Issue link: https://maltatoday.uberflip.com/i/1164933
12.09.19 14 NEWS The MFSA publishes its Strategic Plan 2019 – 2021 THE MFSA has published its three-year Strategic Plan highlighting its supervi- sory priorities and the key priority ar- eas which will be addressed in order to achieve its ambitious Vision by 2021. is Plan has been developed in the context of challenges faced by the lo- cal and international financial mar- kets, such as the labour supply and new emerging risks emanating from the drive towards financial innovation and technology. e Strategic Plan also gives due con- sideration to international regulatory developments and instances of miscon- duct on both a local and global level, which may have negatively impacted the trust in the financial services mar- ket worldwide. Emphasising the importance for open- ness, transparency and accountability, the publication of this Strategic Plan follows a consultation process with li- cence holders in the form of a survey which was carried out in March 2019. rough this market survey, licence holders were given the opportunity to rate the performance of the Authority and provide feedback on challenges and strategic areas that should be ad- dressed. With this roadmap, the MFSA is tak- ing on-board recommendations made by international institutions and stand- ard setters, namely, the International Monetary Fund (IMF), Moneyval, rat- ing agencies, the European Commis- sion, the European Central Bank and the European Banking Authority. In the meantime, the Authority is de- veloping a new five-year business plan which envisages a reform in the financ- ing model of the MFSA, ensuring its long-term sustainability and equipping the Authority with sufficient resources to fulfil its mandate. is reform includes the introduction of new ancillary fees to cover services currently provided free of charge, as well as a revision in authorisation and supervisory fees so that the new reve- nue model reflects the real cost of su- pervision based on the risk profile/as- sessment of each sector supervised by the MFSA. Furthermore, the new business plan should lead the MFSA to become self-funded by 2024 in line with the fi- nancing model adopted in other Euro- pean jurisdictions. In addition to a number of sector-spe- cific priorities which consider the wide array of entities regulated by the MFSA, the Strategic Plan draws on the main pillars of the MFSA's strategic frame- work and targets specific cross-sectoral priorities. Aimed at embracing innovation and technology and improving the efficien- cy and efficacy of the Authority's core functions, these priorities are intended to: • Strengthen the governance, cul- ture and conduct within the fi- nancial services market; • Renew our commitment towards preventing, detecting and ad- dressing instances of money laun- dering, financial crime and the financing of terrorism; the MFSA will be carrying out thematic re- views on sector-specific risks, and provide guidance to firms on good practice measures; • Safeguard the stability and sus- tainability of the local finan- cial market against current and emerging risks; a new Financial Stability function will be set up within the Authority, coupled with investment in Business Intel- ligence, Knowledge management, Cybersecurity measures and new analytical tools; • Embrace the challenges and op- portunities provided by technolo- gy and innovation to enhance our supervisory capacity and foster the growth and stability of the fi- nancial market. e MFSA will be investing Eur 12M in technology development over the next three years; • Increase the MFSA's organisa- tional capacity and operational efficiency whilst taking measures to address the gaps in the local la- bour market; • Enhance our conduct supervisory framework by focusing on con- sumer education and awareness to ensure the protection of con- sumer interests. Commenting on the launch of the Stra- tegic Plan, MFSA CEO, Joseph Cuschie- ri, said that: "Our Strategic Plan is fo- cused on strengthening the MFSA and preparing it for the next generation of financial services. is roadmap defines the specific programmes and actions we will be taking to achieve this objective, with substantial investment in our hu- man resources, capacity building and investment in cutting-edge technolo- gies. is reflects our commitment to provide a more agile, safe, dynamic and efficient environment to the benefit of consumers and regulated firms." THE Malta Financial Services Authority ('MFSA'), in collaboration with the US Em- bassy, has partnered with the US Commodi- ty Futures Trading Commission ('CFTC') to deliver a three-day training workshop enti- tled "Virtual Assets: the emergence of a new asset class". e workshop, which will be held between 9th and 11th September, will also see the participation of other foreign regulatory bodies namely, members from the Europe- an Securities Markets Authority ('ESMA'), the German Federal Financial Supervisory Authority ('BaFin') and Mauritius' Financial Services Commission ('FSC'). While particular focus is being given to fi- nancial crime in the context of virtual assets, this workshop will also delve into other areas such as the implications of the recently up- dated Financial Action Task Force ('FATF') recommendations, the various supervisory challenges posed by virtual assets to finan- cial services regulators, and the importance of international cooperation in this field. CFTC top officials Mr Kevin Piccoli and Mr Brian Trackman will be amongst the 27 field experts speaking and taking part in the panel discussions aimed at providing the 140 delegates with more practical and hands-on insight into the regulation, supervision and enforcement issues associated with this nas- cent industry. "It is an honour for us to be hosting so many high-profile speakers for this workshop at the MFSA and creating further dialogue on new industries," MFSA CEO, Joseph Cus- chieri remarked during his welcome address. Adding to this, Cuschieri said "In our jour- ney to become a top-tier regulator in Eu- rope, we are committed to strengthen our ties with international institutions and regu- lators and join forces in our efforts to clamp down on financial crime. Resonating with the US treasury official's call for a zero-toler- ance approach during his visit to Malta last month, we are indeed fostering stronger re- lationships with CFTC and the US Embassy and engaging in knowledge sharing, so that we enter the FinTech space with the highest level of preparedness." On his part, US Embassy Chargé d'Af- faires, Mark A. Schapiro, said: "Enhancing public-private partnerships that expose and eliminate financial vulnerabilities is a top priority for the U.S. Embassy. We value Mal- ta's partnership and commitment towards combatting money laundering and terrorism financing. rough our close collaboration with the Maltese government, we are join- ing forces to confront some of this region's crucial challenges – including corruption, money laundering, financial criminal inves- tigations, finance terrorism, and illicit arms trade". MFSA partners with US regulatory agency for workshop on Virtual Financial Assets