New Regulations for Credit Institutions and Financial Institutions and a Conduct of Business Rulebook for Credit Institutions offering Retail Products and Services Applicable from 6 October 2026

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt New Regulations for Credit Institutions and Financial Institutions and also a Conduct of Business Rulebook for Credit Institutions offering Retail Products and Services - Applicable from 6 October 2026 Introduction and applicability:
This Circular is addressed to:
(a) All Credit Institutions offering consumer credit agreements, credit agreements relating to residential immovable property and payment accounts, which fall within scope of the following Directives:

• The Mortgage Credit Directive (Directive 2014/17/EU) hereinafter referred to as MCD;
• The Payment Accounts Directive (Directive 2014/92/EU) hereinafter referred to as PAD;
• The Consumer Credit Directive (Directive 2008/48/EC) hereinafter referred to as CCD I
  and, furthermore, falling within scope of the Conduct of Business Rulebook for Credit Institutions Offering Retail Products and Services (herein after referred to as the Rulebook) which has now come into force and applicable from 6 October 2026. (b) This Circular is also addressed to all Financial Institutions falling within scope of the above captioned three directives. Background (Attn to Credit Institutions) Reference is made to the MFSA Consultation and respective Feedback Statement below issued by the MFSA on 19 February 2024 and 28 February 2025 respectively:
• Consultation Document on Proposed Conduct of Business Rules for Enhanced Protection of
  Consumers in the Provision of Banking Products and Services by Credit Institutions
• Feedback Statement on the Consultation for the Conduct of Business Rulebook for Credit
  Institutions Offering Retail Products and Services whereby Credit Institutions were informed that the Rulebook was expected to come into force on 1 March 2026. In this regard, Credit Institutions were later on, also notified by means of a notice published on the MFSA website, that the Rulebook with the applicable targeted date of 1 March 2026 was postponed to a future date, yet to be communicated by the MFSA. 8 October 2026

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt New Regulations and Rulebook – Came into force on 6 October 2026 (Attn to both Credit Institutions and Financial Institutions) In this regard, both Credit Institutions and Financial Institutions referenced further above are hereby being informed that the below new Regulations have been published and came into force on 6 October 2026:
(a) Regulations transposing MCD:
(i) L.N. 261 of 2026 - Financial Institutions Act (Credit Agreements for Consumers relating to Residential Immovable Property) Regulations, 2026:

• Newly issued under the Financial Institutions Act
• These Regulations repealed the Credit Agreements for Consumers Relating to
  Residential Immovable Property Regulations (S.L. 378.10) (ii) L.N. 262 of 2026 - Banking Act (Credit Agreements for Consumers relating to Residential Immovable Property) Regulations, 2026:
• Newly issued under the Banking Act
  (iii) L.N. 263 of 2026 - Mortgage Credit Intermediaries (Admission) Regulations, 2026
• Newly issued under both the Banking Act and the Financial Institutions Act
  (iv) L.N. 264 of 2026 - European Passport Rights for Mortgage Credit Intermediaries Regulations, 2026:
• Newly issued under both the Banking Act and the Financial Institutions Act
  (b) Regulations transposing PAD:
  (i) L.N. 258 of 2026 - Credit Institutions and Financial Institutions (Payment Accounts) Regulations, 2026:
• Newly issued both under the Banking Act and Financial Institutions Act.
• It is important to note that Part V and VI thereof will come into force on 6 December

• These Regulations repealed the Credit Institutions and Financial Institutions (Payment
  Accounts) Regulations (S.L. 371.18 and S.L. 376.08) (c) Regulations transposing CCD I:
  (i) S.L. 376.09 - Financial Institutions Act (Consumer Credit) Regulations:
• Newly Issued under the Financial Institutions Act
• Brought into force by L.N. 259 of 2026 - Commencement Notice.
  (ii) S.L. 371.23 - Banking Act (Consumer Credit) Regulations:
• Newly Issued under the Banking Act
• Brought into force by L.N. 260 of 2026 - Commencement Notice

Circular
Triq l-Imdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt Furthermore, Credit Institutions are hereby being informed that in view of the above Regulations, the Rulebook has now come into force and applicable from 6 October 2026. Contacts Should you have any queries regarding the above, please do not hesitate to contact us via:
conduct.policy@mfsa.mt.