Corporate governance is a critical enabler for achieving sustainability and long-term value within FinTech enterprises, both small and large.
For small FinTech start-ups, developing strong foundations of corporate governance is key for transforming a great tech or business idea into a sustainable enterprise that is not dependent solely on the founder. And for larger FinTech enterprises, enhancing corporate governance arrangements is critical for achieving scale in a manner that balances growth with ensuring long-term value.
Robust corporate governance arrangements are essential for organisations to ensure accountability, transparency and compliance. They are a foundational element of smart management, and are a key consideration in regulatory oversight.
Corporate governance has consistently been a top priority for the Malta Financial Services Authority’s supervision of FinTech enterprises. It therefore comes as little surprise that the recently revised Chapter 3 of the Financial Institutions Rulebook (FIR/03) further expands on sound corporate governance arrangements and regulatory expectations in this space.
The revised rulebook focuses on several fundamental principles of sound corporate governance, including:
The revised FIR/03 rulebook places significant emphasis on the composition and role of the Board of Directors in ensuring the long-term sustainability of payment service providers and e-money institutions. A balanced board is considered a linchpin for a well-managed FinTech enterprise.
The following are some of the key expectations for the Board of Directors:
Our FinTech team, comprising industry specialists, can help you to understand and navigate these evolving operational challenges and regulatory expectations, and to make sense of them within the broader regulatory landscape. We can support you with: