Issue link: https://maltatoday.uberflip.com/i/1495990
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 T he financial services sector has in the last three decades been marked by strong performance and foreign investment. e sector con- tributed some €1.2 billion in terms of Gross Value Added to Malta's economy. It facilitates trade and investment, drives employment and has become a critical cornerstone of the Maltese economy. The sector suffered a reputational blow when Malta was grey listed in 2021. It took a concerted effort by regulatory authorities to address the shortfalls for Malta to exit the grey list in just 12 months. These facts underpinned the de- cision to set up the Malta Financial Services Advisory Council in 2021 in part to develop a long-term strategy for the sector. The national strategy was released yesterday, identifying more than 175 substantive initiatives which would refocus energy, investment and growth into this sector. The strategic priorities that un- derpin the proposed change include some important considerations, some of which have long been felt. Streamlining of regulation is one such consideration. The strategy calls for alignment and integration of regulatory institutional architecture across the Malta Financial Services Authority, the Malta Business Reg- istry and the Financial Intelligence Analysis Unit. This will facilitate timeliness, consistency, proportional- ity and certainty across all processes. This will hopefully address the con- stant gripes raised by industry players that bureaucracy imposed by multiple authorities can be burdensome. Another strategic objective is to consolidate the identity system used by regulators and subject persons. The strategy states that "at a time of heightened security and anti-money laundering regulation, it is essential for Malta to facilitate due diligence processes via a consistent and fool proof identity system that captures shareable data". This is important because it ensures consistency and provides a single point of reference to be shared by entities doing business in Malta with subject persons. One other aspect is the need to modernise taxation through the use of technology that enables the authorities to limit abuse and fa- cilitate effective enforcement. The focus should be on simplification and compliance. This is crucial to ensure a level playing field where business- es compete on efficiency, skill and diversity of offering rather than on advantages derived through illicit means. The strategy also speaks of reforms to financial law and the need to build talent in the industry. The document contains several rec- ommendations but the most impor- tant thing that comes out of it is the backing it enjoys among all stake- holders. This is reminiscent of how the financial services sector became a reality in the 1990s when consensus between the government and Op- position of the day gave birth to the framework that enabled the industry to take off and boom. The sector today is in a much dif- ferent place than it was back then. Technological challenges, a greater interlinked global system, and inter- national regulation make financial services a much more complex sector to regulate. Being nimble within the parameters of rigour is key to attract new in- vestment while minimising the risks associated with money transactions worth millions and billions. Having a long-term strategy will enable policy makers to implement changes within a broader picture thus ensuring continuity and peace of mind. Financial services, continuity and peace of mind 30.3.2023