Government to establish Financial Arbiter

Deputy Prime Minister Louis Grech today announced that in the near future, the government would be introducing new legislation for the establishment of a Financial Arbiter, who will receive complaints from consumers of financial service products, make recommendations to financial service providers, and deliver binding decisions.

Grech delivered his keynote speech at the 8th Annual Conference of FinanceMalta, entitled, “Building on Success, Reaching New Horizons”, where he acknowledged Malta’s achievements in the financial service industry.

Grech accredited Malta’s success and its sound reputation to the fact that over the past years, different governments have managed to nurture the right environment in order for Malta to flourish and compete with the leaders on the international level.

The government is committed to further develop Malta’s International Financial Centre – a major component of its strategy for growth and job creation. Grech maintained that it is highly important to ensure Malta remains at the forefront of governance, reputation, innovation and business simplification, as a jurisdiction. Malta possesses an array of laws and regulations that safeguard investors, and maintain fair and orderly markets.

Developments in the EU financial services continue to tighten the existing regulatory framework which result in stronger supervision, additional consumer protection and supervisory reforms.

In light of this, Grech remarked that his ministry is closely working with other ministries concerned so that financial market EU directives are expeditiously, correctly transposed and enforced into Maltese Law.

In particular, he referred to the Commission’s Green Paper on the Capital Markets Union. Whilst this was welcome in principle, Malta had to be careful that this does not bring about changes on such issues as taxation, national insurance, and social protection principles that would be adverse to Malta.

Grech referred to the need for flexibility by the Member States. This was an issue on which the British Government was harping, and will feature prominently in the forthcoming referendum about the UK’s membership. Whilst Malta could favourably consider some of the British Government’s demands, it did not agree this needed to be done through treaty change, which could open up a Pandora’s Box.

Grech had positive words and commended FinanceMalta and other entities, including the MFSA, for the sterling work in promoting Malta as an IFC as well as developing the industry.

He also referred to the setting up of Malta’s National Development Bank in the near future. A Working Group of experts has been elaborating the plans for this Bank, and discussions have already started with a view to obtaining the approval of the European Commission. The Bank will operate to ensure better access to finance, in conjunction with the commercial banks, for SMEs and large infrastructural projects, amongst others.

In concluding remarks, the Deputy Prime Minister stressed that despite the ever changing and complex environment, the Maltese Government is confident that Malta will live up to face these challenges and strive as market leaders.