ARTICLE
18 February 2016

Compliance With Corporate Governance Requirements – Trustees And Fiducaries

CG
CSB Group

Contributor

Established in 1987, CSB Group offers diverse yet specialised business solutions and commercial services to a vast portfolio of corporate and private clients seeking to setup a business or relocate to Malta. With an 100+ team of qualified professionals we strive to be a partner of choice to our clients, providing them with tailor-made solutions, uniquely aimed at helping them succeed.
The Conduct Supervisory Unit within the MFSA carried out a compliance review of Trusts and Fiducaries in 2015.
Malta Corporate/Commercial Law

The Conduct Supervisory Unit within the MFSA carried out a compliance review of Trusts and Fiducaries in 2015. The primary aim of this thematic review was to find out to which extent the participating companies have proper governance structures set in place. This was done by assessing three main areas of company structure through a questionnaire mainly related to corporate governance.

The first part of the questionnaire related to organisational structure, business plan, staff, record keeping as well as business development. The second part pertained mostly to the board of directors and the dynamics of this board, while the third and final part was mostly concerned with company operations. Here, information about client numbers, services and the company's operational risk assessment was requested from authorised individuals within the company.

After gathering the data, this was analysed from regulatory and best practice perspectives, with a risk analysis and categorisation conducted for each participant. A total of 60 trustees and fiduciaries, representing around half of all license holders beneath the Trust and Trustees Act participated in this study and the sample population varied in size, type and business model.

On the 30th December 2015, the MFSA published the main issues that resulted from the questionnaire in order to encourage corrective action with regards to its compliance standards.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More