The Dear CEO Letter provides greater transparency on the work undertaken by the Insurance and Pensions Supervision Function (IPS) in reviewing quarterly and annual financial regulatory returns submitted by (Re)Insurance Undertakings. The publication also outlines the MFSA’s supervisory expectations relating to financial reporting, solvency monitoring, governance and data quality.

(Re)Insurance Undertakings are required to submit a range of financial regulatory returns to the MFSA, including management accounts, quantitative reporting templates, solvency reports and audited financial statements. These submissions support the authority’s ongoing assessment of firms’ financial strength, risk exposure and long-term solvency.

The Dear CEO Letter explains the supervisory review process applied by the MFSA’s Financial Analysts, including risk assessments, solvency analysis, review of key performance indicators, investment portfolio oversight, and the assessment of intra-group and related party transactions.

Particular emphasis is also placed on the importance of accurate, complete and consistent regulatory reporting. The MFSA notes that high-quality data remains essential to effective supervision, financial stability monitoring and collaboration with the European Insurance and Occupational Pensions Authority (EIOPA).

The publication further outlines the authority’s expectations for (Re)Insurance Undertakings when preparing and submitting quarterly and annual financial regulatory returns. These expectations include enhanced narrative reporting, detailed financial breakdowns, updated rolling budgets, and strengthened governance and sign-off procedures.

Commenting on the publication, MFSA head of Insurance and Pensions Supervision, Ray Schembri, stated: “A financially sound and solvent (Re)Insurance Undertaking plays a vital role in safeguarding the public interest by ensuring that claims are honoured, economic stability is preserved, and trust in the insurance market is upheld. In this context, the MFSA’s responsibility to deliver strong and effective regulatory oversight is central to maintaining confidence, resilience, and integrity across the insurance sector.”

The Dear CEO Letter forms part of the MFSA’s ongoing efforts to strengthen regulatory engagement with the insurance market, promote supervisory transparency, and reinforce prudent financial and solvency practices across the sector.

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Arbiter for Financial Services Alfred Mifsud described 2025 as “a year of record numbers”, highlighting significant increases across the Office’s dispute resolution work.

The Office registered 350 complaints during the year, a 39% increase from the 251 recorded in 2024, while enquiries and minor cases rose by 16.1% to 918.

The number of complaints decided more than doubled, with the Arbiter issuing 192 final decisions compared with 94 the previous year.

Of those decisions, 150 complaints were not upheld, 37 were partially upheld and five were upheld in full. Only 11 decisions, or 6%, were appealed, down from 7% in 2024 and 12% in 2023. Five cases were decided by the Court of Appeal (Inferior Jurisdiction), with the Arbiter’s rulings largely confirmed.

The Office awarded a total of €253,000 in compensation across 39 decisions, with the highest individual award amounting to €27,000. Decisions were issued on average within 42 calendar days of the final hearing or final submissions.

Mediation continued to play a key role in resolving disputes before formal adjudication. A total of 131 complaints were closed through mediation, settlement or withdrawal, including 81 resolved during the mediation process.

During the year, the Office also abolished its €25 complaint fee, making its services free for both complainants and financial services providers.

Fraud complaints remained the largest category handled by the Office. According to the report, these mainly involved two types of scams: fraudulent payment requests sent through fake bank messages, and so-called “pig butchering” scams, where victims are manipulated over extended periods into transferring large sums of money.

In response to the growing number of such cases, the Office issued a technical note in February 2025 outlining how complaints relating to pig butchering scams should be assessed and identifying areas where financial service providers could improve their practices.

The Office said it is also working with the police and Malta’s financial regulator on a national awareness campaign against payment fraud, scheduled to launch in 2026.

A national survey commissioned by the Office found that 58.5% of 600 respondents aged 16 and over had been targeted by a financial scam. However, only 10.1% of those who lost money reported their case to the Arbiter. Among those who did not report, 58.1% said they were unaware the Office existed.

The report also highlights legislative changes introduced on 1 October 2025 that broadened the definition of an eligible customer, allowing more fraud victims to lodge complaints with the Office even if they had no direct contractual relationship with the financial services provider that processed their payment.

The amendment expands the Arbiter’s jurisdiction over fraud-related complaints while clarifying that providers can only be held responsible for their own failings rather than those of other parties involved in a payment chain. The changes apply only to transactions processed on or after 1 October 2025.

Beyond its dispute resolution work, the Office continued its public outreach efforts through social and traditional media, publishing weekly summaries of decisions and consumer lessons every Friday.

The post Financial Arbiter records busiest year yet as complaints surge in 2025 first appeared on The Malta Business Weekly.

APS Bank participated in a panel discussion entitled Regulatory Value Enablers in the Digital Frontier, held as part of Tech Law Seminar 2026 on Wednesday 6 May 2026. Discussions focused on how new European regulations are driving innovation across the financial services sector, helping organisations deliver simpler onboarding processes, stronger security measures and improved digital services.

Head of Development and Innovation Ronald Psaila represented APS Bank, sharing a banking perspective on developments in digital identity, customer onboarding and fraud prevention, and their potential to enhance the customer experience. He also discussed the practical challenges associated with upcoming regulatory requirements, particularly the Payment Services Regulation, highlighting the need for banks to complement customer education with timely interventions and safeguards that help prevent fraud.

APS Bank also participated in the Central Bank of Malta’s annual Forum for Financial Stability, held on Friday 19 June 2026 at Binja Laparelli. The Forum, entitled Financial Stability: Balancing Resilience and Complexity, provided a platform for discussion on emerging challenges and developments shaping financial stability in Malta.

Representing APS Bank, Chief Risk Officer Giovanni Bartolotta contributed to a panel discussion focusing on emerging risks brought about by digitalisation, including third-party risk and EU tech sovereignty.

Corporate Schemes Manager Mark Lamb was a guest speaker at the final Investment Masterclass of the year, hosted by financial coach Patrick Debattista on Saturday 27 June 2026 at the Salini Hotel. Supported by APS Bank, the event attracted its highest attendance to date and covered topics including money management, financial planning and investing. Mr Lamb’s session explored the role of pensions in long-term financial planning, highlighting their tax advantages and encouraging attendees to make them a key part of their financial future.

Through these engagements, APS Bank continues to share its expertise and contribute to conversations that support a more resilient, innovative and financially informed community.

The post Financial stability, digital innovation and financial wellbeing discussed by APS Bank representatives first appeared on The Malta Business Weekly.

Deloitte’s 2026 Global Tax Policy Survey of 1,010 tax and finance leaders across 28 jurisdictions reveals that organisations are facing increased tax complexity, growing compliance burdens, and high upfront costs to reap the benefits of digitalisation. For Maltese businesses, these demands present an opportunity to assess and redesign their financial data and systems’ environment.

“Organisations are contending with a substantial increase in the demands placed on their finance functions,” says Conrad Cassar Torregiani, Deloitte Malta Tax leader. “The survey data shows that 84% of respondents expect more public tax disclosures and reporting in the next two to three years. For Maltese organisations, this compliance trigger should prompt a broader assessment: how can we use this as an opportunity to improve our data quality, implement AI tools, automate processes, and elevate our teams to higher-value work?”

Compliance as a catalyst for financial transformation

The survey identifies compliance and administrative requirements as the single biggest operational impact across all tax policy areas. Almost 40% of respondents cite the rising compliance burden as their primary concern and 84% of respondents anticipate increased public tax disclosures and reporting requirements over the next two to three years.

“The investment will need to be made, the approach will define whether the outcome is a cost or a benefit,” says Cassar Torregiani. “Leaders need to reframe compliance as a transformative opportunity, not as isolated projects, but as a catalyst to improve tax and finance data quality, to enable AI deployment, and identify automation opportunities. Organisations that take a more holistic approach will emerge with efficiencies and advantages that go beyond meeting reporting requirements.”

Eighty-eight per cent of respondents expect to pay more tax as a result of the Organisation for Economic Co-operation and Development’s (OECD) initiatives around ensuring the imposition of a global minimum tax for multinationals, suggesting that the initiative is achieving its intended policy objective. However, although there have been moves towards simplification, such as the introduction of new safe harbours, more is needed with 41% of respondents believing that further simplification of compliance should be a priority.

Mixed news on digitalisation

Most businesses expect to benefit from simpler, more efficient tax administration through digitalisation. Some, though, are experiencing challenges during the transition phase, citing increased costs and complexity – 85% of respondents expect AI-based tax compliance software to deliver positive impacts ranging from improved accuracy to reduced compliance costs, while 15% remain more negative, expecting the main impact to be increased implementation costs.

The key to realising these benefits is avoiding a narrow compliance-focused approach. Organisations that implement e-invoicing, data management systems, and AI tools as part of a coordinated financial transformation will see broader returns. These include improved data quality for strategic analysis, enhanced process automation across finance functions, and the ability to deploy AI tools for forecasting, risk analysis, and financial planning. Relieving finance function staff of repetitive manual work will also create an opportunity to elevate staff to higher-value strategic and analytical work.

E-invoicing presents a case study in this approach. Optimism about its simplification benefits has declined from 40% in 2025 to 36% in 2026, as concerns about implementation costs have increased. However, when integrated into a broader financial data transformation, where the improved data quality needed for e-invoicing data feeds into improved financial systems, analytics, and AI applications, the possible return on investment is elevated. The same holds true for Tax Administration 3.0, the OECD’s vision of seamless digital tax administration, which is expected to deliver positive outcomes by 80% of respondents. However, 19% expect increased costs and complexity during implementation.

Recognising these challenges, policymakers across the globe are pursuing simplification agendas. The European Commission is soon to release a tax omnibus package with the declared objective to streamline compliance and enhance competitiveness of the Single Market. The approach adopted in the omnibus will be closely watched, as it signals how policymakers in the EU intend to tackle concerns around the growing cost and complexity of tax compliance.

Tax incentives are key for the future

As global tax frameworks stabilise, tax incentives are emerging as a primary tool for jurisdictional competition. The survey shows that 57% of respondents note that governments are increasingly using tax incentives to attract foreign talent. The survey also shows that 38% of respondents expect new tax incentives to emerge as global minimum tax frameworks become established, while 57% expect existing incentives to remain valuable.

This trend is relevant for Malta, which has historically relied on tax incentives to provide genuine competitive advantage in attracting both investment and talent. In an environment where governments globally are increasing their use of incentives, Malta’s proposition must be continuously innovated to remain competitive in attracting and retaining high-value-add business activity.

“Tax incentives are increasingly shaping how jurisdictions compete for investment and talent,” says Cassar Torregiani. “Malta’s tax incentive framework can be a genuine competitive advantage. As governments globally increase their use of incentives to attract foreign talent and investment, Malta must continue to innovate to remain competitive.”

For more information visit www.deloitte.com/mt/gtps

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As from May, the European Commission suspended business survey results for Malta (and Estonia), due to changes in partner institutes. Consequently, the Economic Sentiment Indicator, the Employment Expectations Indicator and the Economic Uncertainty Indicator are not available. However, the consumer sentiment indicator remains available, and it improved significantly in May.

Overall, conditions in the property market remain strong. In May, approved commercial permits increased compared with a year earlier. On the demand side, both the number of residential promise-of-sale agreements and the number of final deeds of sale decreased in May, compared with a year earlier.

In May, unemployment expectations, as published by the European Commission, rose to stand above their historical average. The unemployment rate increased slightly to 3.6% in April, and stood above the previous month’s rate and the rate recorded in the same month a year earlier.

Malta’s inflation rate declined in May and stood well below that in the euro area. The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) declined to 2.1% in May, while HICP inflation excluding food and energy fell marginally to 2.3%. Across the euro area, HICP inflation was higher than that in Malta due to the increase in energy inflation in the euro area. In May, inflation based on the Retail Price Index (RPI) decreased.

In April, the Consolidated Fund reported a surplus compared with a deficit recorded a year earlier, due to an increase in government revenue which outweighed an increase in government expenditure.

The annual rate of change of Maltese residents’ deposits decelerated when compared with March, while annual credit growth was unchanged.

The full ‘Economic Update’ is available on www.centralbankmalta.org/economic-update

The post Business conditions remain above their long-term average – Central Bank of Malta first appeared on The Malta Business Weekly.

The review examined the frameworks and controls adopted by banks to identify, assess and mitigate these risks, which the regulator described as significant and constantly evolving threats to the integrity of the financial system.

In its letter, the MFSA highlighted a number of supervisory observations, examples of good industry practice and areas where further improvements are expected. The exercise builds on a similar review carried out in 2025 among financial institutions and crypto-asset service providers.

The authority noted that recent reports by the Financial Action Task Force (FATF) point to increasing links between traditional financing methods and emerging digital technologies, as well as growing sophistication among those seeking to evade sanctions and proliferation financing controls.

Against this backdrop, the MFSA said credit institutions must maintain robust and adaptable systems capable of effectively addressing terrorist financing, proliferation financing and sanctions-evasion risks.

Among its key observations, the regulator found that banks generally demonstrated strong alignment with Malta’s National Risk Assessment. It said institutions should continue incorporating both national and supranational risk assessments into their business-wide and jurisdictional risk frameworks.

The authority also stressed the importance of giving terrorist financing, proliferation financing and sanctions-evasion risks distinct consideration within internal risk-management systems, while continuing to apply proportionate and risk-based measures to prevent breaches or circumvention of restrictive measures.

The use of artificial intelligence was another area highlighted in the review. The MFSA said institutions deploying or considering AI solutions should have a clear understanding of how such systems operate, including their limitations, and should maintain comprehensive audit trails of alerts and decisions.

The regulator also underscored the need for ongoing, role-specific training programmes, particularly for employees working in higher-risk areas.

The MFSA encouraged credit institutions to review the findings alongside existing guidance issued by both the authority and the Financial Intelligence Analysis Unit (FIAU), with a view to strengthening their compliance frameworks and maintaining alignment with regulatory expectations.

The authority said insights gathered during the exercise may help shape its future supervisory approach to financial crime compliance.

The post MFSA issues guidance to banks on terrorism financing and sanctions risks first appeared on The Malta Business Weekly.

The figures emerge from the FIAU’s 2025 annual report published Tuesday, which highlighted the authority’s supervisory, enforcement and intelligence work in Malta’s efforts to combat money laundering and terrorist financing.

The FIAU said it received 10,712 suspicious transaction reports during the year, up from 9,430 in 2024, while carrying out 150 supervisory interventions across financial and non-financial sectors.

The report is themed “Behind Every Euro Laundered Lies a Victim,” which the FIAU said reflects the human impact of financial crime, including fraud, corruption, trafficking and exploitation.

In a statement accompanying the report, FIAU director Alfred Zammit said the authority’s work remained focused on protecting both Malta’s financial system and society from the proceeds of crime.

“Our work is purpose-led and human-driven: every improvement we make, every risk we mitigate, every suspicious report we analyse, serves people first,” Zammit said.

The report also outlines preparations for the European Union’s evolving anti-money laundering framework, including the establishment of the Anti-Money Laundering Authority (AMLA) and the implementation of the Sixth Anti-Money Laundering Directive.

The FIAU said it continued to participate in European discussions surrounding AMLA’s development, while Zammit was appointed vice-chair of MONEYVAL for the 2026-2028 term.

According to the report, fraud remained the most frequently reported suspected predicate offence, accounting for 28% all cases analysed by the FIAU, followed by tax crimes at 8%. 50% of the cases were registered as unknown, as the predicate offence could not be established.

The FIAU said preparatory work carried out during 2025 also paved the way for the introduction of a settlement process in April 2026, which it said would strengthen its ability to pursue timely and proportionate enforcement outcomes.

The report showed that suspicious transaction reports (STRs) have continued to rise steadily over recent years, increasing from 7,323 in 2021 to 10,712 in 2025. The FIAU said the latest figure represented a 13% increase over the 9,430 reports received in 2024.

Drug trafficking, sanctions circumvention and sanctions violations each accounted for 4% of reports.

The report also highlighted a sharp increase in reporting by crypto-asset service providers, which submitted 3,712 reports in 2025, more than double the 1,751 filed a year earlier.

While still among the largest reporting entities, reports from remote gaming operators have steadily decreased since 2022, filing 3,002 reports in 2025, down from 3,670 in 2024, while financial institutions submitted 2,098 and credit institutions 1,082.

In 2025, 67 reports were filed by accountancy and audit entities.

The FIAU said its intelligence work resulted in 4,351 disseminations to foreign financial intelligence units during the year. It also made 450 disseminations to the Malta Police Force, 493 to the Malta Tax and Customs Administration, and 258 to local supervisory authorities and other competent authorities.

On the supervisory front, the authority carried out 150 interventions targeting subject persons across both the financial and non-financial sectors. 32% of these consisted of thematic reviews, while 25% were full-scope onsite inspections.

Other interventions included thematic inspections (11%), targeted inspections (9%), policy and procedure reviews (7%) and supervisory meetings (1%).

As of December 2025, the FIAU was overseeing 2,150 subject persons. These included 562 entities within the financial sector and 1,717 within designated non-financial businesses and professions, including accountants, auditors, notaries, advocates, tax advisors, land based operations, land based casinos, corporate service providers, remote gaming companies, real estate agents and lawyers.

The report also provided an overview of the outcome of appeals lodged against FIAU penalties between 2018 and 2025.

There were appeals involving fines which amounted to €13,138,924 imposed by the FIAU. Between 2018-2025, €7.89 million in penalties were imposed in court revised fines.

The authority’s cash restriction section meanwhile investigated transactions worth €11.6 million during 2025. It received 88 reports and concluded 82 cases. Of these, 38 involved full investigations, while 25 were closed after investigators established that any cash payments involved were below the legal threshold.

Nine cases were resolved through administrative settlement and four were referred to other competent authorities.

The 82 cases concluded in 2025 included 214 persons, 112 transactions, 41 moto-vehicle transactions, 29 sea-craft transactions, 34 immoveable property transactions and eight transactions involving high value goods like antiques and works of art.

11 breaches of high value goods transactions were confirmed, involving transactions valued at €495,500 and a cash component exceeding €171,300.

19 administrative penalties amounting to €49,500 were issued in relation to those breaches in 2025.

Of the 11 breaches in 2025, five were motor vehicle transactions, five were seacraft transactions, and one was an immoveable property transaction.

Beyond its domestic operations, the FIAU said it continued preparing for the implementation of the European Union’s new anti-money laundering framework.

The authority participated in four Anti-Money Laundering Authority working groups covering nine different mandates and attended 38 related meetings, in addition to 36 AMLA network meetings.

The report also highlighted developments within the Centralised Bank Account Register, which provides authorised authorities with direct access to banking information.

In 2025, there were 37 reporting entities. Designated users from authorities who are eligible to access the CBAR directly include the FIAU, the Malta Police Force, the Asset Recovery Bureau, the Commissioner for Revenue, the Sanctions Monitoring Board and Security Services.

By the end of 2025, the register contained information on approximately 1.9 million IBAN accounts and covered a client base of around 1.26 million natural persons and 41,000 legal entities and arrangements.

Usage of the register decreased, with case-by-case searches dropping from 25,000 in 2024 to 21,000 in 2025. The number of designated users authorised to access the system grew from 97 to 118.

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Against an uncertain global backdrop due to the Middle East conflict, the Maltese economy is expected to present some degree of resilience to these effects in 2026, though a marginal delayed impact on GDP and prices is envisaged to materialise in 2027.

Growth over the projection horizon is expected to be led by private consumption, which is projected to continue to grow at a brisk pace, in part supported by recent changes to income tax bands.

Employment growth is expected to moderate gradually to 2.3% by 2028. The unemployment rate is forecast to edge down to 2.9% over the projection horizon.

Wage growth is set to remain strong, driven by labour market tightness, but is set to ease to 3.9% in 2028 from 4.2% last year.

HICP inflation is projected to be impacted by the war in the Middle East, primarily through the channel of higher imported inflation, particularly in goods and food components as continued fiscal support mitigates the propagation of the energy shock on domestic energy prices. Overall HICP inflation is thus projected to increase to 2.5% in 2026 and is set to remain at that level in 2027. It is then expected to ease to 2.2% in 2028, driven primarily by lower services and NEIG inflation. Compared to the Bank’s previous forecast publication, overall HICP inflation has been revised up by 0.2 percentage points in 2026 and 2028 and by 0.4 percentage points in 2027.

The general government deficit-to-GDP ratio is projected to continue to decline over the forecast horizon, albeit in a more gradual manner. It is set to narrow to 1.9% in 2026, 1.7% in 2027 and to 1.6% by 2028. The general government debt-to-GDP ratio is expected to decline further from 46.4% in 2025 to 46.0% in 2026 and subsequently to 44.1% by 2028. 

Risks to growth are tilted to the downside. These risks largely emanate from the uncertainty surrounding the duration and intensity of the conflict in the Middle East which may lead to a weaker external environment and hence a more subdued trajectory in foreign demand. Disruptions to transport through the Strait of Hormuz have also raised concerns on fuel shortages in trading partner countries which may negatively impact tourism, aviation and the shipping industry. However, this downside risk to tourism could be mitigated potentially by the redirection of tourists towards safer destinations like central and western Mediterranean.

Risks to inflation are tilted to the upside over the projection horizon. Upside risks to inflation primarily reflect stronger disruptions to energy markets than assumed in the technical assumptions. Although the direct impact on domestic energy prices continues to be mitigated by the Government’s commitment to its fixed energy price policy, higher than envisaged global energy prices could generate stronger imported inflation, with potential further amplification via indirect effects on wages and profit margins. Inflation could also be higher than expected if supply disruptions were to spread to non-energy markets, although alternative supplies from other regions could mitigate this effect.

On the fiscal side, risks are assessed to be tilted to the downside (deficit-increasing). These predominantly stem from the possibility of slippages in current expenditure, notably higher-than-expected spending on energy support measures should commodity prices exceed assumptions. These risks are partly mitigated by the likelihood of higher-than-forecast increases in tax revenue, brought about by additional improvements in tax administration.

The post Central Bank forecasts growth to remain resilient despite global uncertainty first appeared on The Malta Business Weekly.

The Malta Financial Services Authority (MFSA) has published findings from its 2025 Outcomes-Based Supervision review of marketing communications in the insurance and investment sectors. The review identified shortcomings in governance, disclosures, monitoring and record-keeping, while also highlighting examples of good market practice.

The review formed part of the MFSA’s wider Compliance Outcomes-Based Supervision framework, which focuses on achieving measurable supervisory outcomes that support consumer protection, market integrity and financial stability.

Marketing communications identified as a supervisory priority

Marketing communications were identified as a key supervisory priority for 2025, reflecting the important role that advertisements and promotional materials play in influencing consumer and investor decisions.

The review assessed whether marketing communications issued by regulated entities are fair, clear and not misleading, and whether consumers are provided with the information necessary to make informed decisions.

Key areas for improvement

The exercise identified several areas where firms are expected to strengthen their frameworks and controls.

Among the key findings were shortcomings in the documentation of marketing policies and procedures, weaknesses in post-publication monitoring processes, deficiencies in record-keeping practices, and instances where disclosures relating to risks, regulatory status and external website links were not sufficiently prominent or comprehensive.

The review also highlighted the importance of ensuring that marketing communications remain accurate, up to date and appropriately targeted to their intended audience.

Examples of good market practice

Alongside the areas requiring improvement, the authority identified examples of good market practice across the sectors reviewed.

These included regular reviews of marketing policies, structured compliance monitoring programmes, standardised disclosure templates, marketing compliance checklists and enhanced oversight controls designed to support fair and transparent communications.

Supporting consumer protection and market integrity

Christopher P. Buttigieg, chief officer Supervision at the MFSA, said: “Consumers and investors should be able to rely on marketing communications that are fair, clear and not misleading. Through our Outcomes-Based Supervision framework, we continue to engage with industry to strengthen standards, promote transparency and support informed decision-making across Malta’s financial services sector.”

The Dear CEO Letters set out the authority’s expectations and provide guidance to licensed entities on addressing identified shortcomings and enhancing compliance with applicable regulatory requirements.

The MFSA said it will continue engaging with firms as part of its three-year supervisory cycle and will assess the extent to which the expected compliance outcomes have been achieved.

The post MFSA highlights marketing compliance findings from 2025 Outcomes-Based Supervision review first appeared on The Malta Business Weekly.

The Malta Financial Services Authority (MFSA) has published findings from its 2025 Outcomes-Based Supervision review of marketing communications in the insurance and investment sectors. The review identified shortcomings in governance, disclosures, monitoring and record-keeping, while also highlighting examples of good market practice.

The review formed part of the MFSA’s wider Compliance Outcomes-Based Supervision framework, which focuses on achieving measurable supervisory outcomes that support consumer protection, market integrity and financial stability.

Marketing communications identified as a supervisory priority

Marketing communications were identified as a key supervisory priority for 2025, reflecting the important role that advertisements and promotional materials play in influencing consumer and investor decisions.

The review assessed whether marketing communications issued by regulated entities are fair, clear and not misleading, and whether consumers are provided with the information necessary to make informed decisions.

Key areas for improvement

The exercise identified several areas where firms are expected to strengthen their frameworks and controls.

Among the key findings were shortcomings in the documentation of marketing policies and procedures, weaknesses in post-publication monitoring processes, deficiencies in record-keeping practices, and instances where disclosures relating to risks, regulatory status and external website links were not sufficiently prominent or comprehensive.

The review also highlighted the importance of ensuring that marketing communications remain accurate, up to date and appropriately targeted to their intended audience.

Examples of good market practice

Alongside the areas requiring improvement, the Authority identified examples of good market practice across the sectors reviewed.

These included regular reviews of marketing policies, structured compliance monitoring programmes, standardised disclosure templates, marketing compliance checklists and enhanced oversight controls designed to support fair and transparent communications.

Supporting consumer protection and market integrity

Christopher P. Buttigieg, Chief Officer Supervision at the MFSA, said: “Consumers and investors should be able to rely on marketing communications that are fair, clear and not misleading. Through our Outcomes-Based Supervision framework, we continue to engage with industry to strengthen standards, promote transparency and support informed decision-making across Malta’s financial services sector.”

The Dear CEO Letters set out the Authority’s expectations and provide guidance to licensed entities on addressing identified shortcomings and enhancing compliance with applicable regulatory requirements.

The MFSA said it will continue engaging with firms as part of its three-year supervisory cycle and will assess the extent to which the expected compliance outcomes have been achieved.

The post MFSA highlights marketing compliance findings from 2025 Outcomes-Based Supervision review first appeared on The Malta Business Weekly.