The Institute of Financial Services Practitioners today said is very concerned about the events that have unfolded over the past week, which will undoubtedly result in the questioning of our island’s reputation and consequently have a detrimental impact on its attractiveness as a domicile of choice for international investors.

In particular the IFSP, on behalf of its 400 plus members (who in turn represent thousands of employees), is particularly concerned that the ethical fibre of the entire financial services industry in Malta is being called into question in such a facetious manner. 

"For the sake of the entire country, the responsible institutions and law enforcement agencies should fulfil their functions and be held accountable for their actions," it said.  The IFSP wanted to make it very clear that the rule of law is key to the proper functioning of a country, particularly a financial services centre. The rule of law is very much the basis of our country’s democracy, as entrenched in the Constitution.

It is essential that the responsible institutions and law enforcement agencies should effectively, and in a timely manner, take all necessary steps to ensure that the law is enforced, or our country's reputation will be irremediably tarnished. Each of the State’s institutions and authorities should uphold the powers vested in them in terms of law. This is essential to restore the stability the country needs in order to function effectively, which stability has been disturbed by the current state of affairs.

It is this very instability, also caused by the manner in which recent allegations have been handled by our institutions and law enforcement agencies, that is threatening our financial services industry, which has over the years become one of the pillars of the Maltese economy, the IFSP said.

The financial services industry is one of the fastest growing sectors of the economy and has made a significant contribution to the cosmopolitan feel that we have come to associate with Malta since it operates as a major source of attraction for foreigners to set up, work and live on the Island. The financial services industry has been painstakingly built by practitioners since the 1980s and over the years Malta’s reputation and stability has remained untarnished and solid.

"We are currently facing a situation where the country’s reputation is at stake and politicians should be aware that this may have long-term effects on the industry, which industry, once lost to the competition, will be very difficult to recoup, and which will have an ongoing and domino impact on the remainder of Malta’s economy."

The IFSP said it is concerned that there now appears to be a breakdown of the rule of law, and we should not underestimate the impact which this has on foreign investors who are investing their money and time in our country, thereby helping to generate employment and to finance the country by paying taxes. The right type of investor, the type of investor that we want to attract to Malta, takes ‘country reputation’ very seriously and undertake their own checks on the country before deciding to proceed. 

The IFSP urged all competent authorities and law enforcement agencies to use all the powers vested in them in terms of law to investigate any and all allegations, and ensure that the law is enforced. 

In another statement, the Malta Union of Banking Employees (MUBE) said: "In support of Malta’s strong reputation of being a stable and reliable hub where the Banking and Finance Industry prospers, The Malta Union of Bank Employees - MUBE appeals to all relevant Institutions to ensure they conduct their business with integrity, consistency and efficiency.

MUBE believes that anything short of that could jeopardize our nation’s credibility and pose a potential risk to the country’s future wellbeing. MUBE also insists that ‘partisan politics’ should not take centre stage in order to allow a free democratic process to rule during these difficult times. Let’s be clear,  we all have an obligation to ensure that the course of justice is not  ‘thwarted’ and that should only be about establishing the facts, verifying them and following up with decisive actions by acting accordingly for the benefit of our country’s reputation.

In this regard, MUBE insists that caution is to be exercised in how the situation is approached whilst we should all continue to work to attract serious investors to support and secure the jobs that matter in one of the most important sectors of the Maltese economy."