IFSP puts industry views on Corporate Governance forward
In parallel with the work being done by the IFSP and its sub-committees with the FIAU and the ongoing discussions with the Malta Business Registry on its services, and the MFSA on its newly minted framework for CSPs, the IFSP has also submitted its views on the MFSA’s proposals for an updated Corporate Governance framework.
The IFSP’s response to the MFSA’s discussion paper issued for consultation was drafted by a committee led by Juanita Bencini, along with Alexia Farrugia, Catherine Formosa and Silvan Mifsud, through a series of intensive discussions, informed both by their own experience and knowledge of the area and by comments put forward by the Institute’s members.
The IFSP strongly holds that a robust corporate governance framework in line with the changing realities of business today is an essential requirement. The discussion paper issued by the MFSA, titled “Stakeholder Consultation on Revisiting the Corporate Governance Framework for Entities authorised by the MFSA and Listed Companies”, is a welcome move towards reinforcing the standards that are already in place.
In its response, however, the IFSP expressed its view that the differences between listed companies and licensed or authorised entities calls for the creation of two codes, one governing listed companies, and the other regulated entities. Further, the IFSP noted that the provisions of any code of corporate governance would need to take the range of sizes of regulated entities to ensure any mandatory requirement can be put into practice in small as well as large firms.
This is the first stage in the development of a renewed corporate governance framework. The IFSP will continue to follow the discussion on Corporate Governance.