The MFSA has published a corporate governance code for authorized entities following a consultation process which started in 2020. The code sets out a list of guiding principles applicable to all unlisted entities authorized by the MFSA, thus excluding natural persons.
The Code aims to strengthen the legal, institutional and regulatory framework for good governance within the Maltese financial services sector. It has been organized into four main sections in accordance with the corporate governance policies advocated by international bodies such as the European Commission and the 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 “to the extent possible”, in a manner commensurate with the nature, size and complexity of the entity concerned. The MFSA also said the Code will serve as a benchmark for future policy alignment to assess whether changes may be needed in existing MFSA rules, codes and guidelines.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.