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 Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
