The MFSA Corporate Governance Code

The MFSA Corporate Governance Code

On Tuesday the 22nd of February 2022, the Malta Financial Services Authority (MFSA) officially launched a month-long consultation process on the heavily anticipated development of a holistic Corporate Governance Code applicable to all licensable entities.

The introduction of such a new and highly sought-after array of principles is set to instil, promote, and regularise the advocated practices of financial sustainability, optimal stakeholder relationships, board oversight and a culture of excellence from top to bottom.

The MFSA had officially set its sights on the overall enhancement of the Financial Sector’s corporate governance practices through its enacted ‘Strategic Plan 2019-2021’, whereby it identified the area as being one of critical importance which fosters transparent dealings, accountability, and institutional division of power within its portfolio of licensed entities. Thus, the creation of such a Code is to standardise industry-wise corporate governance principles and guide established best practices through to implementation.

The MFSA’s draft Corporate Governance Code can be accessed through the following link.

Even before the MFSA’s prioritisation of such an area and its identification as a key role within an entity’s overall structure, BDO has perennially advocated the benefits which may be reaped through the implementation of good corporate governance practices along with the cross-dimensional lingering effects which are enjoyed by all stakeholders.

BDO has a history of guiding firms within the Financial Sector towards enhanced models of effective corporate governance and prioritising advanced internal controls targeted at establishing investor protection and financial transparency principles within all of its clients.

The establishment of such a Code will further allow us to guide our clients in creating a clear, robust and efficient organisational structure focused on the principles set out within it, providing our expertise and personal guidance on crucial matters which ultimately elevate their business to the next level.

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