The MFSA publishes the Corporate Governance Code for Authorised Entities

On the 5 August 2022, the Malta Financial Services Authority (MFSA) published the Corporate Governance Code which is applicable to all persons authorised by the authority.  The newly published Corporate Governance Code applies to all persons authorised by the MFSA to provide financial services in or from within Malta such as credit institutions, financial institutions, payment institutions, insurance companies, and investment firms.  On the other hand, the Corporate Governance Code is not applicable to:

• authorised Listed Entities falling within the scope of the MFSA Capital Market Rules;
• authorised persons who are natural persons (individuals).

In its commitment towards establishing corporate governance as one of its key principles, the MFSA has made it clear that the Code is intended to complement existing governance frameworks and thus, it will not be used to overthrow existing laws and regulations, which specifically targeted entities within the governance ambit.

The Corporate Governance Code will be applied on a “best-effort” basis – meaning that the Code’s application will be based on the principle of proportionality, in a way, which matches the profile of the respective entity.  Furthermore, the Corporate Governance Code outlines core principles, grouped into four key sections, namely: the effective Board; internal controls; stakeholder engagement; and corporate culture, corporate social responsibility (CSR), and environmental, social and governance (ESG).

For further information about the provisions of the MFSA’s Corporate Governance Code and its potential effect on your business, please contact Ecovis GRC Limited by sending email to malta@ecovis.com