The Malta Financial Services Authority (MFSA) has issued a
feedback letter following a series of supervisory inspections
carried out between 2020 and 2024. The inspections focused on
investment services providers (ISPs) falling under
the scope of the Market Abuse Regulation (EU) No 596/2014
(MAR).
The review highlights areas where standards have improved, while
identifying several persistent weaknesses in the
prevention, detection, and reporting of market abuse.
Summary of Inspections
Since 2020, the MFSA has carried out on-site inspections
with over 80% of Malta Stock Exchange member firms. These
inspections covered a broad set of obligations under MAR, including
market soundings, detection and reporting of suspicious
transactions, training, staff dealing, investment recommendations,
and record-keeping. While some progress was noted since earlier
compliance meetings, the Authority observed that many ISPs still
fall short of fully meeting regulatory expectations.
