MFSA launches new supervision function to regulate capital markets

A new Capital Markets Supervision Function has been established within the Malta Financial Services Authority (MFSA), it announced on Thursday.

The newly set up function within the regulatory body’s Supervisory Directorate is intended to bring a “fresh focus” to the markets and listing space, and is expected to drive the implementation of Malta’s 2021 Capital Markets Strategy.

It will be responsible for the regulation and oversight of a range of activities in capital markets as follows:

1. The processing of applications for admissibility to listing on regulated markets in Malta;
2. The approvals of prospectuses in terms of the Prospectus Regulation;
3. The supervision of the continuing obligations of companies having securities listed on regulated markets in Malta;
4. The supervision of markets to identify any market abuse;
5. The authorisation and supervision of trading venues and central securities depositories;
6. The supervision of financial and non-financial entities falling under the scope of EMIR and SFTR;
7. The data quality assurance of transaction reports submitted in terms of MiFIR;
8. The supervision of administrators, contributors and users of benchmarks in terms of the Benchmarks Regulation.

The function will be also actively involved in various other initiatives such as crowdfunding, the DLT MTF (digital ledger technology multilateral trading facility) Pilot Regime and Green Bonds.

It is the result of a consultancy on Malta’s Capital Markets Strategy, aimed at initiating a discussion with the industry as to how the country’s capital markets can be taken to the next level.

The authority has appointed Lorraine Vella as head of the function, committing to further invest in human and technological resources, thereby ensuring the efficient and effective implementation of the strategy.