https://www.um.edu.mt/library/oar/handle/123456789/1893 Mon, 01 Jun 2026 15:01:46 GMT 2026-06-01T15:01:46Z https://www.um.edu.mt/library/oar/handle/123456789/143463 Title: AML enforcement vs. constitutional rights in Malta : a comparative analysis Abstract: This dissertation explores the constitutionality of administrative fines imposed by the FIAU under Article 13 of the PMLA, examining whether the current enforcement system aligns with Malta’s constitutional guarantees of due process, fairness, and the separation of powers. It also addresses the increasing legal debate about the FIAU’s dual function as both investigator and adjudicator and whether this concentration of authority violates the principles of impartiality and independent judicial protection outlined in the Maltese Constitution. Through a doctrinal and comparative approach, the dissertation analyses relevant statutory provisions, constitutional case law, and academic commentary, while comparing Malta’s framework with those adopted in the United Kingdom, Italy, and Liechtenstein. It considers the availability of appeal mechanisms, the independence of decision-making bodies, and the degree of judicial scrutiny afforded to administrative sanctions. The research reveals that while administrative enforcement offers flexibility and efficiency in addressing financial misconduct, it poses potential risks to constitutional rights when not accompanied by adequate procedural protections. While aiming for reasonable policy goals, the Maltese system has some worrying issues. This is due to the lack of a clear division between investigation and decision-making, the narrow range of judicial review, and unclear rules about whether the penalties are fair. The dissertation concludes that legislative clarification and procedural reform are necessary to strengthen accountability, ensure fairness, and enhance compliance with constitutional and European human rights standards. It proposes the establishment of a more independent review mechanism, clearer criteria for fine determination, and a more transparent appeals process. These reforms would preserve the effectiveness of the antimoney laundering framework while restoring full constitutional compatibility and public confidence in the FIAU’s enforcement process. Description: M.A. Fin. Serv.(Melit.) Thu, 01 Jan 2026 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/143463 2026-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/143461 Title: Sustainable finance disclosure regulation : an analysis of the impact on the Maltese financial sector Abstract: The Sustainable Finance Disclosure Regulation (SFDR) marks a crucial milestone in the European Union’s efforts to integrate sustainability into its financial markets, significantly affecting Member States (MSs), including Malta’s financial services sector. As a small but internationally oriented European Union member state, Malta presents a distinctive environment to explore the effects of this regulation. This dissertation examines the influence of the SFDR on regulatory adherence, investor behaviour, risk management approaches, and institutional strategies within financial service providers in Malta, while also shedding a spotlight on the challenges the implementation has created. The research employs a qualitative methodology, analysing EU regulatory frameworks and existing literature. Results indicate that the SFDR improves transparency and builds investor confidence by harmonising sustainability reporting, with the classification of investment funds under Articles 8 and 9 offering clearer distinctions of sustainability goals. Nonetheless, the categorisation process encounters issues due to ambiguous definitions, leading to difficulties in classification and potential misrepresentation. Moreover, the regulation pushes firms to embed Environmental, Social, and Governance (ESG) factors into their risk management systems and promotes enhanced collaboration between compliance, investment, and reporting departments. Despite these benefits, Maltese financial institutions confront noteworthy hurdles, including the difficulty and vagueness of SFDR directives, the lack of unified metrics, and the high costs associated with compliance. Smaller MSs are particularly vulnerable due to their limited resources for comprehensive data gathering and reporting. However, by aligning Malta’s financial sector with global sustainability standards, the SFDR strengthens the nation’s competitiveness and stature as a hub for sustainable finance. In summary, this dissertation sheds light on the balance between the challenges posed by regulation and the growth opportunities it creates, demonstrating how the SFDR encourages greater accountability and innovation in Malta’s developing financial landscape. Description: M.A. Fin. Serv.(Melit.) Thu, 01 Jan 2026 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/143461 2026-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139133 Title: The two sides of the capital maintenance rules : creditor protection and company sustainability Abstract: All major jurisdictions have laws protecting creditors' interests in cases of default or corporate insolvency. The Limited Liability Act of 1855 was a momentous legislative measure passed by the Parliament of the United Kingdom. Its objective was to promote corporate investment by restricting investors' liability. This event represented a crucial turning point in the development of corporation law, significantly influencing the environment for business and investment in the future. Since the establishment of limited liability companies, creditors who offer financial backing to incorporated entities have faced substantial risk. In this specific business context, lawmakers bear the responsibility of creating a conducive environment for commercial ventures. This involves protecting debt financiers to a degree that encourages their participation, among other duties. The legal capital regime is a corporate legal instrument that has traditionally been used to safeguard the interests of creditors. This regime consists of two components: (i) the distribution rule and (ii) the minimum capital rule. The distribution rule, also known as the capital maintenance rule, forbids the repayment of capital to investors and restricts a firm from distributing dividends or making payments to repurchase or redeem shares, unless in specific circumstances. The minimum capital regulation mandates that individuals who incorporate or register a business organisation must contribute assets with a value equal to or more than the stipulated minimum amount to the corporate asset pool. The laws primarily aim to safeguard the interests of creditors, while also addressing any disputes between creditors and opportunistic shareholders about the distribution of corporate funds. This thesis aims to discuss the legal background of capital maintenance doctrine and to argue why the antiquated rules do not serve their purpose with respect to creditor protection but rather serve as a costly and rigid structure deterring businesses from following better opportunities that would serve a wider audience. Alternative means of creditor protection will also be discussed. The thesis also aims to discuss the perspectives of creditors and shareholders regarding the capital maintenance doctrine and their expectations. Creditors expect comprehensive and timely settlements of their claims, but should one assume that all shareholders want is a distribution policy based on short-term vision or do they rather seek an increase in the value of the company and of their worth? The subject of Corporate Governance and Company Sustainability is a very important topic as it steers companies away from short-term results to ones that will reap benefits to wider audiences and last longer, promoting the going concern of companies. Description: M.A. Fin. Serv.(Melit.) Mon, 01 Jan 2024 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139133 2024-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139101 Title: A critical examination of the preventive restructuring framework introduced by the Pre-insolvency Act, 2022 Abstract: The main focus of this study is the viability of the preventive restructuring framework established by the Pre-Insolvency Act (‘PIA’) as a proactive alternative to traditional insolvency proceedings and its potential impact on corporate economic recovery, particularly in the post-COVID-19 era. The principal discussion analysed the relationship between the ‘old’ framework under the Companies Act and the new framework introduced by the PIA. A comparative analysis with other jurisdictions, including a detailed exploration of insolvency and restructuring frameworks, offered some salient points of comparison and emerged promising aspects and challenges. While the PIA framework demonstrates potential feasibility in providing distressed companies with options to restructure debts and sustain business operations, concerns linger regarding its affordability, sustainability, stakeholder acceptance, and scalability. These aspects are crucial for the framework's success, necessitating ongoing dialogue, collaboration, and stakeholder engagement. Addressing these challenges requires investment in administrative capacity, digital infrastructure, and specialised training programs tailored to legal professionals and restructuring experts. Innovative funding mechanisms, such as public-private partnerships and venture capital investments, can alleviate financial constraints and promote greater participation in restructuring proceedings. Regular evaluation and monitoring of the framework's performance, coupled with impact assessments and stakeholder feedback, are imperative for iterative improvements and alignment with broader economic recovery objectives. The study also explored the hypothesis that increased regulation, particularly for entities operating in regulated markets, could mitigate factors contributing to corporate insolvency. By integrating enhanced regulation with pre-insolvency frameworks, companies could receive vital support and infrastructure necessary for sustainable business operations. Ultimately, while Malta's pre-insolvency framework offers a promising alternative to traditional mechanisms, attention to these critical areas is essential to maximise its efficacy. Description: M.A. Fin. Serv.(Melit.) Mon, 01 Jan 2024 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/139101 2024-01-01T00:00:00Z