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Competing in Global MarketsThe New Normal
FinanceMalta6th Annual Financial Services Conference
Kenneth FarrugiaChairman - FinanceMalta
26th April 2013
HONOURABLE MINISTER OF FINANCE, YOUR EXCELLENCIES, DISTINGUISHED GUESTS
LADIES AND GENTLEMEN GOOD MORNING, AND WELCOME TO FINANCEMALTA’S 6TH
ANNUAL FINANCIAL SERVICES CONFERENCE.
A PARTICULAR WARM WELCOME TO OUR FOREIGN GUESTS PRESENT WITH US HERE
TODAY. IT IS GIVES ME IMMENSE PLEASURE TO WITNESS THIS LEVEL OF
PARTICIPATION AS THIS CONFIRMS THE INCREASING INTEREST BY DOMESTIC AND
INTERNATIONAL OPERATORS IN THIS FAST GROWING INDUSTRY.
AS THIS IS THE 6TH CONFERENCE SINCE FINANCEMALTA’S SETUP IN 2007, WE HAVE
GIVEN SIGNIFICANT THOUGHT TO THE TITLE AND CONTENT OF THIS YEAR’S
CONFERENCE. COMPETING IN GLOBAL MARKETS – THE NEW NORMAL IS IN ESSENCE A
REFLECTION OF THE STATE OF PLAY OF THE INDUSTRY WHICH HAS BEEN GRAPPLING
WITH ECONOMIC , REGULATORY AND MARKET UNCERTAINTIES.
IN FACT, IF PICTURES COULD SAY A THOUSAND WORDS, THE NEXT SLIDE SAYS IT ALL AS
IT IS IN MY VIEW A TRUE REFLECTION OF THE MACRO AND MICRO ECONOMIC
ENVIRONMENT OF THE INDUSTRY
2
Europe in 2012
Year on Year Debt-QuakeA decade of re-regulation
Economic Growth
ChallengesQuo – Vadis?
IT IS IN MY VIEW A TRUE REFLECTION OF THE MACRO AND MICRO ECONOMIC
ENVIRONMENT OF THE INDUSTRY
CLEARLY THE EUROZONE IS SOMEWHAT GRIPPED BY PERIODIC DEBT-
QUAKES WHICH IN TURN HAS BROUGHT ABOUT SIGNIFICANT
ECONOMIC GROWTH CHALLENGES DRIVEN AMONGST OTHERS BY
AUSTERITY MEASURES AND UNEMPLOYMENT.
IN PARALLEL, A FTER MORE THAN A DECADE OF DEREGULATION WE ARE
NOW MOVING TO WHAT IS SEEMINGLY A DECADE OF REREGULATION AS
A RAFT OF NEW REGULATIONS AND REGULATORY REQUIREMENTS
PANNING OUT OVER THE NEXT 8-10 YEARS
AT THE CENTRE OF ALL OF THIS ARE THE VARIOUS FINANCIAL SERVICES
INSTITUTIONS WHICH ARE TRYING TO MANAGE THE SHORT
TERM IMPLICATIONS OF THE MARKET DYNAMICS BROUGHT ABOUT BY
THE NEW REGULATORY REQUIREMENTS AND POSSIBLY MISSING OUT ON
THE LONGER TERM TRENDS THAT ARE SHAPING THE INDUSTRY AND
THEREFORE THE COMPETITIVE LANDSCAPE.
Today’s ConferenceInteresting blend of topical themes
• Morning Session
Opening Address - The Hon Professor Edward Scicluna
- Minister of Finance
1. Malta’s Financial Services Industry – Challenges and Opportunities
2. Outlook for the European Economy
3. Panel Discussion - The Banking Union
4. Panel Discussion – Malta’s Opportunities Beyond Europe
5. The Trends and Challenges of Corporate Governance
6. Panel Discussion - The realities of setting up in Malta
WITH THIS CONTEXT IN MIND, FOR THIS YEAR’S
CONFERENCE FEATURES WHAT IS IN MY VIEW A
HIGHLY INTERESTING AND TOPICAL BLEND OF
THEMES WHICH HAVE BEEN VERY CAREFULLY
SELECTED TO ADDRESS THE CORE ISSUES THAT ARE
OR WILL IMPACT OUR INDUSTRY.
REFER TO SLIDE FOR LIST OF TOPICS
Today’s ConferenceInteresting blend of topical themes
• Afternoon Session
Workshop A - ETF’s and Asset Management
Workshop B - Trusts and Foundation
Workshop C - Opportunities for the Malta Stock Exchange
Tax Policies and Economic Growth
Closing Address - The Hon Dr Chris Cardona
- Minister of the Economy, Investment and Small Business
I AM CONFIDENT THAT YOU WILL FIND THE
CONTENT TO BE HIGHLY INTERESTING AND
RELEVANT TO YOUR RESPECTIVE FIELD OF
OPERATION.
.
55
Malta’s Financial Services Industry
- Performance of the industry over 2012
- Key initiatives and plans going forward
MOVE QUICKLY ON TWO LINE ITEMS TAKING YOU THROUGH THE PERFORMANCE OF
THE INDUSTRY IN 2012 AS WELL AS FINANCEMALTA’S KEY INITIATIVES AND PLANS
GOING FORWARD
Malta’s Financial CentreFast Growing Funds Sector
Source: Malta Financial Services Authority
Growth driven by new fund set-ups
and redomiciliations from nonEU jurisdictions.
Development of a Cluster
� 581 Funds
� € 9.79 billion NAV
� 113 Investment Services Licences
� 26 Fund Administrators
� 6 Custodians
Funds Domiciled in Malta
165214
325366
409
547
581
0
100
200
300
400
500
600
700
Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec - Dec-12
6 % IN THE NUMBER OF FUNDS
ASSETS HAVE INCREASED BY 18%
Malta’s Financial CentrePresence of key international insurance operators
CY 2004: 8 insurance operatorsCY 2012: 59 insurance operators
APART FROM THE GROWTH IN THE NUMBER OF OPERATORS WHICH
HAS GROWN MORE THAN SEVEN FOLD IN 2012.
MOREOVER ON THE BASIS OF THE RESULTS OF A SURVEY RELEASED
ON THE 16TH APRIL GROSS PREMIUMS WRITTEN REACHED EURO 1.7
BN WITH THE TOTAL CASH AND INVESTMENTS REACHING €3.5
BILLION IN 2012 WHICH COMPARES STRONGLY WITH €1,17 BILLION
IN 2011.
8
A Jurisdiction for BankingStrong Presence of International Banks
8
THE MALTESE BANKING SECTOR HAS CHANGED SIGNIFICANTLY OVER THE LAST 15
YEARS, HAVING BEEN TRANSFORMED FROM A TIGHTLY PUBLICLY OWNED SECTOR
INTO ONE OF LIBERALISATION AND FOREIGN OWNERSHIP
9
Trust SectorSteady Growth
• 131 Trustees in terms of the Trusts and Trustees Act
Number of Trustees (Trust and Trustees Act)
98106
117123
131
0
15
30
45
60
75
90
105
120
135
2008 2009 2010 2011 2012
MALTA HAS ESTABLISHED ITSELF AS A REPUTABLE TRUST JURISDICTION AND THE
NUMBER OF AUTHORISED TRUSTEES IS INCREASING YEAR-BY-YEAR.
AMONG THE COMPANIES OFFERING THEIR SERVICES IN MALTA ONE FINDS NOT ONLY
FIND A NUMBER OF LEADING FIRMS IN THE SECTOR, BUT ALSO A LARGE NUMBER OF
SMALLER FIRMS, LOCAL AND FOREIGN, THAT ASSIST WITH THE ESTABLISHMENT AND
ADMINISTRATION OF TRUSTS AND FOUNDATIONS IN MALTA.
International AttestationsGlobal Competitiveness Index 2012 – 2013
Rank out of 144 Countries
• Financial Market Development 15
• Soundness of the Banks 13
• Regulation of Securities Exchanges 12
• Quality of the Education System 16
• Quality of Math and Science Education 15
• Strength of the auditing/reporting standards 16
FinanceMalta’s Promotional Initiatives
Key Highlights and Plans Going Forward
11
12
• Events
- Conferences
- Exhibitions
- Round Tables and Breakfast Meetings
- Educational Clinics
• Alliances
- Malta Enterprise
- Malta Tourism Authority
- Chambers of Commerce
- Financial Services Associations
- Diplomats
Communication Platforms
• Technology- Website
- Podcasts and Webinars
- E-news
- SEO
• Media and PR- Key Sector Reports
- Joint advertising
- Thought Leadership Articles
- Press Releases
- Press Interviews
Conferences and Events29 National and International Initiatives
Malta
- International Tax Conference
- Fund Servicing Conference
- International Risk and Ins. Congress
- Strategic Business Seminars
- CCCTB Seminar
- FM Annual Conference
- Family Office Podcast
- Seminar for Consuls
- Seminar for Ambassadors
- Members’ Networking Events
- Mediterranean Economic Forum
- Presentations to International
Business Delegations
- Educational Clinics
Africa
- Hedge Funds World
- ME Business Delegation
Rest of Europe
France - EuroHedge
Italy - Business Mission
Luxembourg - European Captive Forum 2012
Switzerland - TransContinental Trusts
Switzerland - Swiss Asset Managers Seminar
Sweden - FERMA /FT event
UK - Captive Live
UK - City Week
UK - HFM Week
UK - FT Global IFC Conference
UK - Harrods Event
Asia
Hong Kong/ China - M.E Business Delegation
Asian Financial Forum
Participation in key sector country reports in collaboration with the leading media houses covering:
• Banking,
• Funds,
• Insurance
• Wealth Management
• Trusts/Foundations
Print Media Promotional InitiativesKey Sector Reports
Media Promotional Initiatives
Public Relations
• Journalists trip from Spain. UK, Germany, Russia and Dubai• Press conferences• Press releases in international media• Visits to a number of international press agencies
Advertising / Thought Leadership Articles• Adverts in key media publications/joint participation
• Thought leadership articles
CAREFULLY SELECTED KEY SECTOR PUBLICATIONS.
Technology - Internet PortalSearch Engine Optimisation
Website Statistics
9,857 11,579 12,486 13,038
19,642 19,89617,184 19,450
76,172
46,960
0
10000
20000
30000
40000
50000
60000
70000
80000
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Total 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total 2012
Nu
mb
er
of
Vis
its
New
Visitors
61.90%
Return
Visitors
38.90%
62% YEAR ON YEAR INCREASE IN WEBSITE VISITS BUT WHAT’S MORE INTERESTING IS
THAT 62% OF THESE VISITS ARE NEW. THIS INCREASE IS ALSO THE RESULT OF THE
SOCIAL MEDIA PLATFORMS THAT WE VENTURED INTO OVER THE COURSE OF LAST
YEAR.
+ =
� Open rate ranging from average of for the year, up to
� A total of
� Open rate ranging from average of for the year, up to
� A total of
� Open rate ranging from average of for the year, up to
� A total of
� Open rate ranging from average of for the year, up to
� A total of
� Open rate ranging from average of for the year, up to
� A total of
� Open rate ranging from average of for the year, up to
� A total of
Making the best out of
Between March 2012 & April 2013…
� people contacted
Between March 2012 & April 2013…Between March 2012 & April 2013…Between March 2012 & April 2013…
� people contacted� people contacted� people contacted
Between March 2012 & April 2013…
� people contacted
Making the best out of
Between March 2012 & April 2013…
� people contacted
Making the best out of
Between March 2012 & April 2013…
� people contacted
� Open rate ranging from average of for the year, up to
LinkedIn Twitter Facebook
Social Media
Online Marketing Platforms
3. Concluding Remarks
Concluding RemarksA Fast Growing Financial Sector
TRUSTS INSURANCE
Number of Trustees (Trust and Trustees Act)
98106
117123
131
0
15
30
45
60
75
90
105
120
135
2008 2009 2010 2011 2012
ASSET MANAGEMENT
BANKING
Malta’s Value PropositionManaging Our Strengths
CRITICAL SUCCESS FACTORS
• Human Resource Capability
• Responsiveness
• Cost Competitive
• Legal and Regulatory
Framework
• Accessibility to Regulator
KEY IMPERATIVES
1.Manage challenges in a timely manner
2. Supply of HR
3. Responsiveness of public sector entities
4. Strengthen the communication between the Industry, Regulator and Government - foster innovation
Ownership is Key
- Think Tank
INDUSTRY’S VALUE
PROPOSITION
INDUSTRY’S VALUE
PROPOSITION
INDUSTRY’S VALUE
PROPOSITION
INNOVATION
ensure the processing and ongoing servicing of investment services applications
is constantly efficient as this is a critical advantage
-ensure that the vision for the financial services industry is likewise embraced
by the various Government Departments interacting with the Industry - pivotal
to the growth of the
-financial services industry
-industry able to actively participate in the various consultation processes
leading to new regulations, legislation and policies affecting the industry
Going Forward in 2013
1. Strategic engagement – 3 year roadmap
2. Build on the initiatives organised so far
3. Micromarketing
4. Continue to leverage technology - Social media
- Webinars and Podcasts
- New website
FRESH LOOK
Acknowledgements
• Sponsors
• Government of Malta
• Management Team at FinanceMalta
• Malta Financial Services Authority
• Malta Enterprise and Malta Tourism Authority
• Members - Industry Practitioners and Operators
26April 25, 2013 26
Thank You
