Key observations
The MFSA identified several areas of concern namely:
Nearly 30% of issuers announced board meetings for financial report approvals just 1–5 days in advance, despite having prior knowledge of these dates. The MFSA encourages the publication of financial calendars prior to, or in the beginning of financial years as best practice.
Some issuers failed to publish required announcements or omitted key attachments (such as interim financial statements or financial analysis summaries).
Equity issuers averaged 12.94 announcements for 2024, with bond issuers trailing further behind at 9.53. The MFSA feels that the frequency of announcements is low relative to the size of the market, especially since the number of listed entities has increased but disclosure levels remain similar to previous years.
14% of issuers uploaded scanned documents, including annual reports, limiting accessibility and usability. This practice is strongly discouraged by the MFSA since it lacks such critical features as text-search functionality and hyperlinking.
69% of equity issuers did not disclose information on the acceptance of director nominations.
MFSA’s expectations
The MFSA urges all listed companies to reassess their communication practices. Company announcements are a key tool for maintaining market transparency and investor trust. Issuers are expected to:
- Ensure announcements are timely, complete and accessible;
- Avoid promotional or misleading content;
- Provide clear and relevant information in line with Chapter 5 of the Capital Markets Rules.
The MFSA also reminds issuers that the list of matters requiring disclosure under CMR 5.16 is not exhaustive, and consequently, Boards of Directors should continue to exercise judgment in determining what constitutes information warranting disclosure.
Final thoughts
Embracing a culture of disclosure goes beyond mere compliance – it can be a strategic advantage in building investor trust and fostering long-term resilience. The MFSA’s recent communication serves as a timely reminder for listed entities to elevate their investor engagement and communication strategies. Our team at PwC Malta is here to guide you through these expectations, enhance your disclosures, and position your business as a trusted, investor-friendly organisation.
This article was written by Senior Assiociate Naomi Aquilina
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