The MFSA has issued a Corporate Governance Code for authorised entities following a consultation process which commenced in 2020. The Code brings forth a list of guiding principles applicable to all unlisted entities authorised by the MFSA, thus excluding natural persons.
The Code aims to enhance the legal, institutional and regulatory framework for good governance within the Maltese financial services sector. It has been organised in four main sections in line with corporate governance policies advocated by international bodies such as the European Commission and OECD, namely: (i) the Effective Board; (ii) Internal Controls; (iii) Stakeholder Engagement; and (iv)Corporate Culture, CSR and ESG.
Entities are expected to adhere to the Code on a ‘best effort basis' in a manner that is proportionate to the nature, size and complexity of the entity concerned. The MFSA has also stated that the Code will serve as a benchmark for future policy alignment to evaluate whether any changes may be required in the MFSA Rules, existing codes and guidelines.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.