Malta Financial Services Authority publishes MAR inspection findings and calls on investment services providers to close control and reporting gaps

The Malta Financial Services Authority (MFSA) issued a summary of findings from supervisory inspections of investment services providers carried out between 2020 and 2024 on compliance with the Market Abuse Regulation (MAR), noting improvements in how some firms have embedded MAR obligations but highlighting persistent shortcomings requiring attention. The inspections covered a cross-section of firms licensed under the Investment Services Act and assessed the adequacy of systems, controls and procedures to prevent and detect market abuse. MFSA observed that a number of firms had strengthened internal frameworks and showed a stronger understanding of MAR requirements, but also found that internal procedures were not always updated or tailored to firm-specific risks, some firms had never submitted a Suspicious Transaction and Order Report (STOR) despite operating in trading environments where suspicious behaviour could occur, and MAR training was often generic and infrequent with gaps in staff understanding of individual responsibilities. MFSA expects all investment services providers to review their MAR compliance in light of the findings, update procedures and deliver targeted staff training. The full findings were communicated to licensed providers through a Dear CEO Letter, and MFSA said it will continue to monitor adherence through ongoing supervision and future inspections, with enforcement measures where necessary.