The Malta Financial Services Authority (MFSA) has released a revised Guidance Note for Shariah-Compliant Funds, reinforcing Malta’s growing position as a hub for Islamic finance. This MFSA also noted that the revision comes after an extensive review meant to enhance the overall clarity as well as the practical application of the initial framework.
The updated Guidance Note reportedly enhances regulatory transparency and aligns with the “international standards and market developments” in Islamic finance.
It forms part of the MFSA’s strategy to modernise Malta’s financial services framework and secure investment from global Islamic markets.
The framework introduces clarity for fund promoters, managers, and Shariah Advisory Boards, “simplifying compliance and strengthening Malta’s appeal as a jurisdiction for Shariah-aligned financial products.”
It complements other MFSA initiatives, including “the Authority’s work on sukuk and other Islamic capital market instruments.”
Clare Farrugia, Head of Strategy, Policy and Innovation at the MFSA, commented:
“The updated Guidance Note reflects the MFSA’s objective to deliver a transparent, accessible, and internationally aligned framework for Shariah-compliant funds. By modernising the structure and enhancing regulatory clarity, we aim to minimise uncertainty for market participants and reinforce Malta’s position as a jurisdiction of choice for Islamic investment structures.”
This revision marks a step forward in the MFSA’s ongoing efforts to ensure that Malta’s financial regulatory environment remains “responsive, inclusive, and globally competitive.”
Recently, it was also reported that the Malta Financial Services Authority (MFSA) carried out a high-level international session that underscored Malta’s commitment to sustainable financial growth, “regulatory innovation, and international collaboration.”
Held ahead of the International Organization of Securities Commissions (IOSCO) Growth & Emerging Markets and the European Regional Committee meetings in Malta, the gathering reportedly included figures from global FIs, various organisations, and academia.
Together, participants explored how forward-looking policies, capital market integration, and technology-driven supervision can “strengthen financial resilience in an increasingly complex global environment.”
IOSCO is the body that sets standards for securities regulation to “ensure fair, efficient, and transparent financial markets. It brings together regulators from around the world to promote investor protection and coordinate international market oversight.”
Deputy Prime Minister Ian Borg commended the MFSA for its long-standing engagement with IOSCO and other European and international bodies, reaffirming Malta’s commitment “to cooperation, while ensuring that small, open economies are duly represented in shaping the future of international finance.”
Hon. Clyde Caruana, Minister for Finance, delivered an overview of Malta’s economic performance, citing growth and stability.
He stated that cooperation between the MFSA and its global peers is crucial in maintaining “regulatory consistency and credibility.”
The gathering explored how geopolitical tensions, economic challenges and the risk of financial fragmentation “make a case for policymakers and financial regulators to reinforce the global financial system.”
Discussions are also said to have examined the development of capital markets, the responsible regulation of crypto-assets, the “impact of artificial intelligence and quantum computing on supervision, and the evolution of cross-border payment systems.”
The session aimed to reinforce Malta’s position as a center for global financial cooperation and as a “proactive jurisdiction shaping the next generation of regulatory and economic policy.”