ARBITER FOR FINANCIAL SERVICES ACT

CHAPTER 555

ARBITER FOR FINANCIAL SERVICES ACT

To set up the Office of the Arbiter for Financial Services with power to

mediate, investigate, and adjudicate complaints filed by a customer

against a financial services provider, to set up a Board of Management

responsible for the administration of the Office of the Arbiter for Financial

Services, and to provide for other purposes connected therewith.

18th April, 2016 *

ACT XVI of 2016 , as amended by Acts XVI of 2017 , VII of 2018. and

VIII of 2020 and XVIII of 2021 and XII and XXVI of 2023, XIII of 2024 , IX

of 2025 and VI of 2026.

PART I

Preliminary

The short title of this Act is the Arbiter for Financial

Services Act.

In this Act, unless the context otherwise requires

"Arbiter" means the Arbiter for Financial Services appointed

under article 14;

"Board" means the Board of Management and Administration

established under article 3;

"competent authorities" means the Malta Financial Services

Authority, Central Bank of Malta, Malta Competition and Consumer

Affairs Authority and any other authority as the Minister may

prescribe by regulations;

"consumer association" shall have the same meaning as assigned to it

in the Consumer Affairs Act and shall include any other consumer

association that has been officially recognised in any other country;

"customer" means a natural person, including his successors in title,

a micro enterprise, consumer associations or voluntary organisations

Provided that customer shall include any person in the case of

complaints regarding suspicious fraudulent payment transactions

involving financial services providers;

"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, and allows the

unchanged reproduction of the information stored;

"eligible customer" shall include

(a) a customer who is a consumer of a financial services

provider;

(b)

a customer to whom the financial services provider has

offered to provide a financial service;

* see article 1(2) of this Act as originally enacted, and Legal Notice 132 of 2016.

(c)

a customer who has sought the provision of a financial

service from a financial services provider;

(d)

the lawful successor in title to the financial product

which is the subject of the relevant complaint;

(e)

consumer associations; and

(f)

voluntary organisations

Provided that in the case of suspicious fraudulent payment

transactions involving financial services providers, the victim of fraud

exhibiting immediate, genuine and legitimate interest shall be deemed to

be an eligible customer of any one of the financial services providers

involved in the suspicious fraudulent payment transaction and this

proviso shall be applicable with effect from 1st October 2025;

"financial services provider" means a provider of financial services

which is, or has been licensed or otherwise authorized in terms of the

Malta Financial Services Authority Act or in terms of any other

financial services law, and is related to investment services, banking,

financial institutions, credit cards, pensions, insurance, and any other

service which in the opinion of the Arbiter constitutes a financial

service, which is, or has been resident in Malta or is, or has been resident

in another EU Member State or in another EEA Member State and

which offers, or has offered its financial services in and, or from Malta.

A provider of financial services which has had its licence or other

authorisation suspended or withdrawn, but which was licensed or

otherwise authorised during the period in relation to which the occurred

facts that gave rise to a complaint by an eligible customer is made to the

Arbiter, shall be considered as falling within the definition of a financial

services provider;

"financial year" means a period of twelve months beginning on

the first day of January and ending on the thirty-first day of

December of the same year;

"micro enterprises" means an enterprise which employs fewer

than ten persons and whose annual turnover and, or annual balance

sheet total does not exceed two million euro (€2,000,000);

"Minister" means the Minister responsible for Finance;

"Office" means the Office of the Arbiter for Financial Services

established under article 10;

"Office staff member" means a person appointed under article

19(4)(c);

"parties" in relation to a complaint means the complainant, the

financial services provider against whom the complaint is made,

and any other person who in the opinion of the Arbiter should be

treated as a party to the complaint;

"substitute Arbiter" means the Arbiter appointed under article

(1) Għandu jkun hemm Bord, li jkun magħruf bħala l-Bord

tal-Immaniġġjar u l-Amministrazzjoni, li għandu jkun responsabbli

għall-immaniġġjar u l-amministrazzjoni tal-Uffiċċju tal-Arbitru

għas-Servizzi Finanzjarji.

(2) Il-Bord għandu jkun magħmul minn tliet membri, inkluż iċ-

Chairperson, li jkun maħtur mill-Ministru, membru, li jkun ukoll

maħtur mill-Ministru, u membru ieħor li jkun maħtur mill-Ministru

responsabbli għall-Affarijiet tal-Konsumatur.

(3) Il-Ministru għandu jaħtar Chairperson li jkollu għarfien

jew esperjenza ta’ materja li jirrigwardaw il-konsumatur li jkunu

relatati mal-provista tas-servizzi finanzjarji.

(4) Il-Ministru għandu jagħżel il-membri tal-Bord minn fost

persuni li jkunu jidhru lilu li jkunu kwalifikati li jkunu hekk

magħżula.

(5) Il-membri tal-Bord għandhom iwettqu l-funzjonijiet

tagħ hom t aħt dan l-At t fil -ġu di zzju ind ivi dwal i tagħ hom u

m’għandhomx ikunu soġġetti għall-ordnijiet jew kontroll ta’ xi

persuna jew awtorità oħra fil-qadi ta’ dawk il-funzjonijiet.

(1) Il-membri tal-Bord għandhom iżommu l-kariga għal

perjodu ta’ ħames snin, u membru għandu, meta jieqaf milli jkun

membru, ikun eliġibbli għal ħatra mill-ġdid.

(2) Il-membri tal-Bord ikunu intitolati għal dik ir-

rimunerazzjoni kif il-Ministru jista’ minn żmien għal żmien

jiddeċiedi.

Iċ-Chairperson u kull membru tal-Bord jista’ jitneħħa mill-

Ministru minħabba f ’inkapaċità ppruvata jekk ikompli jaqdi d-

dmirijiet tiegħu jew fuq imġiba ħażina bil-provi.

(1) Kull membru tal-Bord jista’ jirriżenja mill-kariga

tiegħu b’ittra indirizzata lill-Ministru.

(2) Il-ħatra, tmiem tal-kariga jew riżenja ta’ kull persuna bħala

membru tal-Bord, inkluż ir-raġunijiet għal dak it-tmiem jew riżenja

kif ikun japplika, għandhom jiġu ppubblikati fil-Gazzetta.

(1) Il-Bord għandu jaħtar segretarju għal dak il-perjodu u

taħt dawk il-pattijiet kif il-Bord iqis li jkun xieraq.

(2)

Għandu

jkun

id-dmir

tas-Segretarju

li

jagħmel

il-

ARBITRU GĦAS-SERVIZZI FINANZJARJI

preparazzjonijiet meħtieġa għal-laqgħat tal-Bord u li jżomm minuti

ta’ dawk il-laqgħat.

(3) Is-Segretarju għandu wkoll iwettaq kull funzjoni li tista’

tiġi delegata lilu bil-miktub mill-Bord minn żmien għal żmien.

(1)

Għandha tkun il-funzjoni tal-Bord li

(a) jagħti għajnuna f’affarijiet amministrattivi lill-Arbitru fl-

eżerċizzju tal-funzjonijiet tiegħu, meta l-Arbitru hekk

jitlob;

(b) iżomm taħt reviżjoni l-effiċjenza u l-effettività tal-

Uffiċċju u sabiex jagħti parir lill-Ministru, jew fuq it-

talba tal-Ministru jew fuq inizjattiva tiegħu, fuq kull

kwistjoni rilevanti għat-tħaddim tal-Uffiċċju;

(ċ) jassisti lill-Arbitru fuq kull kwistjoni li fuqha l-Arbitru

jfittex parir;

(d) jirrakkomanda lill-Ministru fir-rigward ta’ ħlas tal-

imposti u d-drittijiet li għandhom jitħallsu għat-twettiq

ta’ servizzi provduti mill-Uffiċċju;

(e) jagħti parir lill-Ministru fuq l-għemil ta’ regoli fir-

rigward ta’ ħlas ta’ imposti u drittijiet li għandhom

jitħallsu lill-Uffiċċju minn kategoriji differenti ta’

persuni, l-ammonti ta’ imposti u drittijiet, il-perjodi li

fihom imposti u drittijiet speċifikati għandhom

jitħallsu, u pieni li jkunu pagabbli minn persuna li

tonqos milli jew li tħallas fil-ħin jew li ma tħallasx l-

ammont kollu dovut;

(f)

jinżamm rekord ta’ persuni li huma responsabbli li

jħallsu imposta jew dritt speċifikat, u kull pagament

riċevut mill-Uffiċċju;

(g) jinġabru u jiġu rkuprati l-imposti u d-drittijiet dovuti;

(h) jagħti parir lill-Ministru fuq l-għemil ta’ regoli, jew

fuq inizjattiva tiegħu jew fuq it-talba tal-Arbitru,

sabiex jiġi deċiż il-mod u r-rekwiżiti, inkluż kull

tariffa pagabbli, għar-reġistrazzjoni ta’ kull dokument

taħt dan l-Att;

(i)

jiddeċiedi dwar il-metodi tal-kontabilità li għandhom

jiġu segwiti mill-Uffiċċju meta jinżammu rekords tal-

kontabilità;

(j)

jiddeċiedi dwar il-forma tar-rapport annwali li għandu

jiġi mfassal mill-Bord fuq bażi annwali;

(k) jiddeċiedi dwar il-forma tar-rapport bl-estimi ta’ dħul

u nfiq li għandu jiġi mfassal mill-Bord fuq bażi

annwali;

(l)

jiddeċiedi dwar il-forma tar-rapport li għandu

x’jaqsam ma’ pjan strateġiku li għandu jiġi mfassal

mill-Bord fuq bażi annwali;

(m) jaqdi dawk il-funzjonijiet jew attivitajiet kif huma

assenjati lilu minn dan l-Att;

(n) jiddeċiedi dwar kull servizz li għandu jitqies bħala

servizz finanzjarju addizzjonali li jista’ jkun soġġett

għal konsiderazzjoni mill-Arbitru; u

(o) jaqdi kull funzjoni oħra supplimentari jew anċillari

għal dak imsemmi hawn qabel.

(2) Fil-qadi tal-funzjoni tiegħu taħt is-subartikolu (1)(f), il-

Bord jista’ jibda proċeduri quddiem il-Qorti Ċivili sabiex jiġbor

kull dejn, ammont ta’ imposta jew dritt dovut lill-Uffiċċju.

(3) Ir-rappreżentanza legali tal-Bord għandha tiġi vestita fiċ-

Chairperson

Iżda l-Bord jista’ jinnomina wieħed jew aktar mill-membri

l-oħra tal-Bord li jidhru f ’isem u għan-nom tal-Bord f ’kull

proċediment ġudizzjarju u biex jiffirmaw għal u għan-nom tiegħu,

kull kitba jew dokument ieħor ikun xi jkun.

(4) M’għandhiex tkun il-funzjoni tal-Bord li jintervjeni bl-ebda

mod fuq kif l-Arbitru jittratta l-merti ta’ ilment partikolari.

(1) Il-Bord għandu jkun responsabbli lejn il-Ministru

għall-qadi tad-dmirijiet tiegħu.

(2)

(a) Fi żmien sitt xhur minnufih qabel il-bidu ta’ kull sena

finanzjarja, il-Bord, b’konsultazzjoni mal-Arbitru,

għandu jipprepara, fil-forma stabbilità mill-Bord,

dikjarazzjoni bl-estimi ta’ dħul u nfiq li jkollhom

x’jaqsmu mal-Uffiċċju għas-sena finanzjarja li jkun

imiss. Dawk l-estimi għandhom jiġu approvati mill-

Bord.

(b) Id-dikjarazzjoni għandha tispeċifika

(i)

l-ammonti mistennija li jinġabru u rkuprati

matul is-sena finanzjarja kkonċernata mill-

impożizzjoni ta’ imposti u tariffi;

(ii) kull sors ieħor li minnu huma mistennija li

jinkisbu fondi matul dik is-sena sabiex jiġu

ffinanzjati l-attivitajiet tal-Uffiċċju u l-ammonti

mistennija li jinġabru minn dawk is-sorsi; u

(iii) l-attivitajiet li l-Uffiċċju jipproponi li jwettaq

matul dik is-sena;

(ċ) Kopja tal-estimi għandha tintbagħat minnufih lill-

Ministru.

(d) Il-Ministru għandu, mal-ewwel opportunità li jkollu u

mhux iżjed tard minn sitt ġimgħat wara li jkun irċieva

kopja tal-estimi mill-Bord, japprova l-istess bl-emendi

jew mingħajr emendi.

(e) Dawk l-estimi approvati għandhom jitqiegħdu fuq il-

Mejda tal-Kamra tad-Deputati.

(3)

(a) Fi żmien sitt (6) xhur qabel il-bidu ta’ sena finanzjarja u

mhux aktar tard mit-tmiem ta’ kull intervall sussegwenti

ta’ tliet (3) snin wara l-anniversarju ta’ tali ġurnata, il-

Bord b’konsultazzjoni mal-Arbitru għandu jħejji u

japprova pjan strateġiku fil-forma ta’ rapport għall-

perjodu ta’ tliet (3) snin li jmiss, li jibda minnufih mis-

ARBITRU GĦAS-SERVIZZI FINANZJARJI

sena finanzjarja sussegwenti għas-sena li fiha jiġi

approvat il-pjan strateġiku.

(b) Ir-rapport għandu jispeċifika

(i)

l-għanijiet tal-attivitajiet tal-Uffiċċju għas-sena

finanzjarja kkonċernata;

(ii) ix-xorta u l-iskop tal-attivitajiet li għandhom

jitwettqu;

(iii) il-miri u l-kriterji sabiex tiġi evalwata l-

prestazzjoni tal-Uffiċċju; u

(iv) kif ser ikunu utilizzati r-riżorsi tal-Uffiċċju.

(ċ) Kopja tal-pjan strateġiku għandha tintbagħat minnufih

lill-Ministru.

(d) Kopja ta’ dak ir-rapport għandha titqiegħed fuq il-

Mejda tal-Kamra tad-Deputati u għandha tkun

disponibbli għall-pubbliku.

(4) Il-kontenut u materji oħra relatati mal-estimi kif ukoll il-

pjan strateġiku msemmija fis-subartikoli (2) u (3) jistgħu jiġu

preskritti b’regolamenti magħmula taħt dan l-Att.

(5) Iċ-Chairperson tal-Bord għandu jipprovdi lill-Ministru

dawk ir-rapporti li jkollhom x’jaqsmu mal-attivitajiet tal-Bord u

tal-Uffiċċju kif il-Ministru jista’ jitlob minn żmien għal żmien

Iżda r-rapporti m’għandhomx jiżvelaw dettalji jew

kummenti dwar kull ilment li ma jkunx għadu ġie deċiż mill-

Arbitru.

TAQSIMA III

L-Uffiċċju tal-Arbitru

(1) Għandu jitwaqqaf Uffiċċju tal-Arbitru għas-Servizzi

Finanzjarji.

(2) L-Uffiċċju għandu jkun kompost mill-Bord, l-Arbitru u l-

Arbitru sostitut, jekk ikun hemm, u minn dawk l-uffiċjali u membri

tal-persunal maħtura jew impjegati mill-Uffiċċju.

(1) Mingħajr preġudizzju għall-funzjonijiet tal-Arbitru taħt

dan l-Att, għandha tkun il-funzjoni tal-Uffiċċju li

(a) jittratta ilmenti li jkunu tressqu minn klijenti eliġibbli;

(b) javża lill-pubbliku permezz ta’ mezzi elettroniċi u,

meta jkun possibbli, b’linji gwida bil-miktub dwar il-

funzjonijiet mwettqa mill-Uffiċċju, id-dettalji ta’

kuntatt tal-Uffiċċju, il-proċedura segwita mill-Uffiċċju

fir-rigward ta’ ilmenti, u informazzjoni oħra li jkollha

x’taqsam mal-Uffiċċju bil-għan li tinforma lill-

pubbliku fuq is-servizzi offruti mill-Uffiċċju;

(ċ) jipprovdi lill-partijiet fi proċedimenti l-informazzjoni

msemmija fis-subartikolu (2) b’mezz durabbli;

(d) jipprovdi l-mezzi sabiex jippermetti lil klijent

jippreżenta

l-ilment

b’mezz

elettroniku

jew

b’dokumentazzjoni mibgħuta rreġistrata permezz tas-

servizz tal-posta jew kurrier;

(e) jipprovdi l-mezzi sabiex jippermetti l-iskambju ta’

informazzjoni bejn il-partijiet f’tilwima b’mezzi

elettroniċi jew bil-konsenja rreġistrata permezz tas-

servizz tal-posta jew kurrier;

(f) jiżgura li l-ipproċessar ta’ data personali tkun

konformi mar-regoli tal-protezzjoni ta’ data personali

kif stabbilit taħt l-Att dwar il-Protezzjoni u l-

Privatezza tad-Data;

(g) jistabbilixxi regoli u linji gwida fir-rigward tal-

implimentazzjoni tar-regolamenti magħmula skont l-

artikolu 33; u

(h) jaqdi dawk il-funzjonijiet l-oħra kif huma assenjati lilu

taħt dan l-Att jew kull liġi oħra.

(2) L-Uffiċċju jista’ jiddelega bil-miktub lil kull persuna

impjegata mal-Uffiċċju, kull funzjoni tiegħu taħt dan l-Att, ħlief

għal din is-setgħa ta’ delegazzjoni.

(1) L-Uffiċċju għandu jkun responsabbli lejn il-Ministru

għall-qadi tad-dmirijiet tiegħu.

(2)

(a) L-Uffiċċju għandu jiżgura li jinżammu rekords ta’

kontabilità xierqa, fil-forma stabbilita mill-Bord, li

jkunu jirriflettu t-transazzjonijiet finanzjarji ta’ jew li

jkollhom x’jaqsmu mal-Uffiċċju.

(b) Il-kontijiet tal-Uffiċċju għandhom jiġu approvati mill-

Bord.

(ċ) Rekords tal-kontijiet u ta’ kull transazzjoni għandhom

jinżammu għal perjodu ta’ għaxar snin.

(d) Il-kontijiet u transazzjonijiet tal-Uffiċċju għandhom

jiġu verifikati mill-Awditur Ġenerali, u l-Uffiċċju

għandu jkun soġġett għall-Att dwar il-Ġestjoni tal-

Finanzi Pubbliċi.

(3) Il-kontenut u materjal ieħor li jkollhom x’jaqsmu mal-

kontijiet imsemmija taħt is-subartikolu (2) jistgħu jiġu preskritti

b’regolamenti magħmulin taħt dan l-Att.

Il-fondi tal-Uffiċċju għandhom jikkonsistu

(a) fil-fondi provduti lill-Uffiċċju wara estimi preparati

mill-Bord u approvati mill-Ministru skont l-artikolu

9(2)(d);

(b) fil-fondi li jakkumulaw lill-Uffiċċju minn kull sors

ieħor.

(1) Il-Ministru għandu jaħtar Arbitru minn fost persuni li

jkun jidher lilu li jkunu kwalifikati li jaqdu din il-funzjoni.

(2) Persuna għandha tkun eliġibbli għall-ħatra ta’ Arbitru jekk

ikollha l-kompetenza meħtieġa f ’materji li jirrigwardaw il-

konsumatur fir-rigward ta’ servizzi finanzjarji, inkluż għarfien

ġenerali tal-liġi.

(3)

Persuna ma tkunx eliġibbli għall-ħatra bħala Arbitru jekk hi

tkun

(a) Membru tal-Kamra tad-Deputati jew Membru tal-

Parlament Ewropew jew Sindku jew Kunsillier fuq

Kunsill Lokali; jew

(b) uffiċjal pubbliku; jew

(ċ) membru jew impjegat ma’ xi aġenzija, entità tal-Gvern

jew awtorità lokali; jew

(d) persuna misjuba ħatja ta’ xi reat li jaffettwa l-fiduċja

tal-pubbliku, jew ta’ reat, ħlief għal reat involontarju,

li jkun punibbli bi priġunerija għal żmien ta’ mill-

inqas sena.

(4) L-Arbitru m’għandu jkollu l-ebda kariga li ma tkunx

kompatibbli mal-qadi korrett tad-dmirijiet uffiċjali tiegħu, bl-

imparzjalità u l-indipendenza tiegħu, jew bil-fiduċja tal-pubbliku

fih.

(5) L-Arbitru għandu jiddikjara li, u jfittex l-approvazzjoni tal-

Ministru għal, kull kariga, trusts jew sħubijiet li l-Arbitru jqis li ma

jaffettwawx l-imparzjalità u l-indipendenza u l-fiduċja tal-pubbliku

fil-qadi ta’ dmirijietu taħt dan l-Att.

(6) Meta jinħatar, l-Arbitru għandu jieħu dan il-ġurament tal-

kariga

"Jien ................................. naħlef / niddikjara

solennement li ser inwettaq il-funzjonijiet ta’ Arbitru

onestament, imparzjalment, bid-diliġenza dovuta, u

mingħajr biża’ jew favur skont il-liġi.".

(1) L-Arbitru għandu jżomm il-kariga għal perjodu ta’ seba’

snin li warajh m’għandux ikun eliġibbli li jerġa’ jinħatar.

(2) L-Arbitru jista’ jirriżenja mill-kariga b’ittra indirizzata lill-

Ministru.

(3) Il-ħatra, it-tmiem tal-kariga jew ir-riżenja tal-Arbitru,

inkluż ir-raġunijiet għal dak it-tmiem jew riżenja kif ikun japplika,

għandhom jiġu ppubblikati fil-Gazzetta.

"voluntary organisation" shall have the same meaning as assigned to

it in the Voluntary Organisations Act and shall include any other

voluntary organisation that has been officially recognised in any other

country.

PART II

The Board of Management and Administration

3. (1) There shall be established a Board, to be known as the

Board of Management and Administration, which shall be

responsible for the management and administration of the Office of

the Arbiter for Financial Services.

(2) The Board shall be composed of three members, including

the Chairperson, who shall be appointed by the Minister, a member,

who shall also be appointed by the Minister, and another member

who shall be appointed by the Minister responsible for Consumer

Affairs.

(3) The Minister shall appoint a Chairperson who has

knowledge or experience of consumer issues relating to the

provision of financial services.

(4) The Minister shall select the members of the Board from

among persons who appear to him to be qualified to be so selected.

(5) The members of the Board shall exercise their functions

under this Act in their individual judgement and they shall not be

subject to the direction or control of any other person or authority

in the exercise of such functions.

4. (1) The members of the Board shall hold office for a period

of up to five years, and a member shall, on ceasing to be a member,

be eligible for reappointment.

(2) The members of the Board shall be entitled to such

remuneration as the Minister may from time to time determine.

5. The Chairperson and any member of the Board may be

removed by the Minister on the ground of proved inability to

continue to perform his duties or on proved misbehaviour.

6. (1) Any member of the Board may resign from his office

by letter addressed to the Minister.

(2) The appointment, termination of office or resignation of

any person as a member of the Board, including the reasons for

such termination or resignation as applicable, shall be published in

the Gazette.

7. (1) The Board shall appoint a secretary for such period and

under such terms as the Board shall deem appropriate.

(2) It shall be the duty of the Secretary to make the necessary

preparations for the meetings of the Board and to keep minutes of

these meetings.

(3) The Secretary shall also perform any function that may be

delegated to him in writing by the Board from time to time.

8. (1)

It shall be the function of the Board

(a) to provide support in administrative matters to the

Arbiter in the exercise of his functions when the

Arbiter so requests;

ARBITER FOR FINANCIAL SERVICES

(b) to keep under review the efficiency and effectiveness

of the Office and to advise the Minister, either on the

Minister’s request or on its own initiative, on any

matter relevant to the operation of the Office;

(c) to assist the Arbiter on any matter on which the Arbiter

seeks advice;

(d) to recommend to the Minister the levies and charges to

be payable for the performance of services provided by

the Office;

(e) to advise the Minister on the making of rules regarding

the payment of levies and charges to be paid by

different categories of persons to the Office, the

amounts of those levies and charges, the periods

within which specified levies or charges are to be paid,

and penalties that are payable by a person who fails to

pay on time or pay in full the amount due;

(f)

to keep a record of the persons who are liable to pay a

specified levy or charge, and the returns actually

received by the Office;

(g) to collect and recover the levies and charges due;

(h) to advise the Minister on the making of rules, either on

its own initiative or at the request of the Arbiter, to

determine the manner and requirements, including any

fees payable therefor, for registration of any document

under this Act;

(i)

to determine accounting policies which are to be

followed by the Office when keeping accounting

records;

(j)

to determine the form of the annual report to be drawn

by the Arbiter on an annual basis;

(k) to determine the form of the report with estimates of

income and expenditure to be drawn by the Board on

an annual basis;

(l)

to determine the form of the report relating to the

strategic plan to be drawn by the Board on an annual

basis;

(m) to perform such functions or activities as are assigned

to it by this Act;

(n) to determine any service which shall be deemed as an

additional financial service that may be subject to

consideration by the Arbiter; and

(o) to perform any other function supplementary or

ancillary to the above.

(2) In the discharge of its function under sub-article (1)(f), the

Board may bring proceedings before the Civil Court to recover as a

debt an amount of levy or charge due to the Office.

(3) The legal representation of the Board shall vest in the

Chairperson

Provided that the Board may designate any one or more of

the other members of the Board to appear in the name and on behalf

of the Board in any judicial proceedings and to sign for and on its

behalf any other act, instrument or other document whatsoever.

(4) It shall not be the function of the Board to intervene in any

way on the manner how the Arbiter deals with the merits of a

particular complaint.

9. (1) The Board shall be accountable to the Minister for the

discharge of its duties.

(2)

(a) Within a period of six months immediately preceding

the beginning of each financial year, the Board, in

consultation with the Arbiter, shall prepare, in the form

established by the Board, a statement with estimates of

income and expenditure relating to the Office for the

forthcoming financial year. Such estimates shall be

approved by the Board.

(b) The statement shall specify

(i) the amounts expected to be collected and

recovered during the financial year concerned

from the imposition of levies and fees;

(ii) any other sources from which funds are expected

to be obtained during that year to finance the

Office’s activities and the amounts expected to

be raised from those sources; and

(iii) the activities which the Office proposes to

undertake during that year;

(c) A copy of the estimates shall be sent forthwith to the

Minister.

(d) The Minister shall, at the earliest opportunity and not

later than six weeks after he has received a copy of the

estimates from the Board, approve the same with or

without amendments.

(e) Such estimates are to be laid on the Table of the House

of Representatives.

(3)

(a) Within six (6) months prior to the start of a financial year

and not later than the end of each subsequent three (3)

year interval following the anniversary of such day, the

Board in consultation with the Arbiter shall prepare and

approve a strategic plan in the form of a report for the

upcoming three (3) year period, starting immediately

from the financial year subsequent to the year in which

the strategic plan is approved.

(b) The report shall specify

(i)

the objectives of the activities of the Office for

the financial year concerned;

(ii) the nature and scope of the activities to be

undertaken;

(iii) the targets and criteria for assessing the

ARBITER FOR FINANCIAL SERVICES

performance of the Office; and

(iv)

the uses for which it is proposed to apply the

Office’s resources.

(c) A copy of the strategic plan shall be sent forthwith to

the Minister.

(d) A copy of such report shall be laid on the Table of the

House of Representatives and shall be made available

to the public.

(4) The content and other matters relating to the estimates and

strategic plan mentioned in sub-articles (2) and (3) may be

prescribed by regulations made under this Act.

(5) The Chairperson of the Board shall provide the Minister

with such reports relating to the activities of the Board and the

Office as the Minister may require from time to time

Provided that the reports shall not disclose particulars or

comments on any complaint that has not been determined by the

Arbiter.

PART III

The Office of the Arbiter

10. (1) There shall be established an Office of the Arbiter for

Financial Services.

(2) The Office shall consist of the Board, the Arbiter and the

substitute Arbiter, if any, and of such officers and staff members

appointed or employed with the Office.

11. (1) Without prejudice to the functions of the Arbiter under this

Act, it shall be the function of the Office

(a) to deal with complaints filed by eligible customers;

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

where possible, by written guidelines on the functions

carried out by the Office, the contact details of the

Office, the procedure followed by the Office in

relation to complaints, and other information

concerning the Office aimed at informing the public on

the services offered by the Office;

(c) to provide the parties to proceedings with the

information referred to in sub-article (2) on a durable

medium;

(d) to provide the means to enable the customer to submit

a complaint electronically or by recorded delivery

through the post or courier service;

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

information between the parties to a dispute via

electronic means or by recorded delivery through the

post or courier service;

(f)

to ensure that the processing of personal data complies

with the rules on the protection of personal data as

established under the Data Protection Act;

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

implementation of the regulations made in terms of

article 33; and

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

under this Act or any other law.

(2) The Office may delegate in writing to any person engaged

with the Office, any of its functions under this Act, except this

power of delegation.

12. (1) The Office shall be accountable to the Minister for the

discharge of its duties.

(2)

(a) The Office shall ensure that proper accounting records,

in the form established by the Board, are kept which

reflect the financial transactions of or relating to the

Office.

(b) The accounts of the Office shall be approved by the

Board.

(c)

Accounting records shall be retained for a period of

ten years.

(d) The accounts of the Office shall be audited by the

Auditor General, and the Office shall be subject to the

Public Finance Management Act.

(3) The content and other matter relating to the accounts

mentioned under sub-article (2) may be prescribed by regulations

made under this Act.

13. The funds of the Office shall consist of

(a) the funds provided to the Office following estimates

prepared by the Board and approved by the Minister in

accordance with article 9(2)(d);

(b) the funds accruing to the Office from any other source.

14. (1) The Minister shall appoint an Arbiter from among

persons who appear to him to be qualified and suitable to be so

appointed.

(2) A person shall be eligible for appointment as an Arbiter if

he possesses the necessary expertise in consumer related issues in

respect of financial services, including a general understanding of

(3) A person shall not be eligible for appointment as an Arbiter

if he is

(a) a Member of the House of Representatives or a

Member of the European Parliament or a Mayor or a

Councillor on a Local Council; or

(b) a public officer; or

(c) a member or employee of an agency, government

entity or local authority; or

(d) a person convicted of any offence affecting public

trust, or of an offence, other than an involuntary

offence, which is punishable by imprisonment for a

term of at least one year.

(4) The Arbiter shall not hold any position which is

incompatible with the correct performance of his official duties,

with his impartiality and independence, or with public confidence

therein.

(5) The Arbiter shall declare to, and seek the approval of, the

Minister to any positions, trusts or memberships which the Arbiter

considers do not affect impartiality or independence and public

confidence, and which it is desired to retain during his term of

office.

(6) On appointment, an Arbiter shall take an oath of Oath of

Office in the form hereunder

"I ................................... swear/solemnly affirm that I

shall perform my duties as Arbiter honestly,

impartially, with due diligence, and without fear or

favour according to law.".

15. (1) The Arbiter shall hold office for a period of seven years

after which he shall not be eligible for re-appointment.

(2) The Arbiter may resign his office by letter addressed to the

Minister.

(3) The appointment, termination of office or resignation of the

Arbiter, including the reasons for such termination and resignation

as applicable, shall be published in the Gazette.

16. (1) The Minister may -

(a) at any time during the illness or absence of the Arbiter,

or

(b) for any other temporary purpose where the Arbiter

considers it necessary not to mediate, investigate and

adjudicate complaint/s because of circumstances due

to which he deems it appropriate to abstain,

appoint a substitute Arbiter in accordance with this article, and such

substitute Arbiter shall be paid such remuneration, calculated pro

rata on a time basis on the amount payable to the Arbiter.

(2) The power conferred by sub-article (1)(b) shall be exercised

only on a declaration signed by the Arbiter to the effect that, in his

opinion, it is necessary for the due conduct of the business of the

A r b i t e r u n d e r t h i s A c t t h a t a substitute A r b i t e r s h o u l d b e

temporarily appointed.

(3) An Arbiter appointed under this article on account of the

illness or absence of the Arbiter shall hold office until the

resumption of office of the Arbiter, and every substitute Arbiter

appointed for a temporary purpose shall hold office until he

performs the function assigned to him.

(4)

(a) A person shall not be qualified to be approved as

Arbiter under this article if he is disqualified to be

appointed as Arbiter under article 14.

(b) The provisions of article 14(4), (5) and (6) shall apply

to a person appointed under this article.

(1) A person shall be disqualified from remaining as an

Arbiter and may be removed from Office by the Minister on the

ground of proved inability to perform the functions of his office,

whether arising from inability of body or mind or on the ground of

proved misbehaviour

Provided that in taking a decision to remove any person

from the office of Arbiter under this article, the Minister shall act

in accordance with the principles of natural justice.

(2) The decision of the Minister to remove a person from the

office of Arbiter shall be subject to appeal to the Court of Appeal

by application to be filed in the said Court within ten days from the

notification of the decision to the Arbiter.

(3) The Court of Appeal shall order the service of the

application filed in terms of sub-article (2) upon the Minister who

shall have ten days within which to file a reply.

(4) An appeal filed in terms of this article shall be heard with

urgency and shall be determined by judgement within four months

from the filing of the reply or from the date when the period for the

filing of the reply shall have lapsed.

(5) The Court of Appeal may, upon a demand of the Minister or

of the Arbiter shorten the time limits provided for in this article for

the filing of the appeal and the reply.

(1) The Arbiter shall be entitled to such salary and

allowances as the Minister may by order in the Gazette establish and

such remuneration shall be a charge on the Consolidated Fund.

(2) The salary and allowances payable to an Arbiter shall not

be diminished during the continuance of the Arbiter’s appointment.

(1) It shall be the primary function of the Arbiter to deal

with complaints filed by eligible customers through the means of

mediation in accordance with article 24, and where necessary, by

investigation and adjudication.

(2) In addition to the functions under sub-article (1), it shall be

the function of the Arbiter

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

implementation of the regulations made in terms of

article 33;

(b) to carry out such other functions as may be assigned to

him under this Act or any other law.

(3) In carrying out his functions under sub-article (1), the

Arbiter shall

ARBITER FOR FINANCIAL SERVICES

(a) act independently and impartially, and shall not be

subject to the direction or control of any other person

or authority;

(b) determine and adjudge a complaint 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 and to such

an extent as he deems appropriate, to applicable and

relevant laws, rules and regulations, in particular those

governing the conduct of a service provider, including

guidelines issued by national and European Union

supervisory authorities, good industry practice and

reasonable and legitimate expectations of consumers

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;

(e) deal with any question of prescription in terms of law

Provided that the financial services provider may only raise

the plea of prescription in the first written submissions provided for

by article 22(3)(c) unless otherwise authorised by the Arbiter giving

reasons for that authorisation

Provided further that the Arbiter shall not be entitled to

raise the question of prescription of his own motion

Provided further that nothing in this Act shall be interpreted as

entitling the Arbiter to give a decision on any claim which is barred by

prescription when the investigated party shall have raised the defense of

prescription.

(4)

(a) Subject to the limitations imposed by this Act or any

other law, the Arbiter shall have all powers that are

necessary to enable him to perform his functions

properly including the power to summon witnesses, to

administer oaths and to issue such interlocutory orders,

including but not limited to orders restricting the

transfer of property and assets of a financial services

provider as he may deem necessary for the proper

performance of the functions of his office. An Arbiter

shall abstain and may be challenged in the same

circumstances as a Judge of the Superior Courts

Provided that in issuing interlocutory orders under this

paragraph, the Arbiter shall act mutatis mutandis in

accordance with the principles regulating the issuing

of precautionary warrants under the Code of

Organization and Civil Procedure.

(b)

(i)

An Arbiter may appoint one or more suitable

officers to perform specific functions assigned

to him under sub-article (1).

(ii) A person shall be suitable to be appointed as an

officer under sub-paragraph (i) if he is

knowledgeable and well versed in those areas

for which he shall be appointed.

(c) An Arbiter may, subject to availability of resources,

appoint and employ such number of office staff

members which are necessary for the proper

functioning of the Office.

(d) An Arbiter may, whenever the occasion requires and

subject to availability of resources, engage such

consultants or advisers to assist him in the fulfilment

of his functions

Provided that such consultants or advisors shall

themselves be independent and impartial of the parties

to the complaint or complaints in respect of which they

shall have been engaged.

(5)

Any person appointed under sub-article (4) shall

(a) carry out his duties free from any interference from

any person except for any direction given by the

Arbiter;

(b) act expeditiously;

(c) not divulge any information acquired by him in the

course of his duties;

(d) periodically report to the Arbiter the progress made

with regard to the complaints assigned to him and on

any other matter which falls within his competence.

(6)

(a) The appointment, engagement and employment of

persons mentioned under sub-article 4(b) to (d) shall

be made by the Arbiter, and the terms and conditions

shall be established by the Board in consultation with

the Minister.

(b) In establishing the terms and conditions, the Board

shall have regard to the Government’s policy with

respect to the remuneration of public sector employees

and any direction that the Minister may give from time

to time for the purpose of giving effect to that policy.

20.(1)(a) An Arbiter shall ensure that on a yearly basis his

Office prepares an annual report, in the form

established by the Board, specifying the activities of

the Office during that year, and shall submit the report

within six months from the end of each year to the

Board for its approval

Provided that the report shall not disclose particulars

or comments on any complaint that has not been

determined by the Arbiter.

(b) The report shall contain a summary of all complaints

made to, and decisions taken by, the Arbiter during the

preceding financial year and of the results of the

investigations into those complaints, and a review of

the trends and patterns observed in the submission of

complaints to the Arbiter. Statistical information

referring to the name of service providers against

whom res judicata decisions were given may be

provided.

(c) A copy of the annual report is to be laid on the Table of

the House of Representatives and shall be made

accessible to the public in such a manner as the Board

may determine.

(2) The content and other matters relating to the report

mentioned under sub-article (1) may be prescribed by regulations

made under this Act.

Without prejudice to article 113 of the Constitution of Malta,

the holder of the office of Arbiter for Financial Services shall be entitled

to a pension equivalent to the pension given to Members of the Judiciary

under the Members of the Judiciary (Pensions) Act

Provided that the holder of the office of Arbiter for Financial

Services shall be eligible to receive the pension referred to herein

only on reaching retirement age and on condition that the said

individual would have served a full term of office

Provided further that the holder of the office of Arbiter for

Financial Services shall be eligible to receive the pension referred to

herein, if the holder of such office is compelled to discontinue in

office due to serious medical reasons, even if the said individual has

not served a full term of office

Provided further that the Arbiter for Financial Services shall

forfeit the right to a pension if he or she is removed from office in

accordance with the provisions of Chapter VIII or Chapter VII,

respectively, of the Constitution of Malta due to proved

misbehaviour.

There shall be charged on and paid out of the Consolidated

Fund all such sums of money as may from time to time be granted by

way of pension to the holder of the office of Arbiter for Financial

Services.

PART IV

Competence

21.(1) (a) Nothing in this Act shall imply that a complaint

relating to the conduct of a financial service provider is

to be exclusively regulated by the provisions of this

Act

Provided that findings and conclusions reached by an

Arbiter following a complaint filed in terms of this Act

shall be binding on the parties, save for the right of

appeal regulated by article 27.

(b) An Arbiter shall have the competence to hear

complaints in terms of his functions under article 19(1)

in relation to the conduct of a financial service

provider which occurred on or after the first of May

2004

Provided that a complaint about conduct which

occurred before the entry into force of this Act shall be

made by not later than two years from the date when

this paragraph comes into force.

(c) An Arbiter shall also have the competence to hear

complaints in terms of his functions under article 19(1)

in relation to the conduct of a financial service

provider occurring after the coming into force of this

Act, if a complaint is registered in writing with the

financial services provider not later than two years from

the day on which the complainant first had knowledge

of the matters complained of.

(d) Conduct that is continuing in nature shall be presumed

to have occurred at the time when it stopped, and

conduct that consists of a series of acts or omissions

shall be presumed to have occurred when the last of

those acts or omissions occurred.

(2) An Arbiter shall decline to exercise his powers under this

Act where

(a) the conduct complained of is or has been the subject of

a law suit before a court or tribunal or is or has been the

subject of a complaint lodged with an ADR entity in any

other jurisdiction, initiated by the same complainant on

the same subject matter

Provided that nothing contained in this paragraph shall

be construed as impeding the Arbiter’s competence to

consider complaints which are being dealt with or

which have already been dealt with by the Malta

Financial Services Authority, and the recommendations,

rulings, directives or decisions of the said Authority shall

not be considered as having given rise to a res judicata

with respect to the complainant’s claim; or

(b) it results that the customer failed to communicate the

substance of the complaint to the financial service

provider concerned and has not given that financial

service provider a reasonable opportunity to deal with

the complaint prior to filing a complaint with the

Arbiter; or

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

or vexatious; or

(d) the complaint is submitted by an eligible applicant and

relates to an eligible application as defined in the Credit

2026. Review Office Act.

(3)

(a) An Arbiter may not award monetary compensation in

excess of two hundred and fifty thousand euro

(€250,000), together with any additional sum for

interest due and other costs, to each claimant for

claims arising from the same conduct.

(b) An Arbiter may, if he considers that fair compensation

requires payment for a larger compensation than that

stipulated in paragraph (a), recommend that the

financial service provider pay the complainant the

balance, but such recommendation shall not be binding

on the service provider.

(c) For the purpose of determining the euro equivalent of

claims for damages against a service provider

adjudged by the Arbiter to have been wholly or in part

substantiated, any foreign currency shall be converted

to euro at the middle rate of exchange published by the

Central Bank of Malta on the date of when the

complaint would have been filed with the Office of the

Arbiter.

(1) (a)Xejn f’dan l-Att m’għandu jimplika li l-ilment

relatat mal-imġiba ta’ fornitur tas-servizz finanzjarju

għandu jkun regolat esklussivament bid-

dispożizzjonijiet ta’ dan l-Att

Iżda riżultanzi u konklużjonijiet milħuqa minn Arbitru

wara li jkun tressaq ilment skont dan l-Att għandhom

jorbtu lill-partijiet, ħlief għad-dritt ta’ appell regolat bl-

artikolu 27.

(b) Arbitru għandu jkollu l-kompetenza li jisma’ lmenti

skont il-funzjonijiet tiegħu taħt l-artikolu 19(1) fir-

rigward tal-imġiba ta’ fornitur tas-servizz finanzjarju

li tkun seħħet fl-ewwel ta’ Mejju 2004 jew wara

Iżda lment dwar imġiba li tkun seħħet qabel id-dħul

fis-seħħ ta’ dan l-Att għandu jsir lill-Arbitru sa mhux

aktar tard minn sentejn minn meta dan il-paragrafu

jidħol fis-seħħ.

(ċ) Arbitru għandu jkollu wkoll il-kompetenza li jisma’

lmenti skont il-funzjonijiet tiegħu taħt l-artikolu 19(1)

fir-rigward tal-imġiba ta’ fornitur tas-servizz

finanzjarju li tkun seħħet wara l-bidu fis-seħħ ta’ dan

l-Att, jekk ilment jiġi reġistrat bil-miktub mal-fornitur

tas-servizz finanzjarju mhux iżjed tard minn sentejn

wara l-ġurnata li fiha l-persuna li tkun qed tagħmel l-

ilment l-ewwel kellha konoxxenza tal-kwistjonijiet li

lmentat dwarhom.

(d) Imġiba li tkompli fix-xorta għandha tiġi preżunta li

tkun seħħet fiż-żmien meta tkun waqfet, u imġiba li

tkun tikkonsisti minn serje ta’ atti jew ommissjonijiet

għandha tiġi preżunta li tkun seħħet meta l-aħħar minn

dawk l-atti jew ommissjonijiet ikunu seħħu.

(2) Arbitru għandu jirrifjuta li jeżerċita s-setgħat tiegħu taħt

dan l-Att meta

(a) l-imġiba li jkun sar l-ilment dwarha hi jew kienet

soġġetta għal kawża quddiem qorti jew tribunal jew hi

jew kienet soġġetta għal ilment ippreżentat quddiem entità

tal-ADR fi kwalunkwe ġuriżdizzjoni oħra, mibdija mill-

istess persuna li tkun qed tagħmel l-ilment u li tkun

dwar l-istess mertu

Iżda xejn minn dak li jinsab f’dan il-paragrafu

m’għandu jinftiehem li jimpedixxi l-kompetenza tal-

Arbitru li jikkunsidra lmenti li jkunu qegħdin jiġu

trattatti jew li jkunu ġew trattati mill-Awtorità għas-

Servizzi Finanzjarji ta’ Malta, u r-rakkomandazzjonijiet,

direttivi jew deċiżjonijiet mogħtija minn dik l-Awtorità

m’għandhomx jiġu kkunsidrati bħala li taw lok għal res

judicata tal-każ tal-persuna li tkun qed tagħmel l-ilment;

jew

(b) ikun jirriżulta li l-klijent naqas milli jikkomunika s-

sustanza tal-ilment lill-fornitur tas-servizz finanzjarju

involut u ma jkunx ta opporuntità raġonevoli lill-

fornitur tas-servizz finanzjarju sabiex jittratta l-ilment

qabel ma jkun ressaq l-ilment mal-Arbitru; jew

(ċ) l-ilment ikun, fil-fehma tal-Arbitru, frivolu

jew

vessatorju; jew

(d) l-ilment huwa sottomess minn applikant eliġibbli u

għandu x’jaqsam ma’ applikazzjoni eliġibbli kif imfissra

2026. fl-Att dwar l-Uffiċċju għall-Analiżi tal-Kreditu.

(3)

(a) Arbitru ma jistax jagħti kumpens fi flus ta’ iżjed minn

mitejn u ħamsin elf euro (€250,000), flimkien ma’ kull

somma addizzjonali għal imgħax dovut u spejjeż oħra,

għal kull persuna li tkun qed tagħmel l-ilment għal

pretensjonijiet li joħroġu mill-istess imġiba.

(b) Arbitru jista’, jekk iqis li kumpens ġust għandu jkun

ikbar minn dak imsemmi fil-paragrafu (a),

jirrakkomanda li l-fornitur tas-servizzi finanzjarji

jħallas lill-persuna li tkun għamlet l-ilment, il-bilanċ,

iżda din ir-rakkomandazzjoni ma torbotx lill-fornitur

tas-servizz.

(ċ) Għall-fini li jiġi stabbilit l-ekwivalenti f’euro tal-

pretensjonijiet għad-danni kontra fornitur tas-servizz

deċiz mill-Arbitru li jkun totalment jew parzjalment

sostanzjat, kull valuta barranija għandha tiġi

konvertita għal euro bir-rata medja tal-kambju kif

ppubblikata mill-Bank Ċentrali ta’ Malta fid-data ta’

meta l-ilment ikun ġie mressaq quddiem l-Uffiċċju tal-

Arbitru.

(1) A financial services provider shall be bound to follow such

procedures that it is subject to for responding to a complaint and shall be

bound to provide a final reply to the complainant in writing by not later

than fifteen (15) working days from when the complaint is registered in

writing with the financial services provider

Provided that, if due to exceptional circumstances beyond the

control of the financial services provider, a final reply to a complaint

cannot be given within such fifteen (15) working days, the financial

services provider shall

(i)

inform the complainant about the reasons for the

delay; and

(ii)

provide an indication as to when a final reply is

likely to be provided.

In such an event, a final reply shall be provided within thirty-five

(35) working days from the receipt of a complaint in writing.

(2) A final reply shall include clear information about the

complainant’s right to refer a complaint to the Arbiter with complete

contact details of the Office of the Arbiter for Financial Services and

that time limits may apply for bringing such a complaint to such dispute

resolution mechanism.

PART V

Proceedings

(1) A complainant shall complain to the Arbiter in writing

identifying the party against whom the complaint is made, the

reasons for the complaint, and the remedy that is being sought and

articles 2131 and 2132 of the Civil Code shall apply mutatis mutandis

for the interruption of prescription as from the registration of such a

complaint by the Office. The referral of any matter to the Arbiter shall

have the same effect with regard to prescription as a judicial action

before a competent court and article 2117A of the Civil Code shall

apply mutatis mutandis. Any reference in this Act to prescription shall

be construed as a reference to prescription under the Civil Code.

(2) Upon receipt of a complaint, the Arbiter shall determine

whether the complaint falls within his competence.

(3) An Arbiter shall not proceed to deal with a complaint unless

the Arbiter has

(a) informed the respondent of the complaint;

(b) provided the respondent with such particulars as will

enable him to reply thereto; and

(c) provided the respondent with an opportunity to submit

a reply to the complaint. Such reply shall be forwarded

to the Arbiter within twenty days from when the

Arbiter communicates the complaint to the respondent.

The complainant and the respondent have a right to be

represented and assisted by a person or persons of their trust.

(4) An Arbiter may make preliminary inquiries for the purpose

of deciding whether a complaint should be investigated under this

Part, and may request the complainant to provide further

information within a specified period of time

Provided that the Arbiter may decide not to continue to deal

with the complaint if the complainant fails to comply with a request

for further information within the period specified by the Arbiter.

(5) As soon as practicable after the Arbiter has determined that

the complaint does not fall within his competence, or after deciding

to discontinue with the complaint, the Arbiter shall

(a) inform the complainant in writing of the decision and

reasons for it; and

(b) provide the Board with a copy of the decision.

(6) On submitting a complaint with the Office of the Arbiter for

Financial Services, the complainant shall pay a fee as prescribed

under this Act, and which fee shall be reimbursed only in the case

where the complainant decides to withdraw the complaint or if both

parties agree on a settlement of the dispute, and in both instances

the Arbiter is notified in writing of the decision, which notification

shall reach the Arbiter ’s Office before the Arbiter shall have

reached a decision that the complaint falls within his competence.

(7)

If -

(a) before the Arbiter shall have reached a decision, the

complainant notifies the Arbiter in writing of the

withdrawal of its complaint; or

(b) the parties agree on a settlement of the dispute,

whether as a result of mediation in terms of article 24

or otherwise; or

(c) the continuation of the complaint procedures becomes

unnecessary or impossible for any reason,

the Arbiter shall

(i)

either issue an order for the termination of the

complaint procedures; or

(ii) if requested by both parties and accepted by the

Arbiter, record the settlement on the agreed

terms.

(8) Subject to the provisions of this Act and of any rules made

thereunder as stipulated by article 33, the Arbiter shall regulate the

proceedings as he thinks fit and proper in accordance with the rules

of natural justice

Provided that no proceedings before the Arbiter shall be

invalid because of any non-observance of any formalities if there

has been substantive compliance with the law.

(1) Unless otherwise agreed by the parties, any party may

request the court to issue any of the precautionary acts listed in

article 830(1) of the Code of Organization and Civil Procedure,

subject to the provisions of the following sub-articles.

(2) Where in accordance with sub-article (1) a precautionary

act has been issued, such act shall remain in force until such time as

it shall expire or be revoked in accordance with the provisions of

the Code of Organization and Civil Procedure or until such time as

the Arbiter -

(a) shall have determined that the complaint does not fall

within his competence, or after deciding to discontinue

with the complaint in terms of article 22; or

(b) having adjudged the complaint, shall order the party

issuing the precautionary act to withdraw the same and

issue the relative counter-warrant.

(3) Notwithstanding anything contained in the Code of

Organization and Civil Procedure the time established therein

within which the action is to be instituted in respect of the right

stated in the precautionary act issued shall be of twenty days from

the filing of the judicial act whereby the court is requested to issue

the precautionary act. The provisions of the said Code for the

extension of the said time shall also apply.

(4) Action as is referred to in sub-article (3) shall be deemed to

have been taken, and complaint procedures with the Arbiter shall

be deemed to have commenced, when the complaint in writing is

submitted by the complainant to the Arbiter in terms of article

22(1).

(5) The party at whose request a precautionary act has been

issued in accordance with this article shall, within the time

specified in sub-article (3), file a note in the records of the

proceedings for the issue of the said precautionary act together with

a certificate issued by the Arbiter acknowledging the party’s

complaint.

(6) The Board established under article 29 of the Code of

Organization and Civil Procedure may make rules concerning all

matters relating to the issue of precautionary acts and other such

orders when they relate to complaint procedures submitted to the

Arbiter.

(1) A complaint about the conduct of a financial services

provider shall, as far as possible, be primarily dealt with by

mediation.

(2) Participation in the mediation by the parties to a complaint

shall be voluntary, and a party may withdraw from participation at

any time.

(3) The mediation process shall be carried out by the officers

appointed by the Board under article 8(1), whose function shall be to

act as a mediator between the complainant and the financial

services provider. A list of such officers shall be held by the Board

Provided that the mediator may abandon an attempt to

resolve a complaint by mediation on forming the view that the

attempt is not likely to succeed.

(4) Subject to the foregoing provisions and to any regulations

made under sub-article (7), the mediator may regulate his own

proceedings.

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

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

resolution thereof published under any format.

(6) No appeal shall lie in terms of article 27 from anything

done by an officer acting in his capacity as mediator.

(7) The Minister may, after consultation with the Arbiter and

the Board, make regulations to give better effect to the provisions

of this article and, without prejudice to the generality of the

foregoing, he may

(a) establish the procedure to be followed by the officer in

his capacity as mediator;

(b) prescribe the types of applications

which

a

complainant may refer to the officer; and

(c) prescribe the procedure to be followed in the

formulation of a report by the officer.

(1) Where the mediation process under article 24 proves

unsuccessful, the Arbiter shall proceed to deal with the necessary

investigations in private.

(2)

(a) The Arbiter shall provide the parties with an

opportunity to make oral and, or written submissions

with respect to the conduct complained of.

(b) Written submissions shall be filed within twenty days,

and such period shall commence to run from the day

on which the parties receive communication in writing

about the investigation from the Arbiter.

(c) Written submissions made by a party to the Arbiter

shall be notified to the other party or to the person

assisting or representing the party in terms of article

22(3).

(d) Whenever a notification or communication to the other

party shall be required under this Act, such

notification or communication shall take place by

recorded delivery through the post or courier service or

by electronic means.

(3)

(a) The Arbiter shall hold at least one sitting for the hearing of

the complaint.

(b) The Arbiter shall determine the admissibility,

relevance, materiality and weight of the documentary

and oral evidence.

(c) Hearings are to be held in public unless the Arbiter, giving

reasons, otherwise decides.

(d) Neither party shall be required to be represented or

assisted for oral hearings. If only one party is

represented or assisted, the Arbiter shall ensure the

hearing remains fair to both parties.

(4) In the process of investigation, the Arbiter shall inform the

parties of the progress made.

(5) The Arbiter may request the production of information or

documentation from either of the parties or from a third party, as

the case may be, which the Arbiter considers necessary or relevant

for the determination of the complaint, which information or

documentation is to be provided before the end of such reasonable

period as the Arbiter shall specify, and in the case of information,

in such manner or form as may be specified by the Arbiter

Provided that for the purpose of obtaining such information

or documentation, the Arbiter shall have the power to summon

witnesses and to administer an oath to any witness and to any

person concerned in the investigation, including the complainant

and the service provider, and to require persons to give evidence,

and the rules of the Code of Organization and Civil Procedure shall

apply mutatis mutandis to the production of evidence before the

Arbiter

Provided further that any person who is summoned to

appear before the Arbiter under this article shall have the same

rights and obligations as a witness summoned to appear before the

court of civil jurisdiction.

(6)

(a) Information obtained by the Arbiter or by any officer

or person in his Office in the course of or for the

purpose of an investigation under this Act shall not be

disclosed except for the purposes of

(i) the investigation and adjudication;

(ii) any report made under this Act; or

(iii) any proceedings relating to an offence under this

Act.

(b) The Arbiter, officers or persons in his Office shall not

be called upon to give evidence in any proceedings,

other than as mentioned under paragraph (a), on

matters coming to their knowledge in the course of an

investigation or of the execution of other duties carried

out by them under this Act.

(c) Article 133 of the Criminal Code shall apply to and in

relation to the Arbiter and any officer or person in his

Office as they apply to or in relation to a public officer

or servant referred to in the said article of the

Criminal Code.

(7) In the process of an investigation, the Arbiter may enter and

inspect any premises occupied or used by the financial services

provider or by any person or body who in the opinion of the Arbiter

is associated with the financial service provider and inspect any

document or thing within the premises.

(8) The language of the procedure before the Arbiter shall be

either Maltese or English as the Arbiter may determine in accordance

with the particular circumstances of each case.

(1) Following completion of an investigation of a

c o m p l a i n t u n d e r a r t ic l e 2 5 , t h e A r b i t e r s h a l l p r o c e e d w i t h

adjudication.

(2) The Arbiter shall proceed to adjudication within ninety

days from the date of receipt of the complaint

Provided that where a complaint is complex in nature, the

Arbiter shall deliver his findings at the earliest opportunity being a

date not later than one year from the date of receipt of the complaint and

shall inform the parties concerned of the expected adjudication

date

Provided further that no nullity shall ensue from failure to

meet the time limits provided for in this sub-article.

(3)

(a) The findings and conclusions reached by the Arbiter

shall be drawn up, in writing, in a decision giving the

Arbiter’s reasons therefor that shall be read out in public

on a day duly notified to the parties.

(b) The decision may include any direction given under

paragraph (c).

(c) If the complaint is found to be wholly or in part

substantiated, the Arbiter may direct the financial

services provider to do one or more of the following

(i) to review, rectify, mitigate or change the conduct

complained of or its consequences;

(ii) to provide reasons or explanations for that

conduct;

(iii) to change a practice relating to that conduct;

(iv) to pay an amount of compensation for any loss

of capital or income or damages suffered by the

complainant as a result of the conduct

complained of, without or with interest, at such

reasonable rate and within the parameters

established by law as the Arbiter may determine,

on the whole or any part of the money, and for

the whole or any part of the period between the

date on which the conduct complained of had

started until the date of payment;

(v) to specify the period within which the direction

is to be carried out by the financial service

provider.

(d) In his decision the Arbiter shall also adjudicate the

costs of the proceedings, by whom they shall be borne

and, if necessary, in what proportion, according to the

circumstances of the case.

(e) In the event that a financial services provider becomes

insolvent within the meaning attributed to that term by any

laws or regulations providing for an investor compensation

scheme, a depositor compensation scheme or a protection

and compensation fund or any other compensation scheme

or fund applicable in respect of the financial services

provider sector to which that financial services provider

belongs, and as a consequence of the said insolvency the

financial services provider is not in a position to pay the

compensation that has been awarded by or following a

decision of the Arbiter, the complainant is notwithstanding

any other law, to be paid up to twenty thousand euro from

the said fund or scheme applicable in the financial services

provider sector to which the financial services provider

belongs.

(4) Within fifteen days from the date when the decision of the

Arbiter is notified to the parties, either party, with notice to the

other party, may request that the Arbiter give a clarification of the

award, or request the Arbiter to correct any errors in computation

or clerical or typographical errors or similar error contained in the

decision of the Arbiter. The Arbiter shall give such clarification or

make any necessary correction within fifteen days from the receipt

of a party’s request.

(1) The decision reached by the Arbiter, including any

interlocutory decisions, may be subject to appeal by either party.

(2) (a) The appeal from a decision as referred to in sub-article

(1) shall lie to the Court of Appeal (Inferior

Jurisdiction) constituted in terms of article 41(9) of the

Code of Organization and Civil Procedure.

(b) Appeals from interlocutory decisions may only be

entered after the final decision.

(3) An appeal to the Court of Appeal (Inferior Jurisdiction) in

terms of article 41(9) of the Code of Organization and Civil

Procedure shall be filed in the registry of the said Court within

twenty days from the date when the decision of the Arbiter is

notified to the parties or, in the event that a request for clarification

or correction of a decision is requested in terms of article 26(4),

from the date when such interpretation or clarification or correction

made by the Arbiter shall be notified to the parties, and such an

appeal shall be regulated by the rules of court made under article 29

of the Code of Organization and Civil Procedure.

(4) Where no appeal is filed by any party, the decision of the

Arbiter shall become res judicata.

(5)

A copy of such a decision shall be provided by the Arbiter

to the Board. Such decisions shall be held in an appropriate

Register, which Register shall be accessible to the public upon

request.

(6) After the decision of the Arbiter becomes res judicata as

stipulated in sub-article (4), if in the Arbiter ’s opinion there is

substantial evidence of any significant breach of duty or

misconduct on the part of a financial services provider, or any

criminal conduct of any of the parties, the Arbiter shall refer the

matter to the competent authorities to take any further appropriate

action, if any, according to law.

(7) A decision of the Arbiter that has become res judicata, the

terms of settlement recorded by the Arbiter in terms of article

22(7)(c)(ii) and a decision of the Court of Appeal (Inferior

Jurisdiction), shall constitute an executive title in terms of article

253 of the Code of Organization and Civil Procedure.

(1)

For the proper discharge of their respective duties, the

Office and competent authorities shall cooperate and exchange

information about issues that, in the Arbiter’s opinion, are likely to have

wider regulatory implications, including issues that appear to affect

multiple customers of one (1) or more financial service providers.

(2)

The Arbiter may direct the Board to enter into a

memorandum of understanding with such competent authorities, setting

out the terms under which they agree to comply with sub-article (1).

Such agreements shall be publicly available in electronic format or on

request.

(3)

Any information divulged or exchanged pursuant to this

article shall be treated as confidential by the respective parties, and its

disclosure may only be permitted if prior consent of the respective

parties is obtained in writing.

(4) Such exchange of information shall be without prejudice to

article 27(6).

(1) Any request for information shall be made by an

eligible customer or financial services provider to the Office orally

or in writing.

(2) A request for information under sub-article (1) shall be

carried out by the officers appointed by the Arbiter under article

19(4), from the list of officers held by the Board.

(3) In carrying out the function under sub-article (2), the

officer shall regulate his own procedure.

(4) The findings on the request for information given by the

officer shall be notified to the Board, and communicated to the

person who lodged the request for information within thirty days

from the date of its receipt by the Office by whatever means, even

informally.

(5) The findings of any request for information shall only be

informative in nature, and may not be brought as evidence in a law

suit before any court or tribunal.

(6) The Minister may, after consultation with the Arbiter and

the Board, make regulations to give better effect to the provisions

of this article.

PART VI

Miscellaneous

(1) The Arbiter may delegate in writing to any person

holding any office under him any of his powers under this Act,

except this power of delegation and the power to take decisions and

adjudicate.

(2) A delegation of functions under this Act shall be without

prejudice to the exercise of those functions by the Arbiter, and shall

be revocable by the Arbiter at will.

The Arbiter may, if he thinks fit, treat individual complaints

made with the Office together, provided that such complaints are

intrinsically similar in nature.

Except as otherwise stated in this Act, the Office of the

Arbiter and the Arbiter shall enjoy full immunity from any civil or

criminal action for any act or omission in or arising from the

execution of their official duties unless it is shown that the person

concerned acted in bad faith.

(1) Any person who -

(a) fails to comply with any order given by the Arbiter

shall be guilty of an offence against this Act and shall

on conviction be liable to a fine (multa) of not less

than five hundred euro (€500) and not more than one

thousand euro (€1,000);

(b) obstructs the Arbiter in the exercise of the powers

conferred by this Act shall be guilty of an offence

against this Act and shall be liable, on conviction, to a

fine (multa) of five hundred euro (€500);

(c) when summoned to give evidence before the Arbiter or

any officer under this Act, gives information knowing

that such information is false or misleading, shall be

guilty of an offence against this Act and shall be liable,

on conviction, to a fine (multa) of five hundred euro

(€500).

(2) Proceedings against any person for any offence as is

mentioned in sub-article (1) shall be instituted before the Court of

Magistrates (Malta) or the Court of Magistrates (Gozo), as the case

may be, as courts of criminal judicature in accordance with the

provisions of the Criminal Code.

The Minister may, in consultation with the Arbiter and the

Board, make regulations

(a) to establish the procedure for the filing and handling

of complaints;

(b) to establish the procedure for the investigation of

complaints;

(c) to establish the procedure for the adjudication of

complaints;

(d) to establish the levies and charges payable under this

Act and fees in respect of professional or consultancy

services rendered to customers in relation to claims or

proceedings under this Act;

(e) to establish the persons or bodies to whom this Act

shall not apply;

(f)

to specify circumstances in which the Arbiter may

dismiss a complaint without considering its merits;

(g) to specify the place or places at which the Arbiter is

required to make available copies of its findings,

decisions and any report that the Arbiter is required to

prepare;

(h) to give better effect to any of the provisions of this Act,

and for the better enforcement thereof; and

(i)

to make regulations to transpose, implement and give

effect to the provisions and requirements of Directives,

Regulations and any other legislative measures of the

European Union requiring transposition and, or

implementation, as they may be amended from time to

time, including any implementing measures that have

been or may be issued thereunder.

The Minister shall be vested with authority for the

purposes of Directive 2013/11/EU of the European

Parliament and of the Council on alternative dispute

resolution for consumer disputes to appoint the ADR

entity for financial services as defined therein.