The MFSA Publishes A Draft Corporate Governance Code For Authorised Entities

On the 22 February 2022, the MFSA published a draft Corporate Governance Code ("Code") which will be applicable to all (unlisted) persons authorised by the MFSA.¹ In the Circular accompanying the publication, the MFSA explains that the Code comprises various principles, to be applied on a 'best effort basis', complemented by supporting provisions to guide the entities towards achieving the objectives set out in the principles. Its main sections relate to the Board and its responsibilities, internal controls (Risk Management, Compliance, Internal Audit, ICT and Security Risk Management and Business Continuity), stakeholder engagement and corporate culture, Corporate Social Responsibility and ESG. The section relating to the Board touches upon a broad range of topics such as composition, succession, remuneration, board evaluation and conflicts of interest. Consultation is open until the 22 March 2022.