Malta: MFSA feedback statement - the corporate governance framework for authorised firms and listed companies

In February 2020 the Malta Financial Services Authority published proposals for a new corporate governance framework for MFSA authorised firms and listed companies: see here (pdf). The proposed framework, on which views were sought, contained principles operating on the basis of 'apply and explain', to be supported by sector specific guidance and rules. A consolidated corporate governance code for authorised firms and listed companies was also proposed.

An update on these proposals, in the form of a feedback statement, was published today: see here (pdf). A short press release was also published: see here (pdf).  The statement explains that the proposed principles within the corporate governance framework for authorised firms will no longer be mandatory - as suggested by "apply and explain" - but will operate on what is described as a "best effort basis". The principles will be supported by binding rules and guidance notes. The feedback statement also sets out the structure of the proposed new MFSA corporate governance code. A consolidated code is no longer proposed.