Enhancing the governance, culture and conduct of MFSA authorised entities

The Malta Financial Services Authority (MFSA) today launched a month-long consultation on its proposed Corporate Governance Code, an important factor when it comes to fostering and enhancing governance, culture and conduct.

Good governance is fundamental for investor protection, market integrity and financial soundness as it ensures that institutions operate transparently. It also minimises the risk of failure, safeguards stakeholders’ rights and avoids excessive risk taking in corporate decision making.

Once in force, the Code will be applicable to all persons authorised by the MFSA but would not apply to listed entities falling within the scope of the MFSA Capital Market Rules, given that these already include specific governance provisions applicable to such entities.

The Authority identified Corporate Governance as one of its main strategic priority objectives, as outlined in the MFSA Strategic Plan 2019-2021 and subsequently in its Strategic Update published in 2021 and the Supervisory Priorities for 2022. The supervisory focus on the internal governance of financial services firms is therefore intended to be maintained.

The Consultation Document can be accessed from the Authority’s website. Any comments or feedback are to be addressed to the Strategy, Policy and Innovation function by sending an email on [email protected], by no later than 22 March 2022.