‘Our journey doesn’t stop here’: MFSA CEO on achieving majority of strategic goals

“We’ve come a long way, but our journey doesn’t stop here.” With these words, Malta Financial Services Authority (MFSA) Chief Executive Officer Kenneth Farrugia set the tone as the Authority published its latest Strategic Update, outlining its vision for a more resilient, efficient, and innovation-driven financial system.

“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,” Mr Farrugia said, emphasising that the MFSA’s focus remains on strengthening market confidence while supporting innovation responsibly.

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

The Strategic Update was unveiled during an event attended by government officials, industry representatives, and regulatory authorities. It underscores the MFSA’s dual commitment to maintaining robust regulatory oversight while fostering sustainable growth and innovation within Malta’s financial services sector.

Key milestones outlined 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, and advances in supervisory digitalisation. The Authority has also made progress in sustainable finance initiatives, developed homegrown regulatory frameworks to strengthen Malta’s regulatory toolbox, and enhanced collaboration with European and global counterparts.

These measures are designed 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 sector.

“Effective regulation is a shared effort,” Mr Farrugia added. “Our achievements are the result of the professionalism, dedication, and expertise of the MFSA’s employees. Their work has been complemented by the valuable contributions of our stakeholders, national, European, and international, whose collaboration continues to play a decisive role in ensuring an effective financial services framework for Malta.”

MFSA Chairman Jesmond Gatt, in his closing remarks, described the Strategic Update as a testament to the Authority’s steady focus amid a rapidly changing global environment. “Our system is built to safeguard society’s wellbeing and to stand firm against activities that undermine it. The Strategic Update shows that our work remains guided by a deep sense of responsibility to the markets we oversee, the entities we regulate and, most importantly, the consumers we protect,” he said.

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

The MFSA’s Strategic Update continues to rest on five key pillars: Agile regulation, resilience, good governance, innovation, and engagement – positioning Malta’s financial ecosystem to remain competitive and well prepared for the challenges ahead.