On 19th August 2025 the Malta Financial Services Authority (“MFSA”) has published the findings of a thematic review into compliance of Financial Institutions with the Payment Account Regulations (SL 371.18). The review focused on the three Institutions which presently offer payment accounts that enable consumers to:
- Deposit funds;
- Withdraw cash; and
- Execute and receive payment transactions, including credit transfers involving third parties.
The primary objective was to assess adherence to rules concerning the Fee Information Document (“FID”), provided before an account is opened, and the Statement of Fees (“SOF”), provided annually. The Authority also evaluated the accuracy of fee information on its public comparison website.
Key Findings and Observations:
1. Fee Information Document
While most institutions were largely compliant with the requirements set out in the Commission Implementing Regulation (EU) 2018/34 on the standardised presentation format of the Fee Information Document, the MFSA identified several key areas of concern. The MFSA underscores that the Fee Information Document (FID) must be provided to consumers well in advance of signing a payment account contract, as mandated by law.
To ensure clarity, institutions must lead with the official service name followed by any brand name. Furthermore, the required Glossary of Terms should be a separate, standalone document provided in both English and Maltese, plus any other language agreed upon with the consumer. This approach preserves the standard FID format while ensuring customers have clear and accessible information.
2. Statement of Fees (SOF):
One institution was found to be non-compliant with the Regulations specified in the Commission Implementing Regulation (EU) 2018/33 outlining in detail how the Statement of Fees should be presented to customers. The MFSA emphasised that the section titled ‘Detailed Statement of Fees Paid on the Account’ includes a comprehensive and accurate list of all fees, as presented in the FID.
3. Fees Comparison Tool:
The review found that not all institutions regularly update their fee information on the MFSA’s public online Comparison Tool. In one case, a particular institution stopped offering a particular product, and it was still included in the Comparison Tool. The Authority stressed the legal obligation for providers to ensure the tool reflects current and accurate data.
4. Misleading References on Financial Institutions as to their Services
The MFSA raised serious concerns over institutions using terminology like “Bank”, “Banking”, “Mobile Banking” or “Bank Account,” which could mislead consumers into believing they are dealing with a Bank/Credit Institution. Financial Institutions are expected to make it clear to their customer that they are not banks, they are not authorised under the Banking Act, and most critically, deposits with them are not protected by the Depositor Compensation Scheme.
Moreover, Financial Institutions were instructed to avoid any suggestions that their payment accounts are for saving or accumulating wealth, as they do not pay interest. The primary purpose is to hold funds for payment transactions.
The Way Forward
The MFSA has instructed the relevant Institutions to rectify the identified shortcomings immediately. All Financial Institutions falling under these regulations are expected to conduct a gap analysis to ensure full compliance with the Commission Implementing Regulation EU 2018/34, the Commission Implementing Regulation EU 2018/33 and the Payment Accounts Regulations.
The Authority confirmed it will follow up through future supervisory interactions to ensure ongoing compliance. Institutions seeking clarification are advised to contact the MFSA’s Conduct Supervision Function [email protected].
