Consultation document on Islamic finance in Malta
The MFSA recently issued a public consultation document on having Islamic finance in Malta applicable to banking and securities.
Over the past decade, Islamic finance has grown rapidly across the world in general and Europe in particular. According to information released by the General Council for Islamic Banks and Financial Institutions (CIBAFI), the Islamic financial services industry includes 284 institutions offering Islamic financial services operating in some 38 countries. The entities are estimated to manage $250 billion.
These figures do not however include assets managed by Islamic window operations of conventional banks (CIBAFI estimates a further $200 billion managed by these operations), non-banking Islamic institutions, takaful and re-takaful, and institutions involved in the capital market activities.
The MFSA has been closely monitoring developments in this field. In this respect, there are a number of opportunities for the setting up of Malta-based Islamic institutions as either full fledged banking institutions in terms of the Banking Act or financial in-stitutions. There are also a number of opportunities for the setting up of Sharia compliant funds in Malta.
The consultation document issued by the MFSA analyses conventional Islamic funding structures and financing vehicles vis-à-vis the Malta regime applicable to collective investment schemes, investment services providers, credit institutions and financial institutions.
The MFSA intends to continue its work on Islamic finance by issuing a consultation document on Islamic bonds (Sukuk) by the end of 2008 and Sharia insurance early in 2009.
Interested parties are invited to express their views on the introduction of Islamic finance in Malta as applicable to banking and securities by July 31. Replies should be addressed to: The director, Strategic Development Unit, MFSA, Notabile Road, Attard or by sending an e-mail to sdu@mfsa. com.mt. The consultation document is available from the MFSA website www.mfsa.com.mt under An-nouncements - Consultation Papers.
Guidance teachers' meeting
The MFSA education consultative council (ECC) organised a meeting for guidance teachers of all public and private schools on May 14. The aim of this meeting was to present recent findings from a skills survey undertaken within the financial services sector and also to provide information about the training and career opportunities within the sector. Presentations were delivered by Charles Farrugia, ECC chairman, Joe Falzon, head of the department banking and finance within the Faculty of Economics, Management and Accountancy (FEMA) at the University of Malta, and Joe V. Bannister, MFSA chairman.
Prof. Falzon provided the guidance teachers present with an overview of the structure of the banking and finance course within FEMA. He also mentioned that in October 2008 FEMA will also be offering students a Bachelor of Commerce degree in insurance and finance. Guidance teachers were also updated on the required qualifications to embark on these courses.
Prof. Bannister delivered a presentation outlining the preliminary results of the skills survey undertaken during 2007/2008. Guidance teachers had the opportunity to review the current position and skill needs of employers within the financial service sector. The skills survey was undertaken by the MFSA with the primary focus of looking at the generic skill requirements of employers within the financial services sector in Malta. Operators within the sector have been remarking that there is a skill deficiency and the MFSA prepared this survey covering vacancies and recruitment details, skill gaps and the availability of off-the-job training. A full report with the skills survey results is currently being completed and will be available to interested parties by the end of June.
During the meeting, the MFSA education counsultative council also launched a new publication entitled Jobs, Careers and Opportunities in Malta's Financial Services Industry. This publication is aimed at young students who are evaluating careers to pursue.
MFSA's consumer complaints manager becomes Fin-Net member
The consumer complaints manager within the MFSA has formally become a member of FIN-NET - the out-of-court network for the resolution of financial disputes in the European Economic Areas countries.
The network was launched by the European Commission in 2001. Within Fin-Net, the schemes cooperate to provide consumers with easy access to out-of-court complaint procedures in cross-border cases. If a consumer in one country has a dispute with a financial services provider from another country, Fin-Net members will put the consumer in touch with relevant out-of-court complaint scheme and provide the necessary information about it. Geoffrey Bezzina said that members of Fin-Net are linked through a Memorandum of Understanding (MoU) on a cross-border out-of-court complaints network for financial services in the EEA. Access to the MoU is open to any scheme which is responsible for out-of-court settlement of disputes between consumers and service providers in financial services, provided it complies with the principles set out in Commission Recommendation 98/257/EC of March 30, 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes.
With Malta's membership, Fin-Net is now made up of 47 members from 22 European Economic Area countries.
The Malta alternative for insurance
Strategic Risk Magazine and MFSA held an afternoon briefing in London, on May 21, highlighting new opportunities in Malta for the insurance and captive markets. Taking part in the event, which was moderated by Lee Coppack (editor of Catastrophe Risk Management Magazine, were: Joe V. Bannister (chairman MFSA), John Copeland (Marsh Malta), Praveen Sharma (Aon Global Risk Consulting), Anne Marie Tabone (IIMS) and Michael Gatt (Atlas PCC).
The proceedings took the form of a roundtable discussion followed by an extensive question and answer session where the audience present had the opportunity to ask questions on the regulatory and business aspects of carrying out insurance activities in Malta.
The audience represented a wide spectrum of city firms including insurers, brokers, insurance auditors and lawyers, as well as corporate groups interested in or in the process of setting up insurance companies in Malta. Also present were a number of Malta-based insurance managers.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website.
New licences issued in April/May
Collective investment scheme licences
Professional Investor Funds
• Licence issued to Novium Opportunity Umbrella SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to NBCG Fund SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to S3 Global Multi-Strategy Fund (Malta) SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting extraordinary investors.
• Licence issued to Alphabetos International Funds SICAV plc in respect of two sub-funds. These funds are professional investor funds targeting extraordinary investors.
• Licence issued to The ARP Absolute Return Funds (SICAV) plc in respect of 1 sub-fund. This fund is a professional investor fund targeting qualifying investors.
Investment services
• Category 1A licence issued to Raiffeisen Malta Bank plc.
• Category 1B licence to Liability Solutions International Limited.
• Category 2 licence issued to AS Financial Services Limited.
Licence upgrade
Fundior's Investment Services Limited Category 1A licence was upgraded to a Category 2 IS Licence.
Trusts and Trustees
• Licence issued to Knights Fiduciaries Limited to provide fiduciary services.
Surrender of Licences
• Voluntary surrender of Sabius SICAV Limited in respect of the Sabius Fund.
MFSA website: http://www. mfsa.com.mt
Registry website: http://registry. mfsa.com.mt
Consumer website: http://www. mfsa.com.mt/consumer.
The MFSA recently issued a public consultation document on having Islamic finance in Malta applicable to banking and securities.
Over the past decade, Islamic finance has grown rapidly across the world in general and Europe in particular. According to information released by the General Council for Islamic Banks and Financial Institutions (CIBAFI), the Islamic financial services industry includes 284 institutions offering Islamic financial services operating in some 38 countries. The entities are estimated to manage $250 billion.
These figures do not however include assets managed by Islamic window operations of conventional banks (CIBAFI estimates a further $200 billion managed by these operations), non-banking Islamic institutions, takaful and re-takaful, and institutions involved in the capital market activities.
The MFSA has been closely monitoring developments in this field. In this respect, there are a number of opportunities for the setting up of Malta-based Islamic institutions as either full fledged banking institutions in terms of the Banking Act or financial in-stitutions. There are also a number of opportunities for the setting up of Sharia compliant funds in Malta.
The consultation document issued by the MFSA analyses conventional Islamic funding structures and financing vehicles vis-à-vis the Malta regime applicable to collective investment schemes, investment services providers, credit institutions and financial institutions.
The MFSA intends to continue its work on Islamic finance by issuing a consultation document on Islamic bonds (Sukuk) by the end of 2008 and Sharia insurance early in 2009.
Interested parties are invited to express their views on the introduction of Islamic finance in Malta as applicable to banking and securities by July 31. Replies should be addressed to: The director, Strategic Development Unit, MFSA, Notabile Road, Attard or by sending an e-mail to sdu@mfsa. com.mt. The consultation document is available from the MFSA website www.mfsa.com.mt under An-nouncements - Consultation Papers.
Guidance teachers' meeting
The MFSA education consultative council (ECC) organised a meeting for guidance teachers of all public and private schools on May 14. The aim of this meeting was to present recent findings from a skills survey undertaken within the financial services sector and also to provide information about the training and career opportunities within the sector. Presentations were delivered by Charles Farrugia, ECC chairman, Joe Falzon, head of the department banking and finance within the Faculty of Economics, Management and Accountancy (FEMA) at the University of Malta, and Joe V. Bannister, MFSA chairman.
Prof. Falzon provided the guidance teachers present with an overview of the structure of the banking and finance course within FEMA. He also mentioned that in October 2008 FEMA will also be offering students a Bachelor of Commerce degree in insurance and finance. Guidance teachers were also updated on the required qualifications to embark on these courses.
Prof. Bannister delivered a presentation outlining the preliminary results of the skills survey undertaken during 2007/2008. Guidance teachers had the opportunity to review the current position and skill needs of employers within the financial service sector. The skills survey was undertaken by the MFSA with the primary focus of looking at the generic skill requirements of employers within the financial services sector in Malta. Operators within the sector have been remarking that there is a skill deficiency and the MFSA prepared this survey covering vacancies and recruitment details, skill gaps and the availability of off-the-job training. A full report with the skills survey results is currently being completed and will be available to interested parties by the end of June.
During the meeting, the MFSA education counsultative council also launched a new publication entitled Jobs, Careers and Opportunities in Malta's Financial Services Industry. This publication is aimed at young students who are evaluating careers to pursue.
MFSA's consumer complaints manager becomes Fin-Net member
The consumer complaints manager within the MFSA has formally become a member of FIN-NET - the out-of-court network for the resolution of financial disputes in the European Economic Areas countries.
The network was launched by the European Commission in 2001. Within Fin-Net, the schemes cooperate to provide consumers with easy access to out-of-court complaint procedures in cross-border cases. If a consumer in one country has a dispute with a financial services provider from another country, Fin-Net members will put the consumer in touch with relevant out-of-court complaint scheme and provide the necessary information about it. Geoffrey Bezzina said that members of Fin-Net are linked through a Memorandum of Understanding (MoU) on a cross-border out-of-court complaints network for financial services in the EEA. Access to the MoU is open to any scheme which is responsible for out-of-court settlement of disputes between consumers and service providers in financial services, provided it complies with the principles set out in Commission Recommendation 98/257/EC of March 30, 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes.
With Malta's membership, Fin-Net is now made up of 47 members from 22 European Economic Area countries.
The Malta alternative for insurance
Strategic Risk Magazine and MFSA held an afternoon briefing in London, on May 21, highlighting new opportunities in Malta for the insurance and captive markets. Taking part in the event, which was moderated by Lee Coppack (editor of Catastrophe Risk Management Magazine, were: Joe V. Bannister (chairman MFSA), John Copeland (Marsh Malta), Praveen Sharma (Aon Global Risk Consulting), Anne Marie Tabone (IIMS) and Michael Gatt (Atlas PCC).
The proceedings took the form of a roundtable discussion followed by an extensive question and answer session where the audience present had the opportunity to ask questions on the regulatory and business aspects of carrying out insurance activities in Malta.
The audience represented a wide spectrum of city firms including insurers, brokers, insurance auditors and lawyers, as well as corporate groups interested in or in the process of setting up insurance companies in Malta. Also present were a number of Malta-based insurance managers.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website.
New licences issued in April/May
Collective investment scheme licences
Professional Investor Funds
• Licence issued to Novium Opportunity Umbrella SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to NBCG Fund SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting qualifying investors.
• Licence issued to S3 Global Multi-Strategy Fund (Malta) SICAV plc in respect of one sub fund. This fund is a professional investor fund targeting extraordinary investors.
• Licence issued to Alphabetos International Funds SICAV plc in respect of two sub-funds. These funds are professional investor funds targeting extraordinary investors.
• Licence issued to The ARP Absolute Return Funds (SICAV) plc in respect of 1 sub-fund. This fund is a professional investor fund targeting qualifying investors.
Investment services
• Category 1A licence issued to Raiffeisen Malta Bank plc.
• Category 1B licence to Liability Solutions International Limited.
• Category 2 licence issued to AS Financial Services Limited.
Licence upgrade
Fundior's Investment Services Limited Category 1A licence was upgraded to a Category 2 IS Licence.
Trusts and Trustees
• Licence issued to Knights Fiduciaries Limited to provide fiduciary services.
Surrender of Licences
• Voluntary surrender of Sabius SICAV Limited in respect of the Sabius Fund.
MFSA website: http://www. mfsa.com.mt
Registry website: http://registry. mfsa.com.mt
Consumer website: http://www. mfsa.com.mt/consumer.