Bernice Buttigieg, Chief Strategy Officer at FinanceMalta
After a period of intense scrutiny that included a brief spell on the Financial Action Task Force’s grey list in 2022, Malta’s financial services sector has entered a new phase of sophistication. “The sector has matured to a point where today, strategic focus matters more than volume” says Bernice Buttigieg.
Over the past few years, Malta’s financial services sector has achieved a remarkable level of sophistication which has allowed a stronger focus on more strategic sectors and a refinement of the services Malta is best positioned to offer.
Dr Buttigieg has been part of FinanceMalta since 2008 and in 2023 was appointed as Chief Strategy Officer. The past eighteen years have given her a front-row seat to the evolution of Malta’s financial services sector.
In her opinion, the brief period of regulatory scrutiny accelerated improvements across the board, from strengthened compliance frameworks to enhanced supervisory practices and legislative refinements which laid the groundwork for Malta’s global repositioning.
“More than a setback, Malta’s grey listing was a catalyst that forced us to address gaps in transparency and governance to ultimately reinforce our credibility.”
FinanceMalta itself, a public-private initiative promoting the country as an international financial centre, has been instrumental in raising Malta’s profile abroad. The sector contributes 8.2% of Malta’s total real gross value added and a workforce 21.6% larger than in 2020.
A key development was the establishment of the Malta Financial Services Advisory Council (MFSAC) in 2021, a public-private body designed to set and implement a long-term strategy for the sector. Since its launch three years ago, around two-thirds of the projects in its roadmap have been initiated or completed, spanning banking, insurance, digital finance, funds, and pensions.
Sector-specific working groups have reduced fragmentation across the ecosystem, aligning regulatory policy, legislative reform, and industry practice. Initiatives have ranged from aircraft leasing legislation to trust regime enhancements, all carefully calibrated to international standards.
The results of this strategy are increasingly evident. Malta’s annual FinanceMalta conference, held last November, reflected an industry more confident and outward-looking than in previous years. Discussions spanned fintech, ESG integration, artificial intelligence, and private wealth structures, demonstrating a level of maturity and self-awareness that Dr Buttigieg describes as “not always present in the past.”
Malta’s approach is now defined by niche specialisation rather than broad-based expansion. Fintech remains a priority, building on the country’s early adoption of the Virtual Financial Assets Act.
While initial legislation positioned Malta as a pioneer in digital assets, the focus has shifted towards alignment with EU-wide frameworks such as the Markets in Crypto-Assets Regulation and the Digital Operational Resilience Act. Maintaining innovation while meeting higher expectations for governance and operational resilience is central to sustaining investor confidence.
In funds and asset management, Malta continues to leverage EU passporting rights, with developments such as AIFMD II introducing greater flexibility.
Notably, alternative investment funds domiciled in Malta can now appoint depositaries in other EU states where local services are limited, a practical solution for a small jurisdiction with a constrained domestic depositary market. Although this stops short of full passporting, it materially improves operational viability.
Private wealth and family office structures have also become a key focus. Regulatory refinements now support the establishment of single family offices under proportionate supervision, complemented by fiscal incentives to attract senior talent.
“The aim is not volume but the creation of a competitive ecosystem supported by legal, fiduciary, and wealth management infrastructure,” notes Dr Buttigieg.
Captive insurance and reinsurance are also becoming central to enterprise risk planning. Malta’s cell company structures, EU passporting, and English-speaking regulators attract mid-sized captives, while insurance-linked securities and alternative risk transfer offer high-potential niches combining insurance and fund regulation.
Underlying all these developments is a recognition that performance alone is insufficient.
“Perception is critical. Past criticism pushed us to seek more transparency and better governance and today’s collaborative framework established by MFSAC reflects a shared commitment to long-term credibility. Our ambition is to be a sophisticated and reliable partner in global finance.”
This March, Malta hosted the World Alliance of International Financial Centres’ Extraordinary General Meeting.”
“Besides being a personal highlight given that I am a member of the WAIFC Board, hosting this event was a significant honour for Malta and it continued to reflect the fact that our collective effort in reinforcing Malta’s reputation for reliability is bearing results.”
Dr Buttigieg is convinced that Malta’s recalibrated strategy highlights how the jurisdiction has evolved.
“Malta has clearly learned from its challenges and today, the country aims not to be the largest financial centre, but one of the most sophisticated and dependable.”
“If we want to thrive on credibility, the message is clear: perception now matters as much as performance.”
