MFSA Revamps Corporate Governance Manual for Directors of Collective Investment Schemes

Author: Jessica Camilleri

On the 30^th of October 2023, the MFSA, in its attempt to further reinforce its governance strategies, has issued an amended Corporate Governance Manual for Directors of Collective Investment Schemes in order to effectively implement adequate codes of conduct within the financial services industry.

The Authority had previously issued a Corporate Governance code in August 2022 with the goal of maintaining a cross sectoral framework which encompasses all MFSA regulated entities on a more generic basis. The MFSA has, in its efforts to achieve this goal, acknowledged that collective invest schemes present certain characteristics which require a specific set  principles. This manual, in turn, acts as a reflection of the Authority’s supervisory expectations relating to proposed best practices and adopted compliance mechanisms which are expected to be carried through by all collective investment schemes licensed in Malta including UCITS, Professional Investor Funds (PIFs) and Alternative Investment Funds (AIFs).

Though not meant to be exhaustive, Collective Investment Schemes should utilize the guidelines provided in this Manual to craft their own optimal corporate governance procedures tailored to them.