The Financial Markets Act and its effects on the capital market

Abstract

The primary objective of this thesis is to examine the main provisions of the Financial Markets Act and their impact on the workings of the market for capital in Malta. The thesis also attempts to provide the rationale behind the changes introduced in the Act as well as their relevance on Malta's financial services sector, and particularly on the Malta Stock Exchange, within the context of Malta's EU membership. Chapter 1 introduces the strategy adopted by the Government as regards its policy targets for Malta's financial regulatory structure. Chapter 2 traces the historical development of the present Authority, down from the original international business authority known as MIBA, through the Malta Financial Services Center, right down to the structure as it stands today, in its role as the single regulator for financial services in Malta. Chapter 3 provides a detailed analysis of the Financial Markets Act, highlighting the main concepts that were introduced by this Act, and the effects that these changes had on the local regulatory environment, as well as on the Malta Stock Exchange. Chapter 4 provides aspects of the current international debate with regards to the concept of the single regulator on the domestic level, as well as to its extension to a pan-European level. Chapter 5 is the concluding chapter and looks ahead at the challenges that must be faced by all the market players including policy-makers, the regulator, the Stock Exchange and investors themselves.