On the 5 August 2022, the Malta Financial Services Authority (MFSA) published the Corporate Governance Code which is applicable to all persons authorised by the authority.\u00a0 The newly published Corporate Governance Code applies to\u00a0all persons authorised by the MFSA to provide financial services\u00a0in or from within Malta such as credit institutions, financial institutions, payment institutions, insurance companies, and investment firms.\u00a0 On the other hand, the Corporate Governance Code is not applicable to:<\/p>\n
In its commitment towards establishing corporate governance as one of its key principles, the MFSA has made it clear that the Code is intended to complement existing governance frameworks and thus, it will not be used to overthrow existing laws and regulations, which specifically targeted entities within the governance ambit.<\/p>\n
The Corporate Governance Code will be applied on a \u201cbest-effort\u201d basis \u2013 meaning that the Code\u2019s application will be based on the principle of proportionality, in a way, which matches the profile of the respective entity.\u00a0 Furthermore, the Corporate Governance Code outlines core principles, grouped into four key sections, namely: the effective Board; internal controls; stakeholder engagement; and corporate culture, corporate social responsibility (CSR), and environmental, social and governance (ESG).<\/p>\n