“Our system is built to safeguard society’s wellbeing and to stand firm against activities that undermine it.” This is what MFSA Chairman Jesmond Gatt had to say when framing the Authority’s latest Strategic Update, underscoring the responsibility that guides the regulator’s work in an increasingly complex global environment.

“The Strategic Update is testament that our work remains guided by a deep sense of responsibility to the markets we oversee, the entities we regulate and, perhaps most importantly, the consumers we protect,” Dr Gatt said, as the Malta Financial Services Authority outlined its progress and future direction.

As of June 2025, the MFSA had achieved a 73 per cent completion rate across its 27 strategic priorities, with further progress recorded by the end of the year. To consolidate these achievements and address emerging priorities, the current strategy has been extended through 2026.

The Strategic Update was unveiled during an event attended by key stakeholders, including government officials, industry representatives, and regulatory authorities. It highlights the MFSA’s commitment to maintaining robust oversight while fostering a more resilient, efficient, and innovation-driven financial system.

MFSA Chief Executive Officer Kenneth Farrugia described the progress achieved as a clear signal of the Authority’s delivery focus. “With 73 per cent of our strategic initiatives completed and major milestones achieved, the commitment of the Authority to deliver on its objectives is clear. We’ve come a long way, but our journey doesn’t stop here. Our goal is to keep building on what we’ve achieved to continue strengthening market confidence, while supporting innovation responsibly,” he said.

Key milestones highlighted in the update include the implementation of the Markets in Crypto-Assets Regulation (MiCAR) and the Digital Operational Resilience Act (DORA), the introduction of new rulebooks for credit institutions and company service providers, advances in supervisory digitalisation, progress in sustainable finance initiatives, and the development of homegrown regulatory frameworks to enhance Malta’s regulatory toolbox. The MFSA has also strengthened collaboration with European and global authorities.

These measures are intended to reduce administrative burdens, align Malta’s regulatory framework with European Union requirements, enhance the jurisdiction’s competitiveness, and reinforce high standards of governance and compliance across the financial services sector.

Permanent Secretary within the Ministry for Finance Paul Zahra noted that while most milestones have been reached, the Authority remains focused on future challenges. “With most of the milestones set reached, the Authority has much to celebrate, yet it remains clear-eyed about the evolving realities shaping our sector. The MFSA’s strategic process offers the opportunity to learn from our achievements and challenges, and to continue building towards the future,” he said.

The Strategic Update continues to build on five core pillars: Agile regulation, resilience, good governance, innovation, and engagement – ensuring that Malta’s financial ecosystem remains globally competitive and well prepared for the challenges ahead.