The Malta Financial Services Authority (MFSA) has announced the appointment of Kenneth Farrugia as the new regulatory Chief Executive Officer, effective from 12 April. He will replace Dr Michelle Buontempo, who is holding the position in an acting capacity.

Leadership Crisis in MFSA

The official announcement detailed that the latest CEO appointment was an urgent measure to bring in the ‘right person’. Additionally, the authority highlighted that the leadership changes over the past few years have not been ‘beneficial.’

“The Board acknowledged… that the previous open and international call for applications for the position of Chief Executive Officer had not benefited the Authority to the desired extent, and agreed that a public call for applications for the post of Chief Executive Officer would not be in the best interests of the Authority at this point in time,” the MFSA stated.

Previously, the MFSA onboarded Joseph Gavin as the CEO in September 202. However, he became ‘indisposed’ within months, putting Dr Buontempo temporarily in charge in mid-June 2022. Though Gavin returned at the end of July 2022, he stepped down in September, as Dr Buontempo temporarily took over the apex position again.

Gavin’s short tenure with the MFSA came after the resignation of Joe Cuschieri, who was caught traveling to Las Vegas with a murder suspect.

Farrugia to Fix the Reputation

The MFSA board now believes Farrugia to be a perfect fit for the CEO role, as he brings years of extensive leadership experience. Earlier, he was the Director General of the Internal Audit and Investigations Department (IAID) and the Director of the Financial Intelligence Analysis Unit (FIAU).

“Mr Farrugia is technically very well prepared and has exceptional organizational development skills,” the MFSA added.

“He is also personally very well regarded at an international level by a number of supranational authorities, including the European Commission, European Banking Authority, Egmont Group of Financial Intelligence Units, and MONEYVAL, and has been acclaimed by the US government for his achievements and integrity. He is also highly regarded by the wider community of industry stakeholders in Malta, which is considered essential for the MFSA.”