The MFSA Establishes The Capital Markets Supervision Function

In the context of the uptake in listing activity seen during the past few months, the MFSA has continued its efforts to create a robust and dynamic capital markets framework with the establishment of the Capital Markets Supervision Function as of 1 May 2022.

This development is the latest one in a series of measures based on the MFSA’s Capital Market Strategy that aims to take the Maltese capital markets to the next level, underpinned by five strategic pillars:

Establishing the MFSA’s risk appetite in considering applications for admissibility to listing,
Revision of the Regulatory Framework,
Strengthening the Sponsors’ Regime,
Building up supervisory capacity, and
Educating investors.

The Capital Markets Supervision Function will strive to implement this Strategy effectively, and will also operate as the MFSA’s chief arm in regulating and supervising capital markets, being responsible for, inter alia, applications for admissibility to listing and approval of prospectuses, market abuse supervision, and the supervision of issuers’ continuing obligations in terms of the Capital Markets Rules. Additionally, this Function will also be involved in Crowdfunding, the DLT MTF Pilot Regime and Green Bonds.

This initiative has resulted in the MFSA’s Securities and Markets Supervision Function (that was formerly responsible for both capital markets and investment services) being repurposed as the Investment Services Supervision Function, which going forward will be focused on implementing the MFSA’s Asset Management Strategy.

For more information, one may access the MFSA’s news alert here.