Proposed Capital Markets Strategy ‘aims to broaden local horizons within a clear set of rules’

The Malta Financial Services Authority (MFSA) has launched a consultation on its Capital Markets Strategy.

The ultimate objectives of the proposed strategy are to provide equal and fair opportunities to market players, safeguard the stability and integrity of the financial markets, and protect investors, explains the Authority.

The document proposes a strategy to take Malta’s capital markets to the next level by establishing the Authority’s risk appetite when considering applications for admissibility to the listing.

To do so, it focusses on enhancing the legal framework to improve efficacy, efficiency, and effectiveness; strengthening the Sponsors Regime; building supervisory capacity; and setting out a strategy for investor education; with the aim of encouraging fair, efficient and transparent capital markets.

Christopher Buttigieg, interim CEO and Chief Officer Supervision for MFSA commented: “Efficient local capital markets are crucial, not only for a rapid economic recovery from COVID-19 but also to improve financial stability and maintain essential investment flows to the advantage of investors and businesses alike."

Doreen Balzan, Head of Securities and Markets Supervision at the MFSA added that “the development of a market economy and its financial stability is dependent on the growth of the capital market.

"From a regulatory framework perspective, the proposed Capital Markets Strategy aims to broaden the local horizons within a clear set of rules and predefined parameters.  

This will not only serve to grow the local capital markets but also to create a transparent framework enabling the local capital market to function more efficiently and fairly,” she concluded.