreach efforts already taking place to promote Malta as a viable base for this segment.

Beyond sector-specific projects, the strategy places strong emphasis on four horizontal priorities considered essential to the sector’s long-term competitiveness: Human capital, taxation, sustainable finance, and the integration of artificial intelligence.

Work is also advancing on greater regulatory consistency across authorities. Technical analysis for a harmonised regulatory reporting framework is ongoing, with the aim of reducing duplication and easing compliance burdens for firms operating in multiple regulated areas.