The Malta Financial Services Authority (MFSA) has signed a Memorandum of Understanding (MoU) with the Institute of Directors UK and their local Chapter, the Institute of Directors Malta Branch, setting up a joint initiative to improve Director education and standards, Director Certification and Corporate Governance across Malta-registered companies, NGO's and the public sector.
The MoU was signed by the IoD global Chair Charlotte Valeur on behalf of IoD UK, by Professor John Mamo Chairman of the MFSA and by IoD Malta Branch Chairman Edwin Ward.
The world of Corporate Governance has changed enormously in the last decade and now is a hugely important opportunity for Malta to take a lead on issues such as board diversity, remuneration, directors duties, technology and the responsibility of companies to their broader stakeholder base and not just their shareholders.
The changes underway impact not just listed entities but all companies no matter how small or whether for profit or not for profit. Each has a real part to play. As a result of the pressure to change the IoD has embarked on this MoU with the MFSA to align with other key stakeholders to review and develop a new governance platform for Malta.
While the MFSA already publishes the Corporate Governance Guidelines and expectations for Directors of Investment Companies and Collective Investment Schemes, Public Interest Companies and a Code of Principles of Good Corporate Governance for Listed Entities, the MFSA recognises that there are a range of stakeholders who are not covered by these guidelines and is working closely with IoD Malta Branch around identifying the need to draft a new Malta Corporate Governance Code to have a set of Corporate Governance principles that are “fit for purpose” for all entities, rather than just for listed entities as currently.
Charlotte Valeur said: “The MoU between the MFSA and us will drive greater understanding for the need to educate Directors and create a more embracing Corporate Governance culture in the Maltese jurisdiction and across the Maltese Islands. We are delighted to bring our educators to Malta for flagship programmes such as the Chartered Director course launched here this week, as well as to support through our experts a range of activities that Directors working in Malta can benefit from, such as Workshops and Seminars, as well as practical tools around Board Evaluation and closing skills gaps on Boards.”
Professor Mamo said: “We confirm our commitment to upholding the highest Corporate Governance standards and this agreement with the IoD is clearly a step in underlining our serious intent to work together to create greater competence amongst Directors at all levels in Malta. The new MoU signed with the IoD will help supplement the regulatory framework which is necessary to facilitate business growth and access to finance while educating our business community on probity issues such as conflict of interest.”
The MoU also provides for a wide range of coordination and cooperation in relation to Director Certification. The IoD's Chartered Director programme launched in Malta has a number of MFSA personnel on the course, which is the first time that a local Chartered Director pathway has been made available to Malta-based Directors.
Edwin Ward said, "This is an important platform for cooperation, and we would like to thank MFSA CEO Joseph Cuschieri and General Counsel Dr. Edwina Licari for championing this MoU. The IoD is a global standard bearer for Director education and raising standards. We can effect considerable positive change through what we can implement together based on the MoU, reflecting both entities commitment to cooperation and international standards."