This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/13/2019

Overview

The Maltese financial services sector is the fastest growing sector of the economy.  Financial services account for 12 percent of Malta’s GDP and are worth more than €1 billion to the Maltese Islands in direct and indirect revenue.  Malta has gained international recognition as a world-class center that has attracted blue chip banks, fund managers, investment houses, and professional practices from the United States, United Kingdom, Germany, Austria, and Switzerland, among others.  Malta hosts more than 725 investment funds that have a combined net asset value of almost $12.2 billion as of December 2016.  While Malta has a reputation as a jurisdiction for smaller financial services companies and start-ups, the fund sector is maturing and attracting sophisticated asset management activities. The sector employs more than 10,000 people.

According to the 2017-2018 Global Competitiveness Report drawn up by the World Economic Forum, Malta is one of the top 20 financial services jurisdictions.  The report ranked Malta in the top tier of 138 nations on soundness of its banking institutions (17) and the regulation of securities exchanges (28).

Malta has developed a comprehensive package of laws that regulate the provision of financial services and provides a favorable legal and regulatory framework for the provision of such services.  This shows the government’s commitment to sustained development in the sector.  The MFSA enforces the legislation within this sector, which adheres to EU standards and codes, as well as those of most other international frameworks.  The Companies Act provides for the establishment of investment companies with variable share capital and companies with share capital denominated in a foreign currency.  The law allows for nominee shareholding both for local and foreign companies.  The Investment Services Act regulates the entire range of investment business in Malta.  

Malta is embracing Blockchain technology, including cryptocurrency and other fintech solutions.  In July 2018, the Maltese Parliament passed three bills into law - the Malta Digital Innovation Authority Act (MDIA Act), the Innovative Technology Arrangements and Services Act (ITAS Act) and the Virtual Financial Assets Act (VFAA).  Malta’s new regulations offer detailed and comprehensive details on the treatment of cryptocurrencies, the launch of initial coin offerings and subsequent treatment of assets offered to investors as well Blockchain/DLT service providers and services that they offer, including the setting up of cryptocurrency exchanges. 

Opportunities

Opportunities exist in Blockchain technology, trade finance, group marketing of regional business activities (typical representative office), regional private banking business activities, trust business, investment banking and advice, venture capital banking, captive insurance, fund management and custody service, private pension funds, and all types of outsourcing and coordination services, such as accounting and administration, insurance management, fund administration, and electronic payments systems.

Web Resources

Malta Financial Services Authority
Finance Malta

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