Malta Financial Services Authority rejected EU Commission report

Source: Xinhua| 2017-05-23 23:00:46|Editor: yan
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VALLETTA, May 23 (Xinhua) -- The Malta Financial Services Authority (MFSA) has strongly rejected claims by a European Commission recommendation report saying that Malta's ability to supervise internationally-oriented business was under pressure, local media reported on Tuesday.

The report questioned the ability of a relatively small supervisory authority to oversee a large system, for example, in the insurance sector and banking sectors.

However, MFSA Chairman Joe Bannister told local media that for months the authority had been co-operating with regulators in other EU jurisdictions whenever an insurance company wanted to offer services there.

According to the European Insurance and Occupational Pensions Supervisory Authority (EIOPA) decision made in January 2017, a licence was only given following receipt of feedback from the relevant regulators, he added.

Furthermore he stressed that the MFSA would have to approve any activities to be added in further countries of operation.

He stated that what the Commission is referring to when they say "effective supervision" is something that the MFSA has been doing since Malta's accession to the EU.

The comments were made following the recent release of what have been dubbed "the Malta Files," documents which show how Malta operates a tax system where companies pay the lowest tax in the EU amid accusations that Malta is being used for tax evasion.