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Strengthening governance practices of TCSPs in the EU's smallest member state
Journal of Financial Compliance,
8
(1),
19-31
(2024)
Abstract
In Malta, Trust and Company Service Providers (TCSPs) are subject to sector-specific legislation and regulation, overseen by the Malta Financial Services Authority (MFSA) responsible for their authorisation and prudential supervision. TCSPs act as gatekeepers to Malta's financial system, playing a pivotal role in ensuring the integrity of financial services. The paper evaluates the outcomes of the MFSA TCSP governance and compliance thematic review within the context of financial supervision in Malta. It aims to: (a) analyse international reports on TCSP risks, informing the rationale for sector regulation; (b) explore the significance of thematic reviews in the MFSA's supervisory framework; (c) evaluate governance and compliance importance in the MFSA's supervisory approach and (d) examine principal findings of the review and their sector implications. Contributing to the debate on the nature of financial supervision, the paper argues that the TCSP governance and compliance thematic review underscores a growing recognition among TCSPs of the need for robust compliance culture. However, it highlights persistent deficiencies warranting attention. This academic study sheds light on TCSP regulation and supervision in Malta, emphasising the oversight approach in the EU's smallest member state.
Keywords: regulation; supervision; TCSP; MFSA; compliance; EU
The full article is available to subscribers to the journal.
Author's Biography
Christopher P. Buttigieg is the Chief Officer responsible for Supervision at the MFSA, a member of the Board of Supervisors of the European Banking Authority (EBA) and European Securities and Markets Authority (ESMA), was the Chair of the ESMA Data Standing Committee (until December 2022) and is currently the Chair of the ESMA Proportionality and Coordination Committee. He has a PhD in law studies from the University of Sussex, focusing on financial regulation, and is an Associate Professor in the Banking and Finance Department of the University of Malta. Buttigieg has over 24 years of experience in financial regulation and supervision.
Petra Camilleri is the Deputy Head of the Trust and Company Service Provider (TCSP) Supervision Function and has over ten years of regulatory experience in the field of trusts and company services providers. She is a lawyer by profession, having graduated with a Doctor of Laws from the University of Malta, and subsequently obtained a master's in commercial and corporate law from the University of London. She is currently responsible for the management and oversight of the supervision team, while also representing the MFSA in various standing committees and working groups, both in Malta as well as with foreign counterparts. She was involved in the transposition of the Anti-Money Laundering Directive in Malta, specifically vis-à-vis the setting up of the Trusts Ultimate Beneficial Ownership Register, and has also contributed to other legal and regulatory drafting projects relating to trustees and company service providers.
