The Malta Financial Services Authority (MFSA) has taken significant steps so far in April 2026 to bolster consumer protection and regulatory standards across the island’s financial landscape. On 8 April, the regulator unveiled a public-private partnership designed to combat financial fraud more effectively, while just days later it released detailed findings from a comprehensive supervision exercise focused on tied insurance intermediaries.
Together, these initiatives underscore the MFSA’s commitment to proactive collaboration and outcomes-driven oversight.
The new Public-Private Partnership (PPP) brings together various public bodies and private-sector players to strengthen the detection, prevention, and disruption of fraud.
Permanent participants include the MFSA itself, the Malta Police Force, the Office of the Arbiter for Financial Services, the Financial Intelligence Analysis Unit, and the Central Bank of Malta.
For its inaugural phase, private-sector members comprise the Malta Bankers’ Association and retail-focused local credit institutions.
The partnership held its first formal gathering at the MFSA’s headquarters on the day of its launch.
Led by the MFSA’s Financial Crime Compliance team, the alliance creates a formal channel for sharing intelligence on fraud patterns, emerging threats, and sector-specific weaknesses.
The immediate priority is consumer-facing retail payment fraud, particularly unauthorized transactions and cases in which individuals are tricked into authorizing payments.
Structured around five core pillars—information exchange, closer operational cooperation, guidance and public education, policy refinement, and focused supervisory actions—the group will also develop a public guidance document to heighten awareness and reinforce consumer safeguards.
Additional activities will include typology workshops and targeted policy discussions, all conducted under strict confidentiality and data-protection protocols.
MFSA Chief Executive Kenneth Farrugia has described the partnership as a milestone that fosters timely threat identification and coordinated national action to shield both consumers and the integrity of the financial system.
Separately, on 13 April the MFSA issued a Dear CEO letter summarizing the first year of its Outcomes-Based Supervision thematic review of 31 corporate tied insurance intermediaries (TIIs) licensed to sell long-term life insurance products.
The assessment examined sales practices, disclosure standards, governance arrangements, remuneration models, client interactions, and the oversight exercised by appointing insurance undertakings.
While most intermediaries met basic requirements for needs assessments and disclosures, reviewers noted shortcomings in record-keeping of client meetings and incomplete awareness of certain disclosure rules.
On remuneration, the majority rely solely on commissions, but a small group imposed extra client fees without adequate documented justification, raising concerns about potential conflicts of interest.
The MFSA update also noted that the review flagged cold-calling and home-visit practices at 26 % and 23 % of firms respectively, warning against undue pressure, especially in pension-product switches.
Differences emerged between advisory and non-advisory sales, with some non-advisory intermediaries showing uncertainty around appropriateness testing. Encouragingly, most advisory firms demonstrated solid handling of clients’ sustainability preferences and proper documentation of any changes.
Complaints-handling procedures were clearly explained by 71 % of firms, though familiarity with the Arbiter for Financial Services varied.
The MFSA has given the reviewed intermediaries until the end of 2026 to close identified gaps, with a follow-up evaluation scheduled for 2027.
Insurance principals have been reminded of their duty to maintain robust monitoring and staff training.
The letter serves as market-wide guidance, encouraging all TIIs—not only those assessed—to raise standards of conduct and transparency. Collectively, these developments signal the MFSA’s determination to tackle various risks through meaningful collaboration and evidence-based supervision.