On the 16^th May 2019, the Malta Financial Services Authority (MFSA) reported that it had signed a Memorandum of Understanding (MoU) with the Institute of Directors UK and the Institute of Directors Malta Branch, setting up a joint initiative geared towards strengthening Director education and standards, Director Certification and Corporate Governance across Malta-registered companies.

the MFSA is working closely with IoD with a view towards drafting a new, all-encompassing Malta Corporate Governance Code that will apply for all corporate entities indiscriminately

In highlighting the 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, the MFSA confirmed that the changes which will be brought about as a result of the MoU will impact all Malta companies irrespective as to their size and scale, whether they are listed entities and/or non-profit.

The MFSA has, of course, already implemented Corporate Governance Guidelines as well as a Code of Principles of Good Corporate Governance however, to date, the scope of application of these instruments has been limited to Directors of Investment Companies and Collective Investment Schemes, Public Interest Companies and Listed Entities. As such, the MFSA indicated that it is working closely with IoD with a view towards drafting a new, all-encompassing Malta Corporate Governance Code that will apply for all corporate entities indiscriminately.

The MoU also facilitates broad cooperation in relation to Director Certification, including the recent launch in Malta of the IoD’s Chartered Director programme

The MoU also facilitates broad cooperation and coordination in relation to Director Certification, including the recent launch in Malta of the IoD’s Chartered Director programme, marking the first time a local Chartered Director pathway has been made available to Malta-based Directors.