The Malta Financial Services Authority has today launched a stakeholder consultation setting out several proposals for the promulgation of a comprehensive principles-based Corporate Governance Code which is applicable to all entities authorised by the MFSA and Listed Companies, which would then be supplemented by sector-specific rules and complementing guidance notes.
The Authority is proposing that entities will be expected to ‘apply and explain’ the high-level principles-based code, and to ‘comply or explain’ how they are following the applicable rules and guidelines. The consultation also puts forward principles, for inclusion in the proposed Corporate Governance Code, on the Board of Directors, the responsibilities of functionaries and officials, engagement with stakeholders, committees, corporate culture, ethics framework, risk management, as well as other topics.
MFSA Chief Executive Officer, Joseph Cuschieri, commented that “We believe that the proposals set out in today’s publication will significantly raise the bar with respect to standards of Corporate Governance and set the tone in so far as the Authority’s expectations. We have put forward these proposals because we believe that the focus on Corporate Governance will have a positive effect on the financial services industry and will raise compliance standards across the board”.
The Consultation Document is publicly available on the MFSA website and will remain open until Wednesday 26 February 2020. Interested parties are invited to send their feedback on [email protected] by this date.