https://www.um.edu.mt/library/oar/handle/123456789/138766 Wed, 08 Apr 2026 06:56:38 GMT 2026-04-08T06:56:38Z https://www.um.edu.mt/library/oar/handle/123456789/139100 Title: The impact of regulations on AI in investment services : a comparison between the US and the EU Abstract: Artificial Intelligence (AI) is becoming an increasingly more popular tool within investment services. In fact, the use of AI has begun to alter many processes within investment firms. Traditional models are being replaced with more effective, efficient, and precise models. It has become important in areas such as regulatory compliance, anti-money laundering, customer services and support, algorithmic trading and portfolio management. However, the use of these programs also brings with it several ethical considerations and risks that need to be considered. Questions in data protection and cyber security, AI bias, accountability and liability, oversight, disclosure, and knowledge need to be addressed. After all, AI can be just as dangerous as it can be helpful. Regulation needs to be set-up by jurisdictions across the world to protect investors and the financial stability of the world. The dissertation addresses these developments in three ways. Firstly, it highlights the impact AI has had in reshaping the management of investment services. Secondly, it outlines the impact of regulation on AI in investment services. Finally, it compares the approaches taken by the European Union and the United States of America in their attempt at regulating AI in investment services. Ultimately, as AI becomes a more impactful tool within financial services, legislation needs to address any risks that may arise. Certain checks and balances need to be put in place to ensure that trustworthy AI is being developed. The AI Act has planted the seeds of regulation. However, it does not address the risk AI may bring to an investment firm. When addressing these risks, it is important that regulation is proactive and not reactive, balancing the need for innovation and development, while ensuring a trustworthy and secure financial system. Description: M.A. Fin. Serv.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139100 2025-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139088 Title: The application of consumer behaviour analysis in regulating disclosure requirements for insurance-based investment products in the European Union Abstract: The purpose of this thesis is to examine and criticise the extent to which legislators and financial regulators utilise consumer behaviour analysis in the application of disclosures for insurance-based investment products across the European Union. This research outlines the key disclosures found in the legislative framework related to the distribution of insurance-based investment products. It further explores how financial decision making can be made through mental heuristics along with the tools that can be used to capture such subconscious information. By then analysing case studies, this study concludes that the application of consumer behaviour in the creation of disclosures for insurance-based investment products is sorely limited. The benefits of consumer behaviour analysis are drawn from similar sectors and on this basis a proposal is made to ensure that human heuristics are considered by legislators and regulators to build more effective disclosure regimes. The study discusses that since the subconscious, natural reactions that consumers have to information dissemination are being largely ignored, despite a wider acknowledgement of the importance of considering mental heuristics, disclosures are not fulfilling their goals. This study provides legislators and regulators with a substantiated recommendation to establish disclosure requirements on unbiased, information gathered through neurophysiological tools. Description: M.A. Fin. Serv.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139088 2025-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139087 Title: Jurisdiction shopping for an investment services business : a comparative analysis of the regulatory landscape of an EU licence versus a non-EU licence Abstract: This dissertation presents a comparative analysis of the licensing frameworks of the Malta Financial Services Authority (MFSA) and the Mauritius Financial Services Commission (FSC) for investment service providers offering contracts for differences on an execution-only basis. The research focuses on three regulatory stages: 1. Authorisation and Licencing; 2. Conduct of Business Obligations and Ongoing Regulatory Compliances; and 3. Enforcement and Corrective Actions. Each stage is explored in detail through dedicated chapters, supported by in-depth legal and regulatory research in both jurisdictions. Following the individual jurisdictional analyses, a side-by-side comparison is presented to assess the similarities, divergences, and regulatory effectiveness. The MFSA is observed as a strong rule-based regulator with extensive requirements and supervisory expectations, whereas the FSC applies a more principles-based approach with limited detail on obligations. While the weight of the regulatory burden differs between the two jurisdictions, one key area of convergence is identified. Most prominently, both jurisdictions demonstrate closely aligned structures and powers in the area of enforcement and corrective actions, with only marginal differences. This highlights a common regulatory philosophy concerning the handling of breaches and supervisory intervention. Another point of convergence, which in essence simultaneously highlights divergence, is that most regulatory topics or elements align in the authorisation and conduct of business stages. However, Malta extensively covers more topics than Mauritius - for example, product governance is not addressed in the Mauritian framework. The points of divergence, where similar topics are included, lies in the scope and depth of requirements. The conclusion is that the approach in Mauritius is significantly lighter, with fewer requirements and less rules, detailed guidance and regulatory upkeep. In some aspects, the stricter philosophy of the MFSA’s regulatory approach, being rooted in and driven by European Union legislation, may be seen as a hindrance to business development and burdensome in a licensee's goal to achieve operational success. Conversely, the softer framework that the FSC provides may expose consumers to greater risk and may also create ambiguity for a licensee striving to maintain high compliance standards, as the absence of clear requirements hinders the ability to understand regulatory expectations and to ensure measures are in place to protect customers. Description: M.A. Fin. Serv.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139087 2025-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139085 Title: The Anti-Money Laundering Authority (AMLA) : a new approach to European banking supervision Abstract: Money laundering (ML) and terrorist financing (TF) pose a threat to the financial stability of the European Union (EU). Although the EU prioritises combatting ML and TF, its antimoney laundering and countering financing of terrorism (AML/CFT) framework did not adequately address evolving threats. Allowing member states (MS) flexibility in implementing AML/CFT directives led to regulatory arbitrage and inconsistent enforcement. In response, the European Commission (EC) introduced the Anti-Money Laundering Authority (AMLA) in 2021 to strengthen supervision and harmonisation. This study analysed AMLA’s establishment, role, objectives, structure, and anticipated overall impact. It assessed the shortcomings of the current EU anti-money laundering (AML) framework, which led to the need for centralised supervision. A comparative analysis of the United States’ (US) AML framework was conducted, evaluating its approach to AML regulation and supervision. This study also examined the impact of AMLA on EU banking supervision, particularly following the 2007–2009 global financial crisis, which exposed weaknesses in EU banking oversight. It analysed the roles of the Single Supervisory Mechanism (SSM), the European Central Bank (ECB), and the European Banking Authority (EBA), in harmonising regulatory standards. A comparative assessment of the US banking supervision framework highlighted its fragmented structure, strengths, and limitations. Although certain shortcomings remain, which are also addressed in this study, the findings revealed that AMLA’s centralised approach would foster a more coherent framework, enhancing cross-border coordination and ensuring consistent AML/CFT enforcement across MSs. In contrast, the US’s decentralised system offers flexibility but risks inefficiencies due to overlapping responsibilities. As AMLA’s direct supervisory functions will not take effect until 2028, its effectiveness remains uncertain. This study recommended measures to enhance AMLA’s role, including clarifying governance structures, expanding direct supervision, increasing EU budget contributions, and strengthening international cooperation. Description: M.A. Fin. Serv.(Melit.) Wed, 01 Jan 2025 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139085 2025-01-01T00:00:00Z