MFSA calls for stronger disclosure practices among listed companies

The Malta Financial Services Authority (MFSA) has issued a directive to companies listed on the Malta Stock Exchange, urging them to significantly improve how they communicate with investors and the public. The move comes after the MFSA conducted a thematic review throughout 2024, assessing the quality, frequency, and accessibility of company announcements issued by 90 listed entities under its supervision.

The results, published in a “Dear CEO Letter”, revealed multiple shortcomings in how listed companies disclose key developments. These included delays in announcing board meetings and financial results, a lack of supporting documents such as interim financial statements and financial analysis summaries, and the continued use of scanned, inaccessible documents. In some cases, shareholder communication around director nominations was found to be unclear or entirely absent.

To address these issues, the MFSA has outlined specific expectations for issuers. These include publishing annual financial calendars, ensuring announcements are timely and informative, using accessible digital formats, and clearly communicating shareholder rights and governance procedures.

The Authority also encourages companies to issue more frequent updates – including quarterly operational summaries, ESG developments, and major milestones – to enhance market transparency and investor confidence.

“Transparency is essential to maintaining trust in our capital markets,” said Lorraine Vella, Head of Capital Markets Supervision at the MFSA. “Through this review, we aim to guide listed companies toward more effective, timely, and accessible disclosures that serve the interests of all market participants.”

The MFSA stated that it will continue to monitor disclosure practices and support companies through guidance, supervisory meetings, and further reviews. Stakeholders seeking more information may contact the Authority at transparency@mfsa.mt.