MFSA: New Corporate Governance Code for authorised entities
The framework conditions for foreign investment in Malta have been strengthened further by a recent initiative of Malta’s financial watchdog.
MFSA, the Malta Financial Services Authority, launched a new Corporate Governance Code for authorised entities on Friday, 5th August 2022.
The Code provides a list of guiding principles, designed to enhance the legal, institutional, and regulatory framework for good governance in the Maltese financial services sector. Dr Hermann Kresse, head of Kresse International Law Firm underlines: 'The Code thus forms part of Malta’s ongoing initiatives to constantly strengthen the jurisdiction and make the island even more attractive for foreign investment. We welcome this step since it enhances and facilitates our work with foreign clients'.
MFSA 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.'
Farrugia pointed out that the 'increased supervisory focus and the policy initiatives that the MFSA is implementing in this area, 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.
This Corporate Governance Code does apply to all MFSA listed entities with the exception of those falling within the scope of the Capital Market Rules, and authorised persons who are no legal entities, but natural persons.