On the 30th October 2023, the Malta Financial Services Authority ('MFSA') issued an updated version of the 'Corporate Governance Manual for Directors of Collective Investment Schemes'. The Manual is complementary to the new 'Corporate Governance Code' published by the MFSA in August 2022, and focuses on the principles that should be followed by directors of local collective investment schemes.

The updated Manual introduces additional best practices and principles specific to the funds sector whilst seeking to bring the Manual in line with the Corporate Governance Code. In doing so, the MFSA aims to advance efficient and strong governance, strengthen the compliance culture and guarantee the sector's continuous stability, soundness and growth.

The non-exhaustive guidance set out in the updated Manual shall be utilised in the development of collective investment schemes' best corporate governance practices. The MFSA expects that directors of such schemes comply with the Manual's principles on a 'best-effort basis' and in proportion to the size, nature and complexity of business of the scheme.

Notably, the Manual is not intended to override the applicable rules, laws or regulations regulating collective investment schemes, and such regulations shall therefore prevail should a conflict with the Manual arise.

Originally published 2 November 2023

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