The Malta Financial Services Authority (MFSA) has published a new General Code of Conduct for decision makers in the Financial Services Industry, setting out clear principles aimed at reinforcing governance standards, ethical behaviour and organisational culture across entities operating within Malta’s financial sector.

The document is intended to guide board members, executives, senior management and others with decision-making responsibilities in entities authorised, licensed or supervised by the MFSA, as well as listed companies. It outlines the Authority’s expectations on how decision makers should approach their roles in an increasingly complex and highly regulated environment.

At the heart of the code are five core values which the MFSA expects decision makers to embed within their organisations: Integrity; guiding complex decision-making; accountability and transparency; commitment to compliance and legal standards; and respect and fairness.

The MFSA stresses that the code is not intended to introduce new rules or override existing legal or regulatory obligations. Instead, it adopts a principles-based and proportional approach, recognising the wide range of entities operating within the financial services industry.

The Authority notes that the code should be applied as a best-practice framework, commensurate with the nature and complexity of the decisions being taken. However, it also makes clear that adherence to the Code will be considered during supervisory interactions, inspections and when assessing the compliance culture of an entity’s leadership. Where material shortcomings are identified, failures to observe the Code may be taken into account when determining supervisory measures or administrative sanctions.

it sets out expectations that decision makers:

• act with integrity and avoid conflicts of interest;
• make informed, well-documented decisions that consider long-term impacts on stakeholders;
• be prepared to challenge colleagues where necessary;
• ensure that financial positions are presented in a true and fair manner;
• remain vigilant on compliance areas such as AML, data protection, ESG, artificial intelligence and cyber risks;
• foster a culture of respect, inclusion and open dialogue.

The code also emphasises that decision makers must dedicate sufficient time to their roles, clearly understand their responsibilities, and distinguish between multiple roles where applicable.

Governance, culture and trust

The MFSA frames the code as a cornerstone for strengthening trust, stability and credibility within Malta’s financial services ecosystem. By encouraging decision makers to internalise these values, the authority aims to promote a stronger governance culture that extends beyond technical compliance and into ethical conduct and organisational behaviour.

The document also places responsibility on boards to ensure that employees are aware of the core values expressed in the Code, signalling that the principles are intended to influence wider organisational culture, not only boardroom conduct.

Commenting on the publication, John Sammut, Senior Technical Advisor – Internal Audit at the MFSA, noted: “By following this General Code, Decision Makers demonstrate a commitment to exemplary governance and responsible corporate conduct. Such commitment is critical to building trust, strengthening resilience, and supporting the long-term sustainability of Malta’s financial services sector.”

The MFSA also confirmed that the document was shaped through a public consultation process, with stakeholder feedback incorporated into the final version.