MFSA launched Corporate Governance Code

On 5th August 2022, the MFSA launched its Corporate Governance Code for MFSA authorised entities.

 

The Code provides a list of guiding principles to enhance the legal, institutional, and regulatory framework for good governance in the Maltese financial services sector. The application of the Code is based on the principle of proportionality. The principles are designed to complement the current provisions in force in the legal and regulatory framework.

 

The 'best-effort basis' upon which the Code is applied was adopted to ensure a proportionate approach, given that a wide range of entities fall within its scope. Entities are expected to make every effort to adhere to the Code in a manner that is commensurate with the nature, size and complexity of the entity concerned. The provisions of the Code do not replace or supersede any requirements set out in the applicable regulatory frameworks.

 

The Authority believes that the increased supervisory focus and the policy initiatives that the MFSA is implementing in this area, such as this Code, will help board members and practitioners make good decisions and guide entities to achieve a strong corporate governance ethic. The code will act as a measuring stick for future policy realignment when examining any potential changes that may be needed for the MFSA rules, existing codes, and guidelines.The goal is to maintain a balance between descriptive regulation and "soft law", which is applicable to the various entities.

 

How can BDO help?

BDO can assist organizations by providing a range of services designed to provide greater clarity on Governance, Risk and Control Frameworks, as well as to support best practice in this area.

BDO’s Risk Advisory Services include:

 

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