2nd November
Revamped MFSA Corporate Governance Manual for Directors of Collective Investment Schemes
The Malta Financial Services Authority (“MFSA”) has, on the 30th of October 2023, published a revamped Corporate Governance Manual for Directors of Collective Investment Schemes (the “Manual”).
The updated Manual seeks to align the Corporate Governance Manual for Directors of Investment Companies and Collective Investment Schemes with the general Corporate Governance Code, as well as to align it with the MFSA’s supervisory expectations, regulatory developments and trends, and the MFSA’s renewed strategic orientation.
The Manual introduces additional principles and best practices which are specific to the funds sector, promoting strong and effective governance, seeking to enhance compliance culture and ensure the continued stability, growth and soundness of the sector.
The revamped Manual covers a vast array of topics, such as those revolving around Directors, including the principles by which they are expected to act, their appointment, succession and resignation, and the structure and composition of the Board of Directors; board packs and board meetings; external advisors and service providers; insurance; conflicts of interests; AML and CFT, and ESG related obligations, amongst others.
The publication of the revised Manual forms part of the long-term project which the MFSA has embarked on, aimed at strengthening the overall corporate governance framework of the MFSA’s entities, in line with its strategic priority of strengthening the overall governance, conduct and culture within the financial services sector.