Although I pen this appreciation under my name, I know that I echo the sentiments of my fellow colleagues and leaders (past and present) who have worked for (and with), Mr Joseph N Tabone, the founder of Joseph Tabone & Co, later to become the firm it is today, KPMG in Malta.

Much has been said about Mr Tabone’s significant achievements in business. To me (and many others who have been employed by the firm he established in the late 60s), he will be remembered as a central figure during the earlier years of my career. Interviewed directly by him in 1985 and employed by his firm in early 1986, I look back today at my early days working under his leadership as the building blocks of what followed, through to my appointment as a partner with KPMG in 1998 and, currently, its Head of Audit. Coincidently, his celebration of life coincides with my retirement as a partner with KPMG in Malta later this year.

From my very first day, Mr Tabone left an impression on me on what being a true ambassador of the firm was all about and how to protect its image. He truly personified every aspect of a client-focused strategy, yet remained true to our firm and professional obligations when serving the stakeholders to whom we report.

Many, including colleagues from years back, gathered on the 19 August at St Gregory’s Parish Church, not only to mourn his loss but also to celebrate a life well-lived – one with purpose, dedication, and an unwavering commitment to excellence. The gathering was a beautiful testament to the impact Mr Tabone had on the business community and the lives of those who, in one way or another, connected with him. It was evident from the memories some of us shared after Holy Mass, and the diverse group of those who gathered in prayer during the service, that Mr Tabone was much respected and admired and had touched the lives of many people in more ways than one.

Mr Tabone was not merely a visionary entrepreneur or a successful executive. He was a beacon of inspiration and made significant contributions to our profession (he twice served as President of the Malta Institute of Accountants). He possessed that unique ability which sees beyond the horizon, to envision possibilities where others saw obstacles, and to turn dreams into reality. What made him stand apart was not just his business acumen, but also his commitment to integrity and ethics. Mr Tabone did not measure success solely in terms of financial results, but also by the impact he had on others. He truly believed in creating a positive change, not only within his firm but also in the wider business community in which he served. He recognised that the key to building a successful business also required fostering a culture of collaboration, innovation, and respect, nurturing talent, inspiring creativity, and empowering those around him to reach their full potential.

My thoughts and sympathies go out to Mr Tabone's family during this difficult time. May his soul find eternal peace and may the legacy he left behind bring us all who have been fortunate enough to have known him, comfort, inspiration, and guidance towards a future filled with purpose.

Author: 

Hilary Galea-Lauri
Partner | Country Head of Audit | KPMG in Malta

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Rethinking and reforming the financial services industry was the underlying theme of the MIA Biennial Conference 2023, addressing the key areas that underpin the required reforms towards upgrading the competitiveness and reputation of the Maltese jurisdiction.

Stakeholders from regulators and authorities, and industry professionals looked at how the Financial Services Strategy seeks to address existing bottlenecks and identify where the economic opportunities of the near future lie.

Opening the Institute’s largest Conference on the calendar of events, with almost 400 people present, Ms Maria Cauchi Delia, MIA CEO, highlighted that the recently-launched financial services Strategy focuses on essential reforms and specific proposals to leverage Malta's unique advantages and enhance its position as a global financial hub with a distinct European perspective. “The key lies in strengthening and updating existing resources while exploring new opportunities for specialised financial products. Achieving this requires a robust legislative framework and clear regulatory guidelines to establish a solid foundation for the future”, she explained.

MIA President Mr David Delicata called on stakeholders to strive hard towards improving Malta’s reputation. “If we really want to promote Malta as a jurisdiction of quality, our country must continue implementing reforms related to the rule of law, governance, media freedom and others, and more importantly, make sure that such reforms are not solely seen as boxes to be ticked. The attractiveness of our nation starts first and foremost from here”, he said. He also dwelled on MIA's role in developing and implementing this Strategy, describing this as a clear demonstration of the Institute’s added value.

The Chairperson of MFSAC, Mr Joseph Zammit Tabona, emphasised that it is now time to commence the actual implementation of the Strategy. He explained how the Malta Financial Services Advisory Council (MFSAC) has presented a clear plan outlining the prioritisation of a set of reforms that can be completed within a span of 18 months. To ensure successful execution, some 20 working groups will be formed to closely monitor the Strategy's objectives. Additionally, a project management office will oversee the entire implementation process. These dedicated working groups will each focus on a specific subject-area in order to facilitate and expedite the process. Mr Zammit Tabona also insisted that the success of the Strategy relies on the input of practitioners and service providers.

Finance Minister Hon. Mr Clyde Caruana insisted that a new economic model for Malta will need to focus on technology and capital intensive industries, otherwise it will be very hard to sustain the current level of growth, citing the Financial Services Strategy as the right example of what we have to look at and work on - solutions which provide higher value-added. The Finance Minister continued that we need structural changes, not mere reforms. He also noted that there will be other challenges in the months ahead, particularly in terms of tax. Hon. Mr Caruana also explained that Europe is moving ahead at a very fast pace and will consolidate further economic and financial policies. He added that this will have a big impact on Malta and thus we need to make sure that the required changes are implemented.

Hon. Mr Jerome Caruana Cilia, Shadow Finance Minister, described this decade as crucial, requiring important decisions to be made regarding the country’s path forward. This applies to various sectors such as climate change, environment, foreign policy, and specifically, financial services. Hon. Mr Caruana Cilia argued that reform should be guided by the main pillars, these being the operating environment, technology and innovation, talent, and communication and promotion.

During the event, high-profile stakeholders from the public and private sector addressed various elements of the Strategy including taxation, sustainability, national payments infrastructure, asset management, capital markets, insurance and pensions as well as Fintech. Representatives from different regulators whose activity impacts the future of the industry, including the Financial Intelligence Analysis Unit, the Malta Business Registry, the Malta Financial Service Authority as well as the Commissioner for Revenue also addressed the Conference. The Conference also featured a number of international speakers, including the President of Accountancy Europe, Mr Mark Vaessen.

Mr Mark Bugeja, Vice-President of the Malta Institute of Accountants, while noting the flavourful agenda that ensued throughout the day, closed off the conference by saying that the industry and the profession will continue to grow and flourish but all stakeholders need to play a role in making it happen,.

The Biennial Conference 2023 was kindly supported by Epic, BNF Bank, the Malta Stock Exchange, Shireburn Software Limited and Finance Incorporated Limited.

The metaverse, as well as technological developments in the field of blockchain and AI, create a vast array of opportunities, according to Malta’s budding accountants, but establish new risk of abuse associated with money-laundering, tax evasion and financing of terrorism.

A Forum hosted by the Malta Institute of Accountants’ (MIA) Young Members Focus Group highlighted how metaverse, blockchain and NFTs are opening up new realities in the space of digital ownership, supply chain transparency, and investment opportunities while creating new revenue streams in diverse sectors of the economy.

Opening the event, MIA President David Delicata highlighted the economic opportunities that such technology presents. Comparing the impact of this technological revolution to the rise of the Internet, Mr Delicata recalled that just a few decades ago, the widespread availability of the Internet was met with concern, but through time, not only were these concerns addressed accordingly but the internet has transformed the way we do things, including business. Similarly, society has to learn how to regulate the developments associated with the subject matter to ensure that while the opportunities are fully utilised, abuse is identified and addressed.

MIA CEO Maria Cauchi Delia observed how, while technology is acting as a major disruptor within the financial industry, it has also enabled the creation of new opportunities for accountancy professionals and will continue to do so. Despite the challenges that such developments bring about, at the same time this reality is another living proof of how dynamic the profession is.

Three panels of knowledgeable speakers shared their views on the impact of recent advancements in these fields on matters relating to investment, the regulatory, legal and fiscal sphere and accounting and taxation, also with an eye on developments initiated at European level. Across the panels, a recurrent consideration focused on the fact that digital elements such as NFTs will require a rethinking of fundamentals related to their nature, given that their role could range from that of tradeable securities to possessions equivalent to intellectual property.

Touching base on the main challenges when it comes to these aspects, including AML, the speakers highlighted the need for technology, law and finance professionals to consult and come together when dealing with these areas, and the importance of communicating with the relevant authorities.

Besides regulation, accountancy professionals highlighted the need for education across the board, from the general public, to the authorities and regulators, with the latter facing a continuous race for time against money-launderers, fraudsters and tax evaders who keep seeking to maximise the opportunities given to them by evolving technology.

Mr Dean Micallef, Chairperson of the MIA Young Members Focus Group, brought the event to a close by underlining the fact that these new technological developments required a change in mindset and highlighting that the responsibility of industry professionals to take it on. "Remain interested because it is going to keep moving”, were Mr Micallef’s final words of advice to all those present for the event.

The well-attended event, held at Villa Arrigo, also featured the traditional networking element at the end of the sessions, helping to bring together the vibrant community of young professionals within the Institute as well as strengthen connections across different professions.

Over the past couple of decades, the financial services industry in Malta has undergone remarkable expansion, emerging as an appealing destination for global players and creating thousands of high-quality and well-paying employment opportunities. This sector remains a crucial catalyst for economic growth and plays a significant role in the country’s overall development.

While this growth is testament to the resilience of the industry, it does not guarantee future success on its own. The recent grey-listing was a major wake-up call which prompted all stakeholders to take determined and decisive action. Authorities, regulators, and professional organisations, including the Malta Institute of Accountants, collaborated to address existing weaknesses and enhance the system’s ability to combat financial crime.

Concurrently, it is also acknowledged that it is time to look forward. Other countries have quietly leveraged smart technologies to gain a competitive edge, highlighting the importance of adaptability and flexibility in today’s global economy. As a jurisdiction which has always been forward-looking in its approach, there is a clear opportunity to embrace a new era of digitally empowered financial services and reaffirm Malta’s position in a highly competitive global market.

With this background, a unique joint effort of public and private forces, led by the Malta Financial Services Advisory Council (MFSAC), mapped the way forward and came up with a new Strategy for the financial services sector. This Strategy aims to strengthen Malta’s position as a professional jurisdiction supported by a digitally enabled and user-friendly financial system. A total of 175 tangible initiatives have been proposed, which will truly take the industry to the next level. Even better, the Strategy goes beyond the identification of solutions, but it assigns responsibilities and timeframes, ensuring their feasible implementation.

It covers a number of industry verticals namely Banking and Payments, Capital Markets, Insurance and Pensions, Wealth & Asset Management and Fintech, while also tackling requirements related with Taxation, Human Resources and Education, and Sustainability and Sustainable Finance.

The Malta Institute of Accountants played a central role in formulating the Strategy and will continue to actively participate by representing the concerns of its members and addressing them at the relevant levels, including regulatory bodies. Additionally, the Malta Institute of Accountants has been entrusted with the responsibility of planning and overseeing the implementation of recommendations related to human resources and education, with human resources and skills gaps being major limiting factors for the financial services sector.

Furthermore, the Malta Institute of Accountants is extensively involved, occasionally even taking a leading role, in fulfilling other supporting requirements such as taxation and sustainable finance.

Understanding the profound impact of these reforms, the Malta Institute of Accountants will be dedicating its traditional Biennial Conference to a comprehensive examination of these proposals. The objective is to delve beyond a mere overview but rather to provide participants with in-depth insights into the anticipated changes in the coming months.

This year’s event, being held on the May 31, 2023 in collaboration with the MFSAC, will offer a unique opportunity to receive first-hand insight on the Strategy and gain visibility of the new growth avenues being identified for the months and years ahead.

The MIA Biennial Conference 2023 Rethink and Reform, A Blueprint for Malta’s Competitiveness in Financial Services will be held on May 31, 2023 at the Hilton Hotel. Book your place at www.miamalta.org/Biennial23

Are you struggling to build strong relationships with your clients? Do you find it challenging to give and receive feedback effectively? Do you wonder what really matters to your clients when it comes to features versus benefits? Do you want to learn how to increase your connection with your clients using mirroring techniques? If so, then join me for an upcoming training session where we will cover all of these essential topics and more.

During this training session, you will gain a deeper understanding of the essentials of relationship management for different clients. You will learn how to tailor your approach to different types of clients in order to build stronger, more meaningful relationships with them. We will explore different communication styles and how to adapt your communication to match your clients' needs and preferences. Because communications is a two-way stream, due focus will be placed on how to give and receive feedback based on active listening.

Additionally, we will cover the topic of features versus benefits to help you understand the difference between these two concepts and why it is important to focus on benefits when communicating with your clients. We will explore different ways to identify your clients' needs and how to communicate the benefits of your products or services in a way that resonates with them.

Finally, we will explore the concept of mirroring and how it can increase your connection with your clients. You will learn how to use body language, eye contact and mannerisms to mirror your clients and build rapport with them.

By the end of this training session, you will have a solid understanding of the essentials of relationship management, effective feedback, features versus benefits, and mirroring techniques. You will be able to apply these skills and techniques to build stronger, more meaningful relationships with your clients, communicate more effectively with them, and ultimately, drive better business outcomes.

Don't miss out on this valuable opportunity to improve your relationship management skills. Sign up for the training session today and take the first step towards building stronger, more meaningful relationships with your clients.

Register here.

The Institute had the pleasure of presenting a cheque of €7300 to Dr Klown, a non-governmental organisation that has been providing clown doctor services to children at Mater Dei Hospital in Malta since 2010. This generous donation was made possible thanks to the funds raised through various events, including the Football Tournament, World Cup Predictor, and Quiz Night, as well as the generous donations from supporters and talented artists who contributed through their artworks.

Dr Klown was founded by a group of people who shared the goal of providing entertainment and humour to children in the hospital. What started as a pilot project has now evolved into a professional NGO that prides itself on delivering joy and laughter to young patients. The clown doctors of Dr Klown are volunteers who are artistically and psychologically trained to entertain children in hospital. To clown doctors, the person matters more than the illness, and even when kids are very sick, they are still kids who can benefit from some levity.

The healing power of humour has been recognised since ancient times, and international research has found real physiological and psychological benefits to patients. To provide this cheer, clown doctors might visit and stay with the children during treatment, improvising around each child's situation and interests.

The Institute's donation will allow Dr Klown to continue to bring smiles to the faces of young patients and make a positive impact on the lives of their families. These funds will go towards ensuring that the organisation can provide its services to as many children as possible, spreading joy and laughter throughout the hospital.

As we celebrate this milestone, Dr Klown is currently on the lookout for new volunteers to join their family as clown doctors. Those interested are encouraged to fill in the application form on their website and attend the Dr Klown Recruitment Day on April 29th. Volunteers must be over 18 years old and will receive training and support to ensure that they are prepared to provide the best possible experience to young patients.

In conclusion, the work of Dr Klown is an important reminder that even in the most difficult times, a smile and a bit of laughter can make all the difference. We urge everyone to consider volunteering their time and support this wonderful organisation that spreads joy and laughter to children in hospital and their loved ones!

Those interested in donating can do so on Dr Klown’s website.

This three-hour webinar is beneficial for real estate professionals (such as estate agents, valuers and advisors) and professionals who review valuations and property investors as it will advance their skills in the core methods used for the market valuation and investment appraisal of investment and commercial real estate. This is useful as commercial real estate valuation is a crucial element of the local real estate market but can be opaque and difficult to decipher.

Traditionally, commercial properties have been valued using the traditional capitalisation method. This is an inflation implicit valuation method where the rental value is divided by an all-risks yield (or cap rate) in order to obtain the Market Value.

However, the world is experiencing a shift towards the discounted cash flow method as it is an inflation explicit method which is more versatile which makes it able to cater for changing complexities in lease structures.

This shift has been slow in Malta as there remains a reluctance within the real estate sector to adopting valuation approaches in which these factors are made more explicit for a variety of reasons.

The webinar will discuss the key concepts and principles of the plethora of yields out there and of these two valuation methods, being the two main methods in the income approach. It will comment upon the on-going debate about the preferred use of the traditional method of valuation as opposed to their explicit (DCF) counterparts by giving an overview of the processes and pros and cons of both methods, and will give guidance about when to use both methods.