Confidentiality in the accountability of Maltese public listed entities

Abstract

Purpose: The main objective of this study is to assess the principle of confidentiality and the importance attached to it in a professional and business context. Such an analysis is to be based on the views of financial controllers within Maltese listed entities (equity based) and external auditors who provide auditing services to such entities. Moreover this study seeks to evaluate whether the regulatory framework, in particular the code of ethics, includes adequate provisions with respect to confidentiality. Warrant holders are bound by confidentiality rules and thus this study seeks to shed some light as to whether confidentiality impinges on certain professional areas such irregularity disclosure, benchmarking, financial reporting, auditor appointment and changes. The study is further augmented by the assessment of the warrant holder and to what extent are they willing to go beyond minimum legal requirements. Design: This study aims at collecting information from those individuals who have the main responsibility for the finance function, by means of indepth semi-structured interviews. Findings: From the study, it emerged that the principle of confidentiality is of utmost importance for warrant holders. Such a principle is important for such organisations and is being taken into consideration throughout their professional dealings. Moreover, the findings show that in certain areas confidentiality does not affect them and thus they will instantly go beyond the minimum legal requirements by disclosing such information. In other areas, furthermore, warrant holders seem very much to resist looking after the public interest. Conclusions: From the study it can be deduced that there is still high resistance on the part of warrant holders in some areas to look after the public interest. Value: This study is original, since it is empirically the first study which analyses the extent to which confidentiality affects interviewees in disclosing additional information over and above the minimum that is required.