FINANCIAL MARKETS

MamoTCV advises clients on the regulatory and supervisory requirements imposed on regulated markets, the rules on the admissibility to listing on a regulated market, regulatory requirements regarding listed financial instruments and disclosure of information by issuers or any other person subject to the Listing Rules. Our expertise in the field of financial markets regulation is complemented by our extensive experience in corporate law, which allows us to offer our clients a comprehensive service regarding transactions involving listed securities and companies quoted on the Malta Stock Exchange.  

 

In Malta, financial markets are regulated by and under the Financial Markets Act (Chapter 345 of the Laws of Malta). The Malta Financial Services Authority (“MFSA”) was appointed as the competent authority for the administration of the Financial Markets Act and as the Listing Authority, whose responsibilities include the authorisation the admissibility of financial instruments to any recognised list, to make Listing Rules and to ensure compliance with any requirements or conditions set out in such Listing Rules, and to act as the central competent administrative authority responsible for carrying out the obligations provided for in the Transparency Directive. The MFSA is also empowered to issue Financial Markets Rules to regulate and supervise regulated markets, central security depositories and other specified persons. 

 

Any entity which provides, or holds itself out to provide the services of a regulated market in or from within Malta must be in possession of an authorisation by the MFSA. The authorization, ongoing and transparency requirements, and provisions on passporting, are set out in regulations issued under Financial Markets Act, which (partly) transpose the relevant provisions of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (MiFID). 

 

At present, there is only one regulated market in Malta, namely the Malta Stock Exchange or Borża ta’Malta (the “MSE”). The management of the MSE lies with the Council of the Exchange, the functions and powers of which are also set out in the Financial Markets Act. The Bye-Laws issued by the authority of the Council of the Malta Stock Exchange provide for the administration of the MSE, membership of the MSE, trading, settlement and the central securities depository, admission requirements and disclosure standards. 

 

The operation of a central securities depository requires a written authorisation issued by the MFSA in terms of the Financial Markets Act. The MSE currently operates a Central Securities Depository which maintains the Register for each security admitted for a listing on the MSE; this service is offered for non-listed securities as well. 

 

The Prevention of Financial Markets Abuse Act (Chapter 476 of the Laws of Malta) implements the Market Abuse Directive (Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse)). It also caters for the transposition and implementation of the so-called “implementing measures” for the Market Abuse Directive.