MFSA launches revised regime for sponsors to strengthen Malta’s capital markets

The Malta Financial Services Authority (MFSA) has launched a revised regime for sponsors, with the new framework becoming applicable on 1 January 2026. This milestone initiative successfully delivers Pillar III of the MFSA’s Capital Markets Strategy, which focused specifically on strengthening the regulatory framework governing sponsors.

Sponsors play a critical role in Malta’s capital markets ecosystem. As designated experts on the listing regime, sponsors guide prospective issuers through the admissibility to listing process and often serves as the initial point of contact for entities seeking access to the Maltese capital markets.  In this capacity, sponsors act as a key safeguard, helping to ensure that only individuals or entities deemed fit and proper are granted market access.   

Recognising the importance of this role, the regime introduces more targeted and rigorous requirements for entities seeking to act as sponsors on the local regulated market. The framework also provides clarity on the MFSA’s supervisory expectations, enhancing consistency, accountability, and regulatory certainty across the market.

The MFSA anticipates that the newly revised regime will continue to improve the quality of applications for admissibility to listing, strengthen market discipline and foster greater investor confidence.  Over time, these measures are also expected to contribute to increased market efficiency and the sustainable development of Malta’s capital markets.

Commenting on this key development, Clare Farrugia, Head of Strategy, Policy and Innovation at the MFSA stated: “This regime represents an important milestone in the implementation of the MFSA’s Capital Markets Strategy.  By setting higher and clearer standards for sponsors, the MFSA is strengthening the first line of defence in our capital markets and laying a solid foundation to drive sustained market integrity and future growth within the Maltese capital markets”.