The Malta Financial Services Authority (MFSA) is consulting on changes to its powers in order to “strengthen the process” for settlement agreements with individuals under investigation for potential regulatory breaches.
Currently, the MFSA Act does not explicitly give the regulator the authority to enter into settlement talks and the watchdog is now looking to change that.
This would apply in instances where the regulator and the person or people in question both agree on the terms of a settlement.
The MFSA said: “It must be stressed that any settlement agreement reached will still always involve the imposition of an administrative measure.
“However, resolving investigations by means of a settlement agreement will ensure that investigations are concluded in a more efficient manner, safeguarding further the general interests and legitimate expectations of consumers of financial services, which is a core function and objective of the MFSA.”
The Maltese regulator had already concluded a consultation on settlement policy which will be developed further in the current draft legislative move.
The consultation will close on 14 March 2022.