The importance of good corporate governance extends beyond regulatory requirements and may help to protect depositors, policyholders and investors, according to the Chief Officer for Supervision at the Malta Financial Services Authority, Christopher P. Buttigieg.
He believes that well-managed and well-run financial institutions are less likely to fail and are less likely to treat their customers and counterparties unfairly, which also instils confidence in supervisors.
Corporate governance – which covers a firm’s adherence to legislation, regulations, and codes – also allows directors and executives to focus on growth, value creation and long-term sustainability. This is particularly important in the context of the financial crisis, which showed how poor corporate governance could have a domino effect, posing a systemic risk to the financial stability of the entire global economy, one of the overriding reasons that it has received increased attention from various international bodies over the past few years.
Over the past years, developments such as the added emphasis on sustainability, the ever-increasing integration of capital markets, the increase in cross-border trade, as well as corporate failures, have strengthened the demand for higher standards of corporate governance.
The MFSA made the promotion of corporate governance one of its key strategic objectives for the 2019-2021 period, and plans to launch a Corporate Governance Code for MFSA-authorised entities.
The topic is to be tackled during a morning webinar being organised by the MFSA in collaboration with the Institute of Directors on 25 November 2021. This webinar is one of a series organised as the result of a Memorandum of Understanding signed with the IoD in the UK and their local Chapter, the IoD Malta Branch, which also covers the drafting of the Code.
Hundreds of participants have already signed up for the webinar, indicating the awareness of the topic’s importance.
Dr Buttigieg will be making the keynote speech at the webinar, which will also be addressed by the former global chair of the IoD, Charlotte Valeur. There will be two panel discussions – on the Mediterranean dimension, and on how governance can be enhanced through sustainability. The event will be closed by the MFSA’s Chief Officer for Strategy, Policy and Innovation Michael Xuereb.
For further information about the event and to register, please visit the MFSA website.
Read more about the February 2020 Consultation Process here.
Read the May 2021 Feedback Statement here.
