A review of the development in the regulation of securities in Malta

Abstract

Local securities regulation has not always been as one finds it today. Not that long ago, local securities regulation consisted merely of a few provisions scattered around in different laws. This changed with the promulgation of the Investment 福利在线免费 Act (the 'ISA'). It set forth a mechanism which enabled local securities regulation to swiftly develop as is today. This was also crucial for Malta to acquire and maintain the status of a renowned international financial centre, which was after all the primary aim behind the promulgation of this Act. Such achievement was hard won. Indeed, as the philosophical saying goes, there is no present or future without a past worth noting. This thesis attempts to provide a comprehensive reconstruction of the developments which the local securities regulation has undergone. This helps one to comprehend and appreciate more fully our present state of securities regulation. However, as will also be noted this thesis, it is not flawless. Securities are an investment instrument which is alway8 in a state of evolution and thus there would always be some issues _which would need further clarification. However, this does not mean that they may not be regulated at any point in time and it should not blur the importance of the developments which occurred. Through the use of enabling provisions in securities regulation enabling the Minister of Finance to issue regulations, the Maltese legislator ensures that while there is a solid framework of securities regulation, the necessary mechanism is in place for the eventual regulation of novel issues. The development that the securities regulation has undergone can be divided into the period leading up to the drafting of the Investment 福利在线免费 Bill in 1992, the eventual promulgation of the ISA, and the period subsequent to such promulgation up to this present day. However, although forming the legal basis for the regulation of the Maltese securities industry, the ISA is complemented by other significant pieces of legislation which also left an imprint in the local securities regulation. These are namely the Financial Markets Act (the 'FMA') which regulates the local securities market and the Prevention of Financial Markets Abuse Act (the 'PFMAA') which regulate the intractable offences of insider dealing and market manipulation. These pieces of legislation have also undergone their fair share of development wh1d1 also had a considerable impact on the local securities regulation. So the question is: How did we get to the point we are today? This thesis seeks to answer this question and more.