Maltese companies continue to launch corporate bonds that are often oversubscribed within hours. Once seen as opaque and bureaucratic, Malta’s capital market now appears to be thriving. At the forefront of its development, WAYNE PISANI chairs the Capital Markets pillar within the Malta Financial Services Advisory Council’s (MFSAC) national strategy, a collaborative effort involving over 30 market players, including regulators, exchange operators, and advisors.
“Our work, ongoing for almost two years, is crucial as Malta seeks to establish an attractive and specialised capital markets hub. We aim to provide clarity, efficiency, and a competitive environment for market participants,” he explains.
Investor education and responsibility are central to this effort.
“A healthy capital market depends not only on good regulation but also on informed investors who understand both opportunity and risk. Investor confidence is built when the public can make sound financial decisions.”
Recent commentary has suggested that Malta’s bond market allows highly leveraged or weaker issuers to access financing more easily than banks would permit, drawing scrutiny even as investor appetite remains strong.
“What is clear is that Malta’s corporate debt landscape is entering a new era. Public and industry feedback has been critical, but our strategy seeks to move from a fragmented, niche market to one that is transparent, efficient, and internationally competitive.”
Strengthening financial literacy and accountability is therefore a priority. The Capital Markets working group has made investor education a cornerstone of reform, ensuring that retail investors, who remain a driving force behind local bond issuances, can better assess the risk–reward balance of their investments.
“Investor protection starts with knowledge,” adds Mr Pisani. “The market’s long-term sustainability relies on investors understanding that higher returns come with higher risks, and that diversification and professional advice are key.”
Malta’s financial services industry is undergoing rapid technological and regulatory change, making swift and coordinated action essential. Established in January 2021, the MFSAC brings together private sector and regulatory representatives with a shared goal: to craft a long-term strategy to future-proof the industry.
In March 2023, the Council launched a comprehensive strategy with 175 action points across nine working groups, covering regulatory reform, market infrastructure, identity management, tax modernisation, talent development, and payment systems.
Mr Pisani focuses on the capital markets pillar, a sector historically constrained by regulatory overreach, inconsistent rules, and a cumbersome three-tier listing approval process. The working group’s tasks include improving the operational environment, investor education, internationalisation, sustainable finance, and positioning Malta as a blue finance incubator.
“Our role is to improve Malta’s offering while keeping investor protection, market integrity, and financial stability robust,” he says.
Recent reforms have been significant. The MFSA now emphasises objective disclosure under the Prospectus Regulation, while prudential supervision and intermediary enforcement remain central to investor protection. Unwritten rules are being codified, and the former three-tier approval system has been streamlined into two tiers, with additional resources for Capital Markets Supervision.
“Applications are moving faster, and the market has more clarity than it ever had before,” says Mr Pisani.
With the regulatory groundwork laid, attention is turning to internationalisation and sustainability, key themes for Malta’s future market competitiveness. Educational campaigns and collaboration with market operators are being explored to reinforce due diligence, transparency, and ethical participation.
The Capital Markets Internationalisation initiative, conducted with Simmons & Simmons, is mapping global opportunities and investor appetite. Findings, expected by Q4 2025, will guide connecting Malta’s capital market with investors across Europe and beyond.
“Internationalisation is not just an ambition. It’s about creating real pathways for capital and visibility for our issuers,” Mr Pisani emphasises.
Sustainable finance is another key reform pillar. The Malta Stock Exchange’s Green Market, launched in 2021, enables green bonds to be listed according to ICMA principles. MFSAC’s strategy aims to enhance reporting standards, MFSA review functions, and incentives for issuers and investors.
“Green bonds attract ESG-focused investors, improve transparency, and give Maltese funds a competitive edge. They’re central to Malta’s long-term economic and climate goals,” he explains.
The real estate sector is also adapting. Proposals for Real Estate Investment Trusts (REITs) are being refined with fiscal incentives to make Malta a more attractive destination for investors. The Tax Committee continues to assess these measures, balancing economic rationale with international competitiveness.
For investors, the changes translate into a clearer and more predictable market. While defaults remain part of the credit spectrum, codified rules, faster approvals, and professional oversight from regulators, intermediaries, advisors, and auditors have created a safer environment.
“All operators need to ensure financing structures, reporting, and risk assessment adhere to the highest standards,” he stresses.
Mr Pisani looks to the future with cautious optimism.
“We are tackling structural inefficiencies, enhancing transparency, and aligning investor protection with international best practice. Now the focus is on sustainable growth, innovation, and attracting new financial services entities to Malta. The fundamentals are strong, and the opportunities are real.”
The aspect Mr Pisani finds most compelling is balancing opportunity with responsibility.
“Watching companies raise capital efficiently, seeing investors make informed choices, and observing regulatory frameworks evolve strategically encapsulates the MFSAC’s and Malta’s broader ambition,” he reflects.
“The challenge is maintaining growth without compromise and fostering innovation without unnecessary risk. That balance depends on investors who understand, question and engage responsibly.”
“A mature market is one where informed investors and effective regulation evolve hand in hand. That is what makes Malta’s capital markets truly exciting.”
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