MFSA Statement on Consultation on Corporate Governance Framework
MFSA published a feedback statement following the consultation on a comprehensive and enforceable cross-sectoral corporate governance framework for the MFSA-authorized entities and the listed companies. MFSA received several responses on the consultation from a wide range of industry participants and interested parties and carefully considered the feedback received. The majority of stakeholders appreciated that good corporate governance is crucial and that the review will benefit the financial services industry and the jurisdiction in general. However, respondents raised a number of concerns and put forward several views and recommendations in relation to the proposed framework.
With the consultation document on corporate governance framework, MFSA had set out several proposals to promulgate a comprehensive principles-based, cross-sectoral Corporate Governance Code, supplemented by sector-specific MFSA rules and complementing guidelines or sectoral codes. In determining its positions, as set out in the feedback statement, MFSA has focused on raising corporate governance standards for authorized persons, ensuring that governance is considered a top priority and embedded in firms’ culture by the governing body and senior management. Furthermore, MFSA is mindful of the potential impact of the proposed Code on various types of entities falling within the scope of the framework and ensured that a “one-size-fits-all” approach is avoided, while ensuring that the overall governance standards increase.
In this respect, MFSA will be issuing a list of principles of good corporate governance applicable to all authorized persons on a “best effort basis.” The main principles will be supplemented by supporting provisions, which will act as guidance for achieving the main principles. The principles will also be supported by sector-specific complementing guidance notes and/or updates to the governance section of the MFSA Rulebooks (as applicable) and/or sectoral codes. In determining whether any of the requirements are to be included in the relevant Rulebooks or else by guidance notes or Codes, MFSA will take note of various criteria, including the existing provisions in various frameworks and the risk classification of entities, as determined by MFSA. In line with the commitment of MFSA to enhance engagement with its stakeholders, the Code of Principles may, in due course, be the subject of another industry consultation exercise. This would allow stakeholders to comment, make suggestions, and submit contributions to the draft Code.
Related Links
Keywords: Europe, Malta, Banking, Insurance, Corporate Governance, Governance, ESG, Governance Framework, Rulebook, MFSA
Previous Article
EBA to Launch EU-Wide Transparency Exercise in September 2021Related Articles
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
