Fund-amental Values: Interview With MASA Chair Anabel Mifsud

Anabel Mifsud has been the chair of the Malta Asset Service Association (MASA) since 2022, eight years after she initially became involved within the Association. She told FinanceMalta that the association had come a long way and that the future for the sector was looking bright.

Much has happened since the Malta Asset Service Association (MASA) was set up by two entities in 2003: HSBC Global Asset Management (Malta) and Bank of Valletta subsidiary Valletta Fund Management.

The vision of the two original members has come to fruition and there are now some 50 members representing the whole industry: lawyers; fund administrators; asset managers, depositories; and audit firms, to name but a few.

This mirrors the growth of the sector, which has carved out a niche for itself alongside long-established jurisdictions which host thousands of funds, focussing instead on becoming a centre of excellence when it comes to specific technical expertise.

The role of the association is vital. It was originally set up as a channel of communication between providers, the government and the regulator, but its remit is now much wider: the industry needs to be kept abreast of all that is happening in the sector, from developments in other jurisdictions to upcoming regulations that might have an impact. In fact, MASA is also a member of the European Fund and Asset Management Association, EFAMA.

Ever vigilant of its role in the growth of the sector, MASA worked closely with FinanceMalta, helping to promote the jurisdiction.

"We were always aware of the established jurisdictions; for example, Ireland and Luxembourg currently cover 46% of all EU net funds. Malta is not trying to compete with them but to find its own complementary niche. After all, we fall within the same EU regulatory frameworks and have the same passporting rights. But our strength comes from our agility," she said.

Indeed, Malta has always prided itself on its strength as a robust financial services ecosystem, dedicated to innovation, and high standards of service and responsiveness, based on relationship-driven models.

"We believe that our size is not a limitation but an advantage. For example, it is easy to pick up the phone and speak to someone you know to find a solution, and the regulator is also eager to listen and discuss concerns and future innovative products," she added.

This approach has resulted in the regulator, the Malta Financial Services Authority (MFSA), launching new frameworks for new products, such as Notified PIFs - which have the added advantage of being self-managed. Interest in this product has been very encouraging, with regular steady launches over the past year since the Notified PIF could also be set up as a self-managed structure.

MASA also worked with the MFSA on other innovations over the past year or two, such as the framework for special limited partnerships, the Family Office regime and even getting tokenisation going.

Some of the sector's most competitive approaches have already paid off: the regulator's early foray into digital assets - becoming a leader in this field - resulted in Malta being the home of the biggest Alternative Investment Fund investing in this asset class.

"I was recently at a conference, and as soon as you mention Malta, Malta's efforts and success in the digital assets space comes up. We have a very positive reputation there..." Ms Mifsud said.

"And the development of tokenisation is of great interest as it will open the way for investment in specific illiquid assets, and easier transfer of units in funds among other uses."

The sector is made up of a variety of fund frameworks but the majority of funds set up in Malta are Professional Investor Funds (PIFs). She also noted that 91% of funds set up in Malta were administered locally, which is a matter of choice not regulation in most cases, also showing the positive evolution of the jurisdiction as an operational servicing centre. Ms Mifsud in this regard highlighted the opportunity Malta has to become a centre for operational excellence for servicing funds based in other jurisdictions.

"It is an advantage to have an English-speaking administrator in your own time zone, especially if you are a European-based fund manager! This is all important for Malta as it is a value-added opportunity, and one which is very sustainable from an economic and environmental point of view."

Malta's recently launched economic vision for the period until 2050 is based on high added-value activities, and within this, asset management offers a distinct pillar. The ecosystem is already in place, offering top skills, and it has clear potential for expansion.

Indeed, Vision 2050 is based on having a future which appreciates the importance of quality over quantity, the latter putting considerable pressure on everything from infrastructure to housing.

"Malta is clearly looking at ways to focus on sustainable growth rather than merely increasing volumes, and - given the need to maximise human resources - productivity is a key word in the Vision 2050 approach," she said.

What does this mean for asset management? Leveraging EU passporting could create opportunities beyond Malta's borders, allowing it to export its expertise. This would also strengthen the country's shift towards high added-value economic development.

"We have a good reputation as a credible, specialised servicing jurisdiction and asset management could help to reinforce our positioning," Ms Mifsud said.

Given the number of changes in this dynamic area, MASA's role as a channel of communications becomes more important, and it holds regular meetings with the MFSA and the Financial Intelligence Analysis Unit, as well as other stakeholders such as the Institute for Financial Services Practitioners.

"MASA is very willing to become more involved with policymaking. Our members are the ones that deal directly on a daily basis with managers/promoters with structures in Malta, as well as having insight as to future developments and requirements," Ms Mifsud said.

The various levels of engagement required internal structures and MASA has a fund administration subcommittee and a stockbrokers' subcommittee, in addition to its executive committee of seven people, with a regulatory subcommittee and an asset management subcommittee established recently.

Its membership of EFAMA is also instrumental when it comes to keeping abreast of international developments, with MASA now also represented on some of its task forces and standing committees. Ms Mifsud, as the MASA chair, is also on the EFAMA board.

"As a small jurisdiction we should constantly continue advocating the EU on the need for proportionality in everything that it regulates and EFAMA is an important lobbying body through which we can voice our position," she said.

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