Boardroom Brief | MFSA’s Clare Farrugia on Malta’s Family Offices Proposition and the Road Ahead

Clare Farrugia is Head of Strategy, Policy and Innovation at the Malta Financial Services Authority (MFSA), where she leads work on strategic development, including regulatory framework initiatives relating to financial services in Malta, such as family offices.

In this edition of The Boardroom Brief, Clare discusses Malta’s growing family office sector, what shapes its proposition for international families and how the sector can develop as part of Malta’s wider financial services ecosystem. 

1. Since the joint MFSA-Residency Malta Agency communication was issued in December  2025, linking residency permits to family office structures, how has the way families  approach setting up in Malta changed?  

Since the December 2025 communication, we have seen a more integrated approach to  structuring and relocation. Previously, regulatory authorisation and residency considerations  were often viewed as two distinct, sequential processes. The new framework has encouraged  families and their advisers to consider these dimensions together from the outset. 

Importantly, it has also brought greater focus on substance, governance and the individuals  who will drive the operation in Malta. We are therefore seeing more strategic enquiries, with  families considering not simply what structure they can establish, but what an appropriate  operational presence should look like, including which functions should be located here and  how they should be governed. 

A sustainable family office proposition is ultimately about more than establishing a legal  vehicle. It is about creating a credible and appropriately governed presence, supported by the  right people, expertise and infrastructure. The alignment between the regulatory and  residency frameworks has helped reinforce that more substantive approach. 

2. What do you think are the main draws for families to set-up their offices in Malta and how  does this set Malta apart from other jurisdictions? 

Malta’s proposition is best understood as a combination of regulatory flexibility, a well established legal and business environment, access to talent, and the advantages of  operating within a stable EU and Schengen jurisdiction. 

From a structural perspective, Malta does not impose a single model for a family office.  Depending on the nature and scale of the activities, families may use a range of structures and vehicles, including holding companies, trusts, foundations or funds. This allows families to design a structure around their objectives rather than a predetermined template.  

Malta’s broader fiscal and mobility environment is also relevant for internationally mobile  families and executives. This includes an extensive network of double taxation agreements, a  recognised framework for cross-border wealth and business planning, and an effective fiscal system that also supports long-term wealth and succession. Qualifying senior professionals engaged within family office structures may also benefit from dedicated programmes  designed to support the attraction and retention of specialised talent. 

Equally important is the ecosystem, which includes a well-established professional services  sector and access to a highly educated English-speaking workforce. 

Ultimately, Malta’s competitive advantage lies in its ability to combine European regulatory  credibility with flexibility and accessibility. This can be particularly compelling for families  seeking either a long-term home for themselves, or a well-connected European base from  which to manage and oversee their wealth.  

3. Is there a common misconception about what it takes to establish a family office in Malta?  

A common misconception is that a “family office” is itself a standalone regulatory category or  licence that can simply be applied for. That is not how the framework operates and not all  structures within the family office may require regulatory approval. 

The MFSA regulates the activities being undertaken within the family office, rather than the  label attached to the structure. Depending on those activities, the relevant vehicle may be  subject to a type of authorisation. This could involve investment services, fund management  or another regulated financial services activity. A family office may, however, also incorporate  unregulated structures, whether domiciled in Malta or elsewhere. 

Early engagement with qualified advisers can ensure that the structure aligns with the family’s  objectives and proposed activities. 

4. How does the MFSA balance making the process easier for families with keeping the right  checks and balances in place? 

This balance lies at the heart of the MFSA’s broader regulatory philosophy. Our approach is  founded on proportionality and risk sensitivity with regulatory engagement calibrated to the  nature, scale, complexity and risk profile of the activity. 

This allows legitimate operators to navigate the framework efficiently. But proportionality is  not a synonym for leniency. Irrespective of the size of an applicant, individuals exercising  controlling or senior functions remain subject to rigorous fitness and properness  assessments, including their integrity, competence and financial soundness. This scrutiny  continues throughout the relationship with the Authority. 

Our objective is to create a regulatory environment that is predictable, efficient and  proportionate, without compromising supervisory standards. 

That is particularly important for Malta’s international positioning. The attractiveness of a  financial centre cannot be based simply on how easy it is to enter the market. Long-term  competitiveness depends on confidence in strong governance, credible supervision and  consistent regulatory standards. In that sense, effective regulation is not separate from  Malta’s proposition, but it is an important part of it. 

5. Where do you see the sector heading over the next few years, and what's next on the  MFSA's radar? 

We expect the family office sector to become increasingly sophisticated as international  families seek jurisdictions offering regulatory certainty, institutional stability, operational  flexibility and access to high-quality professional expertise. 

The more interesting question is how we move from viewing family offices simply as  structures to seeing them as part of a broader ecosystem encompassing wealth  management, investment, succession planning, philanthropy and other professional services. 

As the sector matures, we expect greater diversity in the structures and activities seeking  authorisation. The MFSA will continue to evolve its regulatory framework with the market,  strengthening supervisory capacity, investing in technological capability and deepening  cooperation with domestic and international counterparts.  

Looking ahead, family offices are expected to feature more prominently in the Authority’s  upcoming strategic cycle, as we consider how to keep the framework fit for purpose and  forward-looking. This will include consideration of how Malta can further strengthen its  proposition and work with the wider ecosystem to attract the right activity and build a  sustainable, high-quality sector. 

Ultimately, success should be measured not simply by the number of family offices, but by the substance, expertise and long-term value they bring to Malta.