The Malta Financial Services Authority launched its Corporate Governance Code for MFSA authorised entities on Friday.
The regulatory authority for financial services in Malta said that the Code provides a list of guiding principles, complemented with supporting provisions, and the application is based on the principle of proportionality.
“These principles are designed to enhance the legal, institutional, and regulatory framework for good governance in the Maltese financial services sector. They thus complement the current provisions already in force in the legal and regulatory framework,” it said.
The Code was adopted to ensure a proportionate approach, given that a wide range of entities fall within its scope. Entities are expected to adhere to the code’s requirements in a way that is appropriate to the entity concerned.
Head of Strategy, Policy and Innovation Clare Farrugia said that the authority considers good corporate governance as “being fundamental for investor protection, market integrity and financial soundness.”
She said that the authority believes that the “increased supervisory focus and the policy initiatives that the MFSA is implementing in this area, such as this Code, are conducive to steering board members and practitioners alike to adopt good judgement and in guiding entities in the right direction to achieve a strong corporate governance ethic.”
The Code will serve as a benchmark for future policy alignment in evaluating any changes that may be required in the MFSA rules, guidelines, and existing codes.
The process for the Corporate Governance Code started with a consultation document, which was then issued for public consultation to allow stakeholders an opportunity to express views, comments, and suggestions before it comes into force.