Innovation must be matched with ‘appropriate oversight’ –⁠ MFSA CEO

At a recent conference held by the Malta Financial Services Authority (MFSA), Chief Executive Officer Kenneth Farrugia reaffirmed the Authority’s commitment to a regulatory framework that supports sustainable innovation: “As the industry continues to evolve, our role is to ensure that innovation is matched with appropriate oversight.”

The conference, titled Current Developments in Asset Management – Challenges and Opportunities, brought together local and international experts to explore the evolving balance between innovation and regulatory oversight in the asset management sector.

A keynote intervention by Professor Filippo Annunziata of Bocconi University explored the regulatory implications of digital assets, while speakers from key European institutions, including Clement Boidard (European Securities and Markets Authority), offered insights into the latest EU regulatory developments and the macroprudential supervision of investment funds.

Discussing both the opportunities and potential systemic risks posed by evolving asset structures and cross-border market activity, Naïma Asmane-Boudali – Senior Policy Advisor at the European Commission said: “This is a defining moment for EU regulation, as the Savings and Investment Union sets the course for a stronger, more integrated financing ecosystem in the EU, driven by simplification and burden reduction.”

Ian Meli, MFSA’s Head of Investment Services Supervision, stated that “these discussions enable Fund Managers to gain the necessary knowledge and expertise to address future challenges and be in the know of developments driven by the EU regulatory framework.”

The programme also featured two panel discussions. The first, Shaping the Future of Asset Management, examined supervisory priorities, international coordination, and the future regulatory landscape. The second, Dynamics and Potential of Alternative Investments, explored the rise of private markets, new fund structures, and associated oversight challenges.