A Single Regulator for the Financial Services Sector

The changes in the financial legislation which took place in 1994 established the basis for Malta to create the single regulator for the financial services sector. Although the Malta Financial Services Centre was designed to perform this function, the banking regulatory and supervisory function remained at the Central Bank until the complete framework for the single regulator could be put in place.

During 2001, the Central Bank and the Malta Financial Service Centre have worked closely to consolidate the banking regulatory and supervisory function under the single regulator and the transfer of the function will take place from 1^st January, 2002. Legal Notices 324 and 325 appointing the Malta Financial Services Centre as the competent authority to regulate an supervise credit and financial institutions have been published.

Banking supervisors currently working at the Central Bank have opted to transfer to the Malta Financial Services Centre. This move will ensure that the experience and expertise built over the past years will be transferred to the new competent authority, thereby ensuring that the move will take place with the least possible disruption to the banking system.

The close working relationship between the Central Bank and the Malta Financial Services Centre will be further strengthened through the establishment of permanent linkages designed to enable the two institutions to fulfil their respective responsibilities for the regulatory and financial stability functions.

During the coming year, the single regulator will also assume regulatory and supervisory responsibilities for the Malta Stock Exchange and stockbrokers, including the functions of a Listing Authority.