Malta: Prime Minister Inaugurates Premises Of Bank Of Valletta's Stockbroking Company

Lisa Ugur, Tax-news.com, London

26 March 2001

We reported at the end of last year that Malta's Bank Of Valleta Group (BOV) was to be one of the first banks to take advantage of amendments in the island's banking laws which allow financial institutions to offer stockbroking services. Earlier this month Maltese Prime Minister, Edward Fenech Adami, officially inaugurated the new premises of Bank of Valletta Stockbrokers Ltd (BOVSL), saying that the company would turn BOV into a full financial services provider, and would increase local investors' accessibility to financial markets, as well as extending shares in local companies to international investors.

BOVSL was set up in September last year as a new company to provide stockbroking services to the bank's customers predominantly through its branch network and to other companies within the BOV Group. At its inauguration, the Prime Minister said: 'It is satisfying to see Bank of Valletta taking up the opportunity and challenge presented by the legislation that my government has enacted to keep the country abreast of major economic and political changes, both domestic and international.'

Addressing the inauguration ceremony, Bank of Valletta Group Chairman, Mr Joseph F.X. Zahra, stated: 'Activity on the Malta Stock Exchange has increased steadily over the past few years and in view of the forthcoming privatisation programme this should continue to grow healthily, over the coming years. Furthermore, consumer awareness levels have climbed to new heights as a wide cross section of the Maltese population now invest on the Stock Exchange. We are pleased that a favourable environment has recently been created by the legislative changes to allow banks enter the stockbroking arena and in the year 2000, BOV was the first bank to enter the brokerage business. For the Maltese financial sector, this was another first.'

BOVSL only obtained its licence from the Malta Stock Exchange in December and started operating in mid-January, but already it is planning to enhance its offerings, and is due to apply for an investment services license from the Malta Financial Services Centre to allow it to arrange deals on foreign exchanges. So far, its additional services include the provision of financial news and stock quotes to subscribers of "go mobile" and it plans to launch Internet broking services later in the year.

Mr Zahra concluded: 'BOVSL is committed to make the most of technology and develop innovative distribution channels in anticipation of investors’ needs. Technology and physical access are not enough. Without personal interaction, the service can never have the customisation that is required. We have ensured that the employees of this subsidiary are young, dynamic and in themselves a reflection of initiative, flexibility and enthusiasm. Given the continued investment in development of our human resources, we are sure that this young team, with the support of all BOV branches, will succeed in satisfying our customers’ investor needs and maintain the seamless service which the BOV Group aims to achieve in all its fields of operation.'

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