ACT No. VI of 2026 AN ACT to set-up the Credit Review Office and to provide for any matter ancillary and consequential thereto.

I assent.

(L.S.)

MYRIAM SPITERI DEBONO

President

27th March, 2026

ACT No. VI of 2026

AN ACT to set-up the Credit Review Office and to provide for any

matter ancillary and consequential thereto.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled and by the authority of the same, as follows:-

(1)

The short title of this Act is the Credit Review Office Short title and

commencement.

Act, 2026.

(2) This Act shall come into force on such date or dates as the

Minister responsible for the economy and the Minister responsible for

finance may, by notice in the Gazette establish, and different dates may

be so established for different provisions and, or purposes of this Act.

(artikolu 17)

Karta

1. Klijenti jew klijenti potenzjali li jridu japplikaw għal faċilità Informazzjoni

ta’ kreditu għandhom jissottomettu applikazzjoni bil-miktub li l-forma meħtieġa.

u s-sustanza tagħha għandhom jiġu stabbiliti mill-istituzzjoni ta’ self.

2. Wara li tirċievi l-applikazzjoni msemmija fil-partita 1, l-

istituzzjoni ta’ self għandha teżamina tali applikazzjoni u twieġeb billi

tipprovdi lista ta’ dokumentazzjoni u informazzjoni meħtieġa sabiex

tipproċessa l-applikazzjoni, sa mhux aktar tard minn sebat (7) ijiem

mid-data tal-irċevuta tal-istess.

3. (1) It-tip u l-livell ta’ informazzjoni meħtieġa għandhom

ivarjaw skont il-każ, skont in-natura tal-attività tal-klijent jew klijent

potenzjali u l-kondizzjonijiet speċifiċi marbuta ma’ kull applikazzjoni

ta’ kreditu. B’mod ġenerali, l-istituzzjoni ta’ self għandha tirrikjedi

dan li ġej

(a) dokumenti ta’ identifikazzjoni fejn l-applikant ikun

persuna fiżika;

(b) dikjarazzjonijiet ta’ dħul fejn l-applikant ikun

persuna fiżika;

(ċ)

kontijiet finanzjarji u għall-ġestjoni aġġornati;

(d)

pjan komprensiv u dettaljat tan-negozju jew tal-

attività;

(e) informazzjoni dwar l-esperjenza tal-klijent jew

klijent potenzjali, l-għarfien tiegħu tas-suq u l-għarfien tiegħu

tar-riskji u tal-opportunitajiet li jistgħu jinqalgħu fil-perjodu

qasir u medju b’rabta man-negozju tal-klijent jew klijent

potenzjali;

(f) informazzjoni dwar l-istorja tal-kreditu tal-klijent

jew klijent potenzjali; u

(g) informazzjoni fir-rigward tal-ħtiġijiet ta’ self tal-

klijent jew klijent potenzjali, inkluż l-ammont li l-klijent jew

klijent potenzjali jrid jissellef u l-għan li għalih qed jintalbu l-

fondi.

(2) Kwalunkwe data personali pproċessata mill-istituzzjoni ta’

self għandha tkun konformi bis-sħiħ mad-dispożizzjonijiet tar-

Regolament (UE) 2016/679 u l-Att dwar il-Protezzjoni u l-Privatezza

tad-Data, inklużi r-regolamenti magħmula taħtu, u d-drittijiet u l-

libertajiet fundamentali ta’ suġġetti ta’ data.

4. L-istituzzjoni ta’ self tista’ teħtieġ kollateral mill-klijent jew

klijent potenzjali għall-finijiet li tiġi żgurata l-faċilità ta’ kreditu

mitluba jew b’rabta ma’ kwalunkwe talba sabiex tiġi ristrutturata

faċilità ta’ kreditu eżistenti. Ir-rekwiżiti speċifiċi tal-kollateral

għandhom jiġu kkunsidrati mill-istituzzjoni ta’ self matul il-

valutazzjoni tal-applikazzjoni sottomessa mill-klijent jew klijent

potenzjali u għandhom jiġu komunikati mill-istituzzjoni ta’ self fl-

istess avviż ta’ konferma.

5. Fejn klijent eżistenti jitlob ir-ristrutturar ta’ faċilità eżistenti

mill-istess istituzzjoni ta’ self, tali talba għandha tispjega b’mod ċar

għaliex tali ristrutturar huwa meħtieġ u jekk il-klijent huwiex qiegħed

jesperjenza kwalunkwe diffikultà sabiex ilaħħaq mal-impenji eżistenti

u, jew il-pagamenti tiegħu.

6. L-istituzzjoni ta’ self għandha tkun mitluba tirrikonoxxi l-

irċevuta tal-applikazzjoni u d-dokumentazzjoni ta’ akkumpanjament fi

żmien sebat (7) ijiem mid-data li tiġi riċevuta applikazzjoni kompluta.

7. L-istituzzjoni ta’ self għandha tavża lill-klijent jew lill-klijent

potenzjali bir-riżultat tal-valutazzjoni tagħha bil-miktub. Dan l-avviż

għandu jiġi kkommunikat mill-istituzzjoni ta’ self sa mhux aktar tard

minn sittin (60) jum mid-data tas-sottomissjoni ta’ applikazzjoni

kompluta, sostnuta debitament bid-dokumenti u l-informazzjoni kollha

mitluba mill-istituzzjoni ta’ self, diment li, mill-inqas ġimgħa (1) qabel

ma jiskadi l-imsemmi perjodu, l-istituzzjoni ta’ self ma tinformax lill-

klijent jew lill-klijent potenzjali li l-istituzzjoni ta’ self teħtieġ perjodu

addizzjonali sabiex tipprovdi l-valutazzjoni tagħha, liema perjodu

għandu jkun indikat fl-istess avviż.

8. L-istituzzjoni ta’ self għandha tuża l-informazzjoni provduta

mill-applikant sabiex twettaq valutazzjoni tal-applikazzjoni. Fil-

valutazzjoni tagħha, l-istituzzjoni ta’ self għandha tadotta approċċ

raġonevoli iżda wieħed kummerċjali, proporzjonat mal-livell ta’

kreditu mitlub, it-terminu tal-faċilità u l-profil ta’ riskju ġenerali tal-

applikant.

9. Fejn applikazzjoni tiġi approvata, l-avviż ta’ konferma

għandu jiġi kkomunikat b’mezz durabbli u għandu jinkludi t-termini u

l-kondizzjonijiet kollha applikabbli marbuta mal-faċilità, inkluż id-

drittijiet jew il-ħlasijiet kollha.

10. Fil-każ li l-applikazzjoni tiġi miċħuda jew miċħuda

parzjalment, l-istituzzjoni ta’ self għandha tavża lill-klijent jew lill-

klijent potenzjali b’mezz durabbli, filwaqt li tispjega b’mod ċar ir-

raġunijiet li għalihom l-istituzzjoni ta’ self ma tistax tissodisfa t-talba,

għajr f’każijiet fejn dan jirriżulta fi ksur ta’ kwalunkwe leġiżlazzjoni

fir-rigward tal-ġlieda kontra l-ħasil tal-flus u l-ġlieda kontra l-

finanzjament tat-terroriżmu, kwalunkwe proċeduri ta’

implimentazzjoni, linji gwida u ftehim internazzjonali li jorbtu lill-

istituzzjoni li ssellef, u tinforma lill-klijent jew lill-klijent potenzjali

dwar il-proċedura tal-ilmenti tal-istituzzjoni ta’ self, inkwantu

applikabbli.

11. F’ każ li

Proċess ta’

reviżjoni intern.

(a) klijent jew klijent potenzjali jirċievi rifjut formali

wara talba għal faċilità ta’ kreditu;

(b) istituzzjoni ta’ self tkun irtirat jew naqqset faċilità ta’

kreditu eżistenti;

(ċ) klijent jew klijent potenzjali jirċievi rifjut formali

minn istituzzjoni ta’ self wara talba għal ristrutturar ta’ faċilità

ta’ kreditu eżistenti; jew

(d) klijent jew klijent potenzjali ma jkunx irċieva

deċiżjoni finali mill-istituzzjoni ta’ self f’perjodu ta’ żmien

provdut mill-istess istituzzjoni ta’ self skont il-partita 7 wara

talba għal faċilità ta’ kreditu jew għal ristrutturar ta’ faċilità ta’

kreditu eżistenti mill-klijent jew klijent potenzjali,

il-klijent jew il-klijent potenzjali jista’ jressaq ilment mal-

istituzzjoni ta’ self u jitlob reviżjoni tad-deċiżjoni.

12. L-ilmenti għandhom jiġu sottomessi bil-miktub lill-

istituzzjoni ta’ self fl-indirizz reġistrat tagħha, liema lment għandu

jispjega r-raġunijiet li abbażi tagħhom l-ilmentatur jrid li d-deċiżjoni

tal-istituzzjoni ta’ self tiġi riveduta.

13. L-ilmenti għandhom jiġu sottomessi fi żmien xahar (1) mid-

data tan-notifika tad-deċiżjoni, fil-forma u bil-kontenut determinati

mill-istituzzjoni ta’ self. L-istituzzjoni ta’ self għandha tirrikonoxxi l-

irċevuta tal-ilment fi żmien jumejn (2).

14. L-ilment għandu jiġi kkunsidrat minn uffiċjal indipendenti,

jew grupp ta’ uffiċjali li ma kinux involuti fid-deċiżjoni oriġinali

kkomunikata mill-istituzzjoni ta’ self.

15. Jekk

għall-investigazzjoni

tal-ilment

tkun

meħtieġa

sottomissjoni ta’ aktar informazzjoni mill-ilmentatur, l-istituzzjoni ta’

self għandha tindika żmien raġonevoli sa meta tali informazzjoni

għandha tiġi sottomessa.

16. L-istituzzjoni ta’ self għandha tirrevedi l-ilment sottomess

mill-ilmentatur u għandha tinforma lill-ilmentatur bir-riżultat tal-

ilment sa mhux aktar tard minn ħmistax (15)-il jum mid-data tal-

irċevuta tal-ilment u d-dokumentazzjoni mitluba mill-istituzzjoni ta’

self. Jekk l-investigazzjoni tal-ilment ma tkunx tlestiet fi żmien

ħmistax (15)-il jum, l-istituzzjoni ta’ self għandha tinforma lill-

ilmentatur b’tali fatt qabel ma jiskadi tali perjodu.

17. Il-partiti 11 sa 16 ta’ din il-karta, it-tnejn inklużi, ma

għandhomx japplikaw għall-istituzzjonijiet ta’ self li ma humiex

meħtieġa li jkollom proċeduri dwar il-ġestjoni tal-ilmenti u l-funzjoni

ta’ ġestjoni tal-ilmenti skont il-liġi.

L-Uffiċċju għall-Analiżi tal-Kreditu

18. Klijent jew klijent potenzjali jista’, fi żmien disgħin (90) jum

minn meta jkun eżawrixxa r-rimedji kollha għad-dispożizzjoni tiegħu

skont din il-karta, jekk l-applikazzjoni tiegħu titqies bħala

applikazzjoni eliġibbli skont l-Att, jissottometti applikazzjoni bil-

miktub lill-analista tal-kreditu fi ħdan l-Uffiċċju għall-Analiżi tal-

Kreditu.

19. L-applikazzjoni sottomessa għandha tkun fil-forma u bil-

lingwa stabbilita mill-Uffiċċju u għandha tkun akkumpanjata mid-

dokumenti mitluba fiha, inkluż id-dokumentazzjoni kollha pprovduta

mill-applikant eliġibbli lill-istituzzjoni ta’ self u l-osservazzjonijiet u t-

tweġibiet provduti mill-istituzzjoni ta’ self, inkwantu dawn ikunu

disponibbli.

20. Kwalunkwe applikazzjoni sottomessa skont il-partita 19

għandha

(a) tidentifika d-dettalji tal-istituzzjoni ta’ self li kontriha

qiegħda ssir l-applikazzjoni;

(b) tidentifika

r-raġunijiet

għas-sottomissjoni

tal-

applikazzjoni; u

(ċ) titlob lill-analista tal-kreditu sabiex jistabbilixxi, sa

fejn permess mil-liġi, jekk id-deċiżjoni komunikata lilu mill-

istituzzjoni ta’ self fir-rigward tal-applikazzjoni sottomessa mill-

applikant eliġibbli kinitx skont il-politiki ta’ kreditu tal-istituzzjoni

ta’ self u fil-każ fejn l-istituzzjoni ta’ self tonqos milli tieħu

deċiżjoni finali fiż-żmien stabbilit mill-istituzzjoni ta’ self skont il-

karta tagħha wara talba għal faċilità ta’ kreditu mill-applikant

eliġibbli, jistabilixxi r-raġuni għal tali dewmien sabiex issir tali

deċiżjoni u jekk tali dewmien huwiex iġġustifikat.

21. L-osservazzjonijiet u l-konklużjonijiet tal-Uffiċċju għandhom

jieħdu l-forma ta’ rakkomandazzjoni li ma għandhiex torbot lill-

partijiet.

Mgħoddi mill-Kamra tad-Deputati fis-Seduta Nru 450 tal-25 ta’

Marzu, 2026.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Skrivan tal-Kamra tad-Deputati

(1)

In this Act, unless the context otherwise requires

Interpretation.

"charter" means the document to be drawn up by each

lending institution in accordance with article 17;

"credit application" means an application submitted by a

customer or potential customer of a lending institution for the

purpose of obtaining a credit facility;

"credit facility" means the lending of a sum of money by

way of an advance, overdraft or loan, or any other line of credit

required by the eligible applicant for working capital

requirements or other general business purposes but excludes

discounting of bills of exchange and promissory notes,

guarantees, indemnities, acceptances, bills of exchange endorsed

pour aval and financial leasing;

"credit reviewer" means any body or other person

designated for this purpose by the Minister, by notice in the

Gazzette made in accordance with this Act, which shall be

responsible for overseeing the implementation of the Office and

shall have the functions established in this Act or any regulations

made thereunder;

"customer" and, or "potential customer" means a customer

or a potential customer of a lending institution;

"durable medium" means any instrument which enables

the storage of information addressed personally to a particular

person in a way accessible for future reference and for a period

of time adequate for the purposes of the information contained

therein and allows the unchanged reproduction of the

information stored;

"eligible applicant" means

(a) a trader who is not a member in a commercial

partnership and who resides in Malta;

(b) a commercial partnership constituted in Malta

in accordance with the Companies Act, or any law which

may from time to time be applicable; or

(c) any other person as the Minister may from time

to time prescribe by regulations made under this Act;

"eligible application" means an application submitted by

an eligible applicant who

(a) has received a formal refusal by a lending

institution following a request for a credit facility;

(b) has not received a final decision by a lending

institution within the time period stipulated by the lending

institution in accordance with its charter following a

request for a credit facility by the eligible applicant;

(c) has been formally notified, through a durable

medium, by a lending institution that an existing credit

facility has been withdrawn or reduced; or

(d) has received formal refusal, through a durable

medium, by a lending institution following a request for

the restructuring of an existing credit facility;

(e) has not received a final decision by a lending

institution within the time period stipulated by the lending

institution in accordance with its charter following a request

for the restructuring of an existing credit facility

Provided that "eligible application" shall not include

(a) decisions by lending institutions to refuse

applications for credit facilities due to restrictions

emanating from the European Union state aid rules;

(b) decisions by lending institutions relating to

non-performing credit facilities;

(c) decisions by lending institutions refusing,

withdrawing, reducing or refusing to restructure credit

facilities in excess of two million euro (€2,000,000);

(d) applications refusing, withdrawing, reducing or

refusing to restructure credit facilities of less than five

thousand euro (€5,000); and

(e) decisions by lending institutions to refuse

applications for credit facilities on the basis that granting

such facilities would breach anti-money laundering and

combating the funding of terrorism legislation, any

implementing procedures, guidelines and any international

agreements binding on the lending institutions;

"lending institution" means any entity licensed by the

Malta Financial Services Authority to carry out the business of

banking in terms of the Banking Act or to grant credit facilities Cap.

371. in terms of the Financial Institutions Act;

"Malta Financial Services Authority" means the authority

established in terms of the Malta Financial Services Authority Cap. 330.

Act;

"Minister" means the Minister responsible for the

economy;

"non-performing facility" means any credit facility that is

classified as a non-performing exposure in accordance with the

Commission Implementing Regulation (EU) 2021/451 of 17

December 2020 laying down implementing technical standards

for the application of Regulation (EU) No. 575/2013 of the

European Parliament and of the Council with regard to

supervisory reporting of institutions and repealing Implementing

Regulation (EU) No. 680/2014;

"Office" means the Credit Review Office established in

accordance with article 3;

"Regulation (EU) 2016/679" means Regulation (EU) 2016/

679 of the European Parliament and of the Council of 27 April

2016 on the protection of natural persons with regard to the

processing of personal data and on the free movement of such

data, and repealing Directive 95/46/EC (General Data Protection

Regulation).

(2) Words and expressions used in this Act and in any regulations

made thereunder with reference to any other law shall, so far as

necessary, have the same meaning as assigned to them in the

respective law.

(3) If there is any conflict between the English and Maltese texts

in this Act and in any regulations made thereunder, the English text

shall prevail.

PART II

Establishment of the Credit Review Office

(1)

There shall be established the Credit Review Office.

(2) The Office shall be made up of the credit reviewer and of such

officers and staff members appointed or employed with the Office.

(1)

The Office shall have the following functions

(a) to ascertain that a customer or potential customer

making a complaint in accordance with article 9 qualifies as an

eligible applicant;

(b) to ascertain that an application submitted by an

eligible applicant is an eligible application in accordance with

this Act;

(c) to review and investigate eligible applications

submitted by eligible applicants, including by the means of

mediation in accordance with article 10 and, where necessary, by

issuing a recommendation in accordance with article 14;

(d) to inform the public through electronic means and,

where possible, by means of written guidelines with regard to the

functions carried out by the Office, the role of the credit

reviewer, the contact details of the Office, the procedure

followed by the credit reviewer and, or the Office in relation to

eligible applications, and other information concerning the

Office with the purpose of informing the public on the services

offered by the Office;

(e) to provide the means to enable an eligible applicant

to submit a complaint electronically or by recorded delivery

through the post or courier service;

(f) to provide the means to enable the exchange of

information between an eligible applicant and a lending

institution electronically or by recorded delivery through the post

or courier service;

(g) to ensure that any personal data processed by the

Office in the course of proceedings fully complies with

Regulation (EU) 2016/679 and the Data Protection Act, Cap. 586.

including any regulations made thereunder;

(h) to establish rules and guidelines in relation to the

implementation of the regulations made in terms of article 19;

(i)

to publish a yearly report of official statistics; and

(j) to carry out such other functions as are assigned to it

under this Act or any other law.

(2) In carrying out his functions under this Act, the credit

reviewer shall

(a) act independently and impartially and shall not be

subject to the direction or control of any other person or

authority;

(b) determine complaints submitted in accordance with

article 9 by reference to what in his opinion is fair, equitable and

reasonable in the particular circumstances and substantive merits

of the case;

(c) consider and have due regard, in such manner as he

deems appropriate to applicable and relevant laws, rules and

regulations, in particular those governing the conduct of a

lending institution, including guidelines issued by national and

European Union supervisory authorities, good industry practice

and reasonable and legitimate expectations of eligible applicants

and this with reference to the time when it is alleged that the

facts giving rise to the complaints occurred;

(d) deal with a complaint in a procedurally fair, informal,

economical and expeditious manner.

(3) The credit reviewer may delegate in writing to any person

engaged with the Office any of its functions under this Act.

(4) The credit reviewer shall employ sufficient communication

media for the purposes of its obligations arising from sub-article (1).

The yearly report shall contain

Yearly report.

(a)

summarised reports establishing the main terms of

each complaint received by the Office and the resolution thereof,

without including personal data of natural persons and the details

of the lending institution;

(b) statistical data, both in absolute terms and in terms

relative to the size of the lending institution including therein the

number of complaints filed against each individual lending

institution and their resolution, where applicable, and the lending

institution shall be identified for the purpose of this paragraph;

and

(c) data emanating from any surveys conducted or

commissioned by the Office on the state of accessibility of

finance by eligible applicants.

The credit reviewer shall draw up a yearly report and a copy

of the said yearly report is to be laid on the Table of the House of

Representatives by the Minister within six (6) months from the end of

each calendar year and shall be made accessible to the public in such a

manner as the Minister may determine.

The Office shall be accountable to the Minister for the

discharge of its duties.

PART III

Proceedings

(1) An eligible applicant who may submit an eligible

application in accordance with this Act, shall first submit a complaint

with the relevant lending institution.

(2) The lending institution shall investigate the complaint made

by the eligible applicant in accordance with and subject to the time-

limits established in its charter.

(3) The lending institution shall communicate its decision on a

durable medium to the eligible applicant within the time-limits

established in its charter.

(4) Where following its internal review process the lending

institution confirms its decision to

(a) refuse to grant a credit facility to the eligible

applicant;

(b)

withdraw or reduce an existing credit facility; or

(c)

refuse an application requesting the restructuring of

an existing credit facility

(i) it shall, to the extent permitted by law, specify

its reasons for the refusal, withdrawal or reduction; and

(ii) it shall, include clear information about the

eligible applicant’s right to refer a complaint to the Office,

together with the contact details of the Office, and the

applicable time-limits for doing so in accordance with

article 9.

(5) The provisions of this article shall not apply to lending

institutions which are not required to have in place a complaints

management policy and a complaints management function in terms of

law.

(1) An eligible applicant who is entitled to submit an Review by

eligible application in accordance with this Act may, within ninety credit reviewer.

(90) days after having exhausted all remedies available to him in the

charter of the relevant lending institution, submit an application in

writing to the credit reviewer, which application shall

(a) identify the lending institution against which the

eligible application is made;

(b) identify the reasons for submission of the eligible

application; and

(c) request the credit reviewer to establish, to the extent

permitted by law, whether the decision communicated by the

lending institution in respect of the eligible application submitted

by the eligible applicant was in accordance with the credit

policies of the lending institution and in the case of a failure by

the lending institution to make a final decision within the time

period provided by the lending institution in accordance with its

charter following a request for a credit facility by the eligible

applicant, to establish the reason for such a delay in making such

a decision, and whether such delay was justified.

(2) Upon receipt of an eligible application the credit reviewer

shall determine whether the eligible application falls within his

competence.

(3) Where the credit reviewer determines that the eligible

application does not fall within his competence, the credit reviewer

shall promptly inform the eligible applicant in writing and provide the

decision and the reasons for such decision, either electronically or by

recorded delivery through the post or courier service.

(4) The application submitted shall be in the form and language

determined by the Office a nd shall be accompanied by the

documentation requested therein, including all documentation

provided by the eligible applicant to the lending institution and the

feedback received from the lending institution, to the extent that these

are available.

(5) On submitting a complaint with the Office the eligible applicant

may be required to pay a fee as the Minister, in consultation with the

Minister responsible for finance, may prescribe, from time to time, by

regulations made under this Act.

(6) The credit reviewer shall issue an order for the termination of

the proceedings if

(a) before the credit reviewer shall have reached a

decision, the eligible applicant shall notify the credit reviewer in

writing either electronically or by recorded delivery through the

post or courier service of the withdrawal of his application; or

(b) if the continuation of the proceedings initiated by the

eligible applicant become unnecessary or impossible for any

reason.

(7) Where the credit reviewer determines that an eligible

application falls within his competence, he shall transmit a copy of the

eligible application, including supporting documents as applicable, to

the lending institution electronically or by recorded delivery through

the post or courier service.

(8) The lending institution shall, within twenty days (20) from

service of the eligible application to the said lending institution by the

credit reviewer, or any other period determined by the credit reviewer

and communicated by him to the lending institution through a durable

medium, submit a reply to the credit reviewer.

(1) An eligible application shall, as far as possible, be

primarily dealt with by mediation.

(2) Participation in mediation by the eligible applicant and the

lending institution shall be voluntary, and any party may withdraw

from participation at any time.

(3) The mediation proceedings shall be carried out by officers

appointed by the Office, whose function shall be to act as mediators

between the eligible applicant and the lending institution

Provided that the mediator may, on forming the view that a

mediation attempt is not likely to succeed, abandon such attempt to

resolve the complaint by mediation. The mediator shall communicate

such decision to the eligible applicant and the lending institution.

(4) Subject to the provisions of this Act and to any regulations

made under article 19, the mediator may regulate his own procedure.

(5) The mediation proceedings shall proceed in private and any

resolution of a complaint as a result of mediation shall not have the

resolution thereof published in any format.

(6) No appeal shall lie from anything done by an officer acting in

his capacity as mediator.

Where the mediation proceedings under article 10 prove to be Where

unsuccessful, or where either the eligible applicant or the lending voluntary

mediation is

institution refuse to undergo voluntary mediation, the credit reviewer unsuccessful.

shall proceed to review the complaint raised by the eligible applicant

in its application.

(1) The credit reviewer has discretion to determine whether, Proceedings

for the purposes of the issuance of the recommendation, any additional before

reviewer.

oral and, or written submissions are required, in addition to the written

submissions stipulated in article 9. Where the credit reviewer

determines that any additional oral and, or written submissions are

required, he shall provide the parties with an opportunity to make such

additional oral and, or written submissions.

(2) The eligible applicant and the lending institution shall have

the right to be represented and assisted by a person or persons of their

trust. Neither party shall be required to be represented or assisted for

any oral hearings which are required by the credit reviewer. If only one

(1) party is represented or assisted, the credit reviewer shall ensure that

the hearing remains fair for both parties.

(3) The credit reviewer may request the production of

information or documentation from either of the parties or from a third

party, as the case may be, which he considers necessary or relevant for

the determination of the complaint raised by the eligible applicant,

which information or documentation is to be provided before the

expiry of such reasonable period as the credit reviewer shall specify,

and in the case of information, in such manner or form as may be

specified by the credit reviewer

Provided that any documentation requested by the credit

reviewer from a lending institution and which relates to the said

lending institution’s internal policies or strategies or any other

document which, at the request of the lending institution shall be

deemed by the credit reviewer as containing sensitive information in

relation to the lending institution, shall be made available by the

lending institution to the credit reviewer only, to the exclusion of the

eligible applicant or any other third party.

(4) Any personal data processed by the Office shall fully comply

with the provisions of Regulation (EU) 2016/679 and the Data

Protection Act, including any regulations made thereunder and the

fundamental rights and freedoms of the data subjects.

(5) When the Office acts in its capacity of a controller within the

meaning of Article 4(7) of Regulation (EU) 2016/679 it shall perform

the relevant data processing operations which are strictly limited to the

extent necessary and proportionate to enable the Office to exercise its

functions under article 4(1).

(6) The language of the proceedings before the credit reviewer

shall be either Maltese or English as the credit reviewer may determine

in accordance with the particular circumstances of each case, in

agreement with the parties.

(7) Subject to the provisions of this Act and of any regulations

made thereunder, the credit reviewer shall regulate the proceedings as

he deems appropriate.

Proceedings undertaken before the credit reviewer shall be

conducted in private.

The findings and conclusions reached by the credit reviewer

following the submission of an eligible application in terms of this Act

shall take the form of a recommendation which shall not be binding on

the parties thereto.

(1)

The recommendation issued by the credit reviewer

recommendation.

shall

(a) support the lending institutions’ decision complained

of by the eligible applicant;

(b)

recommend that a credit facility should be granted;

(c) recommend that an existing credit facility ought not

be withdrawn or reduced;

(d) recommend that an existing credit facility is

restructured; or

(e)

make such other recommendation as the credit

reviewer deems appropriate in the circumstances.

(2) No monetary compensation may be awarded by the credit

reviewer in respect of eligible applications submitted.

(3) The findings, conclusions and recommendations reached by the

credit reviewer shall be drawn up in writing, giving the credit reviewer’s

reasons therefor and shall be read out in private on a day duly notified to

the parties.

(4) The recommendation shall be made available to the parties to

the proceedings only and shall not be made available to third parties,

except as may be required in terms of law. The recommendation shall

be treated as strictly confidential to the parties to the proceedings, who

shall not disclose, divulge, reproduce or communicate any information

or material contained in the recommendation, in whole or in part, to

any third party, except as may be required in terms of law.

(5) The lending institution may comply with the recommendation

issued by the credit reviewer or, where it elects not to comply with

such recommendation, it shall provide the credit reviewer, to the extent

allowed by law and permitted in terms of any document disclosed by

the lending institution to the credit reviewer, with its reasons for not

doing so, and in such case, the credit reviewer may elect to share those

reasons with the eligible applicant.

PART IV

Miscellaneous

Unless expressly provided otherwise in this Act, the Holders Applicability of

of Public Office and Public Entities (Responsibility) Act shall be the

Public Office

applicable in the case of any civil or criminal proceedings against the and

Entities

Office including the credit reviewer, unless it is shown that the person (Responsibility)

Act.

concerned acted in bad faith.

(1) Each lending institution shall draw up a charter which Charter.

shall be aimed at providing

(a) guidance on the process which is to be undertaken in

connection with the credit application process, including

applicable timelines;

(b) an indicative list of initial documentation and data

which is expected from the customer or potential customer in

support of his credit application, together with a reference to the

fact that further information may be required by the lending

institution in order to process an application for a credit facility;

(c) to the extent applicable, the lending institutions’

requirements regarding security and, or collateral required in

connection with a credit facility;

(d) without prejudice to article 8(5), information on the

lending institution’s complaint handling mechanisms in relation

to internal appeals or reviews where

(i) an eligible applicant has received a formal

refusal following a request for a credit facility;

(ii) a lending institution has withdrawn or reduced

an existing credit facility;

(iii) an eligible applicant has received formal

refusal by a lending institution following a request for the

restructuring of an existing credit facility; or

(iv) the eligible applicant has not received a final

decision by a lending institution within the time period

provided by the lending institution in accordance with its

charter, following a request for a credit facility or for the

restructuring of an existing credit facility by the eligible

applicant,

regarding the manner how such internal review or appeal

process may be undertaken, together with any relevant timings;

(e) information on the remedy available in certain

instances to have a refusal by a lending institution reviewed by

the credit reviewer.

(2) Without prejudice to sub-article (1), a lending institution shall

include in its charter the time-period within which it shall be required

to inform a customer or potential customer of the timeframe within

which the lending institution shall revert with its decision following an

application made for a credit facility or an application for a

restructuring of an existing credit facility.

(3) The information established in the charter shall be made

available on the lending institutions’ website and, if so requested by a

customer or potential customer of a lending institution, on a durable

medium, free of charge. It shall be the duty of the lending institution to

keep such information updated at all times.

(4) In cases where a charter is not drawn up and made publicly

available by the lending institution in accordance with the provisions

of this Act, the Charter established in the Schedule shall apply.

(5) The Malta Financial Services Authority shall be responsible

for the supervision and enforcement of the requirements relating to the

charter as established in this article. For this purpose, the powers

assigned to the Malta Financial Services Authority in accordance with

the Malta Financial Services Authority Act and the Banking Act shall Cap.

330. apply mutatis mutandis.

(1) The credit reviewer may appoint such officers and Power to

consultants to assist in the fulfilment of its functions. The engagement procure

resources.

of such officers and consultants shall be at such appropriate terms and

conditions as commensurate with their appointment and professional

standing and experience. Such appointment may be on full-time or

part-time basis, or related to specific eligible applications that require

special skills for proper analysis.

(2)

Any person appointed in accordance with sub-article (1) shall

(a) be independent and impartial of the parties to the

application or applications in respect of which they shall have

been engaged;

(b) carry out their duties free from any interference from

any person except for the direction given by the credit reviewer;

and

(c) maintain ongoing confidentiality regarding any

information acquired during the course of their duties, even after

their engagement has ended.

(3) The Office shall have the power to conduct surveys on the

state of accessibility of finance by eligible applicants and to request

information from lending institutions on the number of credit

applications received by them by eligible applicants, including

(a)

the value of credit requested;

(b) the number of credit applications which have been

approved and declined by lending institutions; and

(c)

the reasons for refusal, to the extent permitted by law.

The Minister may, in consultation with the Office, and where Power to make

applicable with the Malta Financial Services Authority, make regulations.

regulations for the better implementation of the provisions of this Act

and, without prejudice to the generality of the aforesaid, by such

regulations, in particular

(a) establish the charges payable in accordance with this

Act, in consultation with the Minister responsible for finance;

(b) establish the procedure to be followed by the officer

in his capacity as mediator in the context of any mediation

proceedings conducted in terms of this Act;

(c) prescribe the procedure to be followed in the

formulation of a report by the officer in the context of any

mediation proceedings conducted in terms of this Act;

(d) regulate the drawing up, approval, publication and

distribution in Malta of the charter to be published by lending

institutions in terms of this Act;

(e)

amend, substitute or revoke Schedules.

(1) For the proper discharge of their respective duties, the

Office and the Malta Financial Services Authority shall cooperate and

exchange information about the efficient complaint handling of

lending institutions and issues that are likely to have wider regulatory

implications arising from eligible applications, including issues that

appear to affect multiple applicants of one (1) or more lending

institutions.

(2) The Office may enter into a memorandum of understanding

with the Malta Financial Services Authority establishing the terms

under which they agree to comply with sub-article (1). Such agreement

shall be publicly available electronically or as requested.

(3) Any information divulged or exchanged pursuant to this

article shall be treated as strictly confidential by the respective parties,

and its disclosure may only be permitted if prior consent of the

respective parties is obtained in writing.

This Act shall regulate any decision by lending institutions

which relates to

(a) an application for a credit facility made by an eligible

applicant, and which is submitted to a lending institution

following the date of the coming into force of this Act;

(b) a withdrawal or reduction of an existing credit

facility, which withdrawal or reduction is effected following the

date of the coming into force of this Act; and

(c) a refusal of an application requesting a restructuring

of an existing credit facility, which application is submitted to

the lending institution following the date of the coming into

force of this Act.

PART V

Amendments to the Arbiter for Financial Services Act

This Part amends the Arbiter for Financial Services Act and Amendments to

shall be read and construed as one with the Arbiter for Financial the

Financial

Services Act, hereinafter in this Part referred to as the "principal Act". Services

Sub-article (2) of article 21 of the principal Act shall be Amendment of

article 21 of the

amended as follows

principal Act.

(a) paragraph (c) thereof shall be substituted by the

following new paragraph

"(c) the complaint is, in the opinion of the Arbiter,

frivolous or vexatious; or";

(b) immediately after paragraph (c) thereof, as

substituted, there shall be added the following new paragraph

"(d) the complaint is submitted by an eligible

applicant and relates to an eligible application as

Act No. VI of

defined in the Credit Review Office Act.".

2026. SCHEDULE

(article 17)

Charter

1. Customers or potential customers who intend to apply for a Information

credit facility are to submit an application in writing in the form and Required.

substance determined by the lending institution.

2. Following receipt of the application referred to in item 1, the

lending institution shall review the application and revert with a list of

documentation and information required to process the application, by

not later than seven (7) days from receipt of the said application.

3. (1) The type and level of the information required shall vary

on a case-by-case basis depending on the nature of the customer or

potential customer’s activity and the specific conditions associated

with each credit application. The lending institution shall generally

require the following information

(a) identification documents where the applicant is a

natural person;

(b)

statements of income where the applicant is a natural

person;

(c)

up-to-date financial and management accounts;

(d)

a comprehensive and detailed business or activity

plan;

(e) information on the customer’s or potential

customer’s experience, understanding of the market and

understanding of risks and of opportunities which may arise in

the short and medium term in connection with the customer’s or

potential customer’s business;

(f) information on the

customer’s

or

potential

customer’s credit history; and

(g) information with respect to the customer’s or

potential customer’s lending needs, including the amount which

the customer or potential customer intends to borrow and the

purpose for which the funds are being requested.

(2) Any personal data processed by the lending institution shall

fully comply with the provisions of Regulation (EU) 2016/679 and the

Data Protection Act, including the regulations made thereunder, and

the fundamental rights and freedoms of the data subjects.

4. The lending institution may require collateral from the

customer or potential customer for the purposes of securing the credit

facility being requested or in connection with any request to

restructure an existing credit facility. The specific collateral

requirements shall be considered by the lending institution in the

course of assessing the application submitted by the customer or

potential customer and shall be communicated by the lending

institution in the notice of confirmation.

5. Where an existing customer requests the restructuring of an

existing facility with the lending institution, such request is to clearly

explain why such restructuring is necessary and whether the customer

is experiencing any difficulty in keeping up with its existing

commitments and, or repayments.

6. The lending institution shall be required to acknowledge

receipt of the application and accompanying documentation within

seven (7) days of receipt of a completed application.

7. The lending institution shall notify the customer or potential

customer of the outcome of its assessment in writing. This notice shall

be communicated by the lending institution by not later than sixty (60)

days from the date of submission of a complete application, duly

supported by all documents and information requested by the lending

institution, provided that a lending institution shall, at least one (1)

week prior to the expiry of the said period, inform the customer or

potential customer that the lending institution requires an additional

timeframe, to be indicated therein, to revert with its assessment.

8. The lending institution shall use the information provided by Assessment.

the applicant to carry out an assessment of the application. In its

assessment, the lending institution shall adopt a reasonable but

commercial approach, proportionate to the level of credit being

requested, the term of the facility and the overall risk profile of the

applicant.

9. Where an application is approved, the notice of confirmation

shall be communicated on a durable medium and shall include all

applicable terms and conditions associated with the facility, including

all fees or charges.

10. In the case that an application is declined or partially

declined, the lending institution shall notify the customer or potential

customer on a durable medium, whilst clearly providing the reasons on

the basis of which the lending institution is unable to accommodate the

request, except where to do so would result in a breach of any anti-

money laundering and combating the funding of terrorism legislation,

any implementing procedures, guidelines and any international

agreements binding on the lending institutions, and informing the

customer or potential customer about the lending institution’s

complaints procedure, to the extent applicable.

11. In the case that

Internal review

process.

(a) a customer or potential customer has received formal

refusal following a request for a credit facility;

(b) a lending institution has withdrawn or reduced an

existing credit facility;

(c) a customer or potential customer has received formal

refusal by a lending institution following a request for a

restructuring of an existing credit facility; or

(d) a customer or potential customer has not received a

final decision by a lending institution within the time period

provided by the lending institution in accordance with item 7

following a request for a credit facility or for the restructuring of

an existing credit facility by the customer or potential customer,

the customer or potential customer may file a complaint with the

lending institution requesting that its decision be reviewed.

12. Complaints shall be submitted in writing to the lending

institution at its registered address, which complaint shall explain the

grounds on the basis of which the complainant wants to have the

lending institution’s decision reviewed.

13. Complaints shall be submitted within one (1) month from the

date of service of the decision, in the form and contents determined by

the lending institution. The lending institution shall acknowledge

receipt of the submission within two (2) days.

14. The complaint shall be considered by an independent official,

or a team of officials, who were not involved in the original decision

communicated by the lending institution.

15. If the assessment of the complaint requires submission of

further information from the complainant, the lending institution shall

indicate a reasonable timeframe by when such information shall be

submitted.

16. The lending institution shall review the complaint submitted

by the complainant and shall inform the complainant of the outcome of

the complaint by not later than fifteen (15) days from receipt of the

complaint and documentation requested by the lending institution. If

the investigation of the complaint is not completed within fifteen (15)

days as aforesaid, the lending institution shall inform the complainant

of such fact before the expiry of such period.

17. Items 11 to 16, both inclusive, of this charter shall not apply

to lending institutions which are not required to have in place a

complaints management policy and a complaints management function

in terms of law.

The Credit Review Office

18. A customer or potential customer may, within ninety (90)

days after having exhausted all remedies available to him in

accordance with this charter, if his application is considered to be an

eligible application in accordance with the Act, submit an application

in writing to the credit reviewer within the Credit Review Office.

19. The application shall be in the form and language determined

by the Credit Review Office and accompanied by the documentation

requested therein, including all documentation provided by the eligible

applicant to the lending institution and the feedback provided by the

lending institution, to the extent that these are available.

20. Any application submitted in accordance with item 19 shall

(a) identify the details of the lending institution against

which the application is made;

(b) identify

the

reasons

for

submission

of

the

application; and

(c) request the credit reviewer to establish, to the extent

permitted by law, whether the decision communicated by the

lending institution in respect of the application submitted by the

eligible applicant is in accordance with the credit policies of the

lending institution and in the case of failure by the lending

institution to make a final decision within the timeframe

established by the lending institution in accordance with its

charter following a request for a credit facility by the eligible

applicant, to establish the reason for such a delay in making such

decision, and whether such delay is justified.

21. The findings and conclusions of the Office shall take the form

of a recommendation which shall not be binding on the parties thereto.

Passed by the House of Representatives at Sitting No. 450 of the

25th March, 2026.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Clerk of the House of Representatives

€1.98