Regulatory Alerts2020-03-05
Added · Updated
Circular to Credit Institutions on the Issuance of a New Banking Rule
The Malta Financial Services Authority issued Banking Rule BR/22 to mandate standardized complaints-handling procedures for credit institutions operating in Malta. The rule requires institutions to establish accessible complaint management policies, maintain detailed registers, and adhere to specific timelines for investigating and resolving consumer grievances. Additionally, the regulation introduces obligations for public disclosure of complaint details and ensures data protection compliance during the handling of consumer inquiries.
Circular Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Circular to Credit Institutions on the Issuance of a New Banking Rule The Authority is hereby issuing a new Banking Rule BR/22 Complaints-Handling Procedures for Credit Institutions a The scope of this new Rule is to adopt the provisions in relation to credit institutions prescribed in the Joint Guidelines by the European Security and Markets Authority and the European Banking Authority for Complaints-Handling for the securities and the banking sector (04/10/2018 JC 2018 35) and to provide for ancillary matters thereto. The new Rule will be applicable to the following: i) credit institutions licensed under the Banking Act (Chapter 371 of the Laws of Malta); ii) credit institutions authorised in another Member State exercising their right to provide services or to establish a branch in Malta under the European Passport Rights for Credit Institutions Regulations and; iii) branches established in Malta of credit institutions authorised in a third country, insofar as such branches take deposits from the retail sector. The main purpose of the new Rule is to provide an easily accessible platform for the consumer of credit institutions to lodge their complaints before proceeding to other judicial forums or other Alternative Dispute Resolution mechanisms. In terms of this new Rule, credit institutions are obliged to put in place a complaint management policy as well as to have a complaints management function which enables the credit institution to investigate complaints fairly and any possible conflicts of interest to be identified. The new rule also specifies, inter alia, registration procedures where credit institutions need to have an adequate Register with information as specified in the new Rule. Furthermore, a new reporting requirement is being introduced for credit institutions to report complaints to the Authority upon request. In addition, other requirements include the publication of details in relation to complaints on the website, brochures, pamphlets, etc. and an internal follow-up of complaints-handling mechanism which must be introduced by credit institutions. The Rule will also be introducing procedures for responding to complaints within specific timelines, as well as the method for credit institutions to investigate the complaints and a step by step guide as to how such complaints should be replied to and settled. 5 March 2020
Circular Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Finally, a provision is being inserted for data protection purposes when handling complaints so as to ensure the protection of personal data of consumers. This new Rule shall come into force with immediate effect. Any queries in relation to the above should be directed to Banking Supervision (Policy Section) on bsupolicy@mfsa.com.mt and/or Conduct Supervision on conductbanking@mfsa.mt. This Circular shall not be construed as a replacement of the provisions of the new Banking Rule. The new Banking Rule shall prevail over this Circular in case of conflict.