Malta: Financial Sector Assessment Program-Technical Note-Insurance and Securities Sector Supervision
IMF Staff Country Reports, November 21, 2019
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- Malta: Financial Sector Assessment Program-Technical Note-Insurance and Securities Sector Supervision
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Bibliographic details
- Published: November 21, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513520896.002
Summary findings
- Reviews the institutional arrangement and supervisory practices for the insurance and securities sectors in Malta, focusing on supervisory effectiveness.
- The legal powers and supervisory objectives of the Malta Financial Services Authority (MFSA) are clear and in line with international standards.
- The MFSA has adequate legal authority to discharge its supervisory responsibilities and to take the necessary preventive and corrective measures to protect the public interest.
- Clearly established legal gateways for information sharing facilitate supervisory coordination and cooperation between the MFSA and relevant supervisors/authorities, domestically and internationally.
- The MFSA has proposed amending the MFSA Act to explicitly include the promotion of financial stability and financial market integrity as one of its key functions.
- Stable funding and full autonomy over the recruitment process are needed to support the MFSA’s operational and financial independence.
- Recognizing the scope for harmonizing and enhancing the current sectoral risk-based supervision frameworks (RBSF), the MFSA is developing an integrated RBSF.
Legal powers and supervisory objectives
- Legal powers and supervisory objectives of the MFSA are described as "clear and in line with international standards."
- The MFSA "has adequate legal authority to discharge its supervisory responsibilities and to take the necessary preventive and corrective measures to protect the public interest."
- Proposed legislative change: amend the MFSA Act to explicitly include the promotion of "financial stability and financial market integrity" as one of the MFSA's key functions.
Supervisory coordination and information sharing
- There are "clearly established legal gateways for information sharing" that facilitate coordination and cooperation between the MFSA and relevant supervisors/authorities, both domestically and internationally.
Institutional independence and resourcing
- Identified needs:
- "Stable funding" to support operational independence.
- "Full autonomy over the recruitment process" to support financial independence and operational capacity.
Risk-based supervision frameworks
- Current state: sectoral risk-based supervision frameworks (RBSF) exist and scope for harmonization and enhancement has been recognized.
- Reform underway: the MFSA "is developing an integrated RBSF."
Content in this bundle
- 1mltea2019007 — Global Insurance Market