Credit Institutions and Financial Institutions (Payment Accounts)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,069, 12 ta’ Ottubru, 2018

L.N. 324 of 2018

BANKING ACT

(CAP. 371)

FINANCIAL INSTITUTIONS ACT

(CAP. 376)

Credit Institutions and Financial Institutions (Payment Accounts)

(Amendment) Regulations, 2018

IN EXERCISE of the powers conferred by article 3 of the

Banking Act and article 12 of the Financial Institutions Act, the

Minister responsible for the regulation of Financial Services, acting on

the advice of the Malta Financial Services Authority, has made the

following regulations:-

The title of these regulations is the Credit Institutions and Citation.

Financial Institutions (Payment Accounts) (Amendment) Regulations,

2018 and they shall be read and construed as one with the Credit S.L. 371.18.

Institutions and Financial Institutions (Payment Accounts)

Regulations, hereinafter referred to as "the principal regulations".

Regulation 1 of the principal regulations shall be amended Amends

regulation 1 of

as follows

the principal

regulations.

(a) in sub-regulation (3) thereof, for the words "rules

concerning the switching of payment accounts within Malta and

other Member States", there shall be substituted the words, "rules

concerning the switching of payment accounts within Malta";

(b) in sub-regulation (4) thereof, for the words "rules and

conditions to which Malta is required to guarantee a right for

consumers", there shall be substituted the words, "rules and

conditions according to which Malta is required to guarantee a

right for consumers";

(c) for sub-regulation (5) thereof, there shall be

substituted the following

"(5) Parts 2 and 3 of these regulations shall apply to

payment service providers, whereas Part 4 of these

regulations shall apply to credit institutions.";

(d) immediately after sub-regulation (5) thereof, there

shall be added the following new sub-regulations (6), (7) and (8)

"(6) Regulations 8, 10, 12 and 13 shall enter into

force on such date as the Minister may by notice in the

Gazette establish.

(7) These regulations apply to payment accounts

through which consumers are able at least to

(a)

place funds in a payment account;

(b)

withdraw cash from a payment account;

and

(c) execute and receive payment transactions,

including credit transfers, to and from a third party.

(8) The opening and use of a payment account with

basic features pursuant to these regulations shall be in

conformity with any anti-money laundering and combating

the funding of terrorism obligation arising from applicable

law.".

Regulation 2 of the principal regulations shall be amended

as follows

(a)

in sub-regulation (1) thereof

(i)

the definition "branch" shall be deleted;

(ii) immediately after the definition "business day",

there shall be added the following new definition

" "Central Bank" shall have the same meaning

as that assigned to it in the Banking Act;";

(iii) in the definition "credit transfer", for the words

"means a national or cross-border payment service", there

shall be substituted the words, "means a national payment

service or a cross-border payment service in and outside

Malta,";

(iv) in the definition "direct debit", for the words

"means a national or cross-border payment service", there

shall be substituted the words, "means a national payment

service or a cross-border payment service in and outside

Malta,";

(v)

the definition "Directive 2005/60/EC" shall be

deleted;

(vi) immediately after the definition "Directive

2008/48/EC", there shall be added the following new

definition

" "Directive 2009/110/EC" means Directive

2009/110/EC of the European Parliament and of the

Council of 16 September 2009 on the taking up,

pursuit and prudential supervision of the business of

electronic money institutions amending Directives

2005/60/EC and 2006/48/EC and repealing Directive

2000/46/EC, as amended from time to time, and

includes any implementing measures that have been

or may be issued thereunder;";

(vii) in

the

definition

"EU

standardised

terminology", for the words "in accordance with regulation

3(1);", there shall be substituted the words, "in accordance

with Article 3(4) of the Payment Accounts Directive;";

(viii) immediately after the definition "EU

standardised terminology" as amended, there shall be added

the following new definition

" "European regulatory authority" means a

public authority or a body in another Member State,

which is empowered by law or regulation to ensure

the application and enforcement of the Payment

Accounts Directive;";

(ix) for the definition "fee information document",

there shall be substituted the following

" "fee information document" means the fee

information document referred to in regulation 8;";

(x)

immediately after the definition "fee

information document" as substituted, there shall be added

the following new definition

" "Financial Intelligence Analysis

Unit" means the Financial Intelligence

Analysis Unit established by the

Prevention of Money Laundering Act;";

(xi) immediately after the definition "framework

contract", there shall be added the following new

definition

" "funding of terrorism" has the

same meaning as is assigned to it by the

Prevention of Money Laundering Act;";

(xii) in the definition "legally resident in Malta or in

another Member State", for the words "means a natural

person who has the right", there shall be substituted the

words, "means where a natural person has the right";

(xiii) for the definition "Minister", there shall be

substituted the following

" "Minister" means the Minister responsible for

the regulation of Financial Services;";

(xiv) immediately after the definition "Minister" as

substituted, there shall be added the following new

definition

" "money laundering" has the

same meaning as is assigned to it by the

Prevention of Money Laundering Act;";

(xv) for the definition "payment instrument", there

shall be substituted the following

" "payment instrument" has the

same meaning as that assigned to it in

the Financial Institutions Act;";

(xvi) for the definition "payment service", there shall

be substituted the following

" "payment service" has the same

meaning as that assigned to it in the

Financial Institutions Act;";

(xvii)for the definition "payment service provider",

there shall be substituted the following

" "payment service provider"

refers to the following categories

(a) credit

institutions,

including branches thereof as

defined in article 2(1) of the

Banking Act where such branches

are located in the European

Union, irrespective of whether the

head offices of those branches are

located within the European

Union or, in accordance with

Article 47 of Directive 2013/36/

EU and with national law, outside

the European Union;

(b) electronic

money

institutions, being legal persons,

that have been granted authorisation

under Title II of Directive 2009/

110/EC to issue electronic money,

including, in accordance with

Article 8 of that Directive and with

national law, branches thereof,

where such branches are located

within the European Union and

their head offices are located

outside the European Union, in as

far as the payment services

provided by those branches are

linked to the issuance of electronic

money;

(c) post

office

giro

institutions which are entitled under

national law to provide payment

services;

(d) payment institutions;

(e) the European Central

Bank and national central banks

when not acting in their capacity as

monetary authority or other public

authorities;

(f) Member States or their

regional or local authorities when

not acting in their capacity as public

authorities; or

(g) A

legal

person

benefiting from an exemption

pursuant to Article 32 or 33 of

Directive (EU) 2015/2366 of the

European Parliament and of the

Council of 25 November 2015 on

payment services in the internal

market, amending Directives 2002/

65/EC, 2009/110/EC and 2013/36/

EU and Regulation (EU) No 1093/

2010, and repealing Directive 2007/

64/EC, as amended from time to

time

and

including

any

implementing measures that have

been or may be issued thereunder;";

(xviii)for the definition "statement of fees", there

shall be substituted the following

" "statement of fees" means the statement of

fees referred to in regulation 10;"; and

(b) in paragraph (b) of sub-regulation (2) thereof, for the

words "Central Bank of Malta", there shall be substituted the

words "Central Bank".

Regulation 3 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof, for the words "the EU

standardised terminology", there shall be substituted the words,

"EU standardised terminology in accordance with Article 3(4) of

the Payment Accounts Directive,";

(b)

in sub-regulation (2) thereof

(i) in paragraph (a) thereof, for the words

"payment service provider;", there shall be substituted the

words, "payment service provider in Malta;";

(ii) in paragraph (b) thereof, for the words "services

identified; and", there shall be substituted the words,

"services identified;";

(iii) for paragraph (c) thereof, there shall be

substituted the following

"(c) include only one term for each service in

both Maltese and English;"; and

(iv) immediately after paragraph (c) thereof, there

shall be added the following new paragraphs (d) and (e)

" (d) have regard to the services that are most

commonly used by consumers in relation to their

payment account; and

(e) have regard to the services that generate

the highest cost for consumers, both overall as well as

per unit.".

In regulation 4 of the principal regulations, for the words Amends

"shall use the terminology set out in the list", there shall substituted the regulation

the principal

words "shall use the standardised terminology set out in the list".

regulations.

Regulation 5 of the principal regulations shall be amended Amends

regulation 5 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof, for the words

"following publication of the list of the most representative

services linked to a payment account,", there shall be substituted

the words, "following publication of the list referred to in

regulation 3(1),", and for the words "update the list.", there shall

be substituted the words, "update the list of the most

representative services established pursuant to regulation 3.";

and

(b) in sub-regulation (2) thereof, for the words "and to

EBA", there shall be substituted the words "and to the EBA", and

for the words "with the updated list.", there shall be substituted

the words, "with the updated list of the most representative

services.".

Regulation 6 of the principal regulations shall be amended Amends

regulation 6 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof, for the words, "the

competent authority shall revise the list of the most

representative services linked to a payment account and make

any consequential amendments thereto.", there shall be

substituted the words, "the competent authority shall update the

list of the most representative services linked to a payment

account and publish on its website such updated list without

delay, and at the latest within three months of entry into force

of the changes adopted by the European Commission to the

regulatory technical standards setting out the EU standardised

terminology."; and

(b) for sub-regulation (2) thereof, there shall be

substituted the following

"(2) Payment service providers shall adopt and use

the updated list of the most representative services linked

to a payment account published by the competent

authority in accordance with sub-regulation (1).".

Regulation 7 of the principal regulations shall be amended

as follows

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) A payment service provider shall make

available to consumers a glossary of at least the

standardised terms set out in the list of the most

representative services linked to a payment account

established pursuant to regulation 3, as may be amended

from time to time in accordance with regulation 6(1), and

the related definitions.";

(b) in sub-regulation (2) thereof, for the words "in

English and Maltese and may also be available in any other

language as agreed by the payment service provider", there shall

be substituted the words, "in English and Maltese and in any

other language agreed upon by the payment service provider";

(c) in sub-regulation (3) thereof, for the words "The

glossary, including other definitions,", there shall be substituted

the words, "The glossary referred to in sub-regulation (1),

including other definitions, if any,".

For sub-regulation (1) of regulation 8 of the principal

regulations, there shall be substituted the following

"(1) Without prejudice to Article 42(3) of Directive

2007/64/EC and Chapter II of Directive 2008/48/EC, a

payment service provider shall, in good time before entering

into a contract for a payment account with a consumer, provide

the consumer with a fee information document.".

Regulation 9 of the principal regulations shall be amended

as follows

(a) for paragraph (b)(ii) of sub-regulation (1) thereof,

there shall be substituted the following

"(ii) made accessible to consumers in the premises

of the payment service provider.";

(b) for sub-regulation (2) thereof, there shall be

substituted the following

"(2) Upon request by a consumer, the payment

service provider shall provide the fee information

document and the glossary on paper or another durable

medium free of charge."; and

(c)

sub-regulation (3) thereof shall be deleted.

In sub-regulation (1) of regulation 10 of the principal Amends

regulations, for the words "a payment service provider shall provide regulation

the principal

consumers with an annual or periodic statement of fees free of regulations.

charge.", there shall be substituted the words, "a payment service

provider shall provide consumers, at least annually and free of charge,

with a statement of fees.".

Regulation 12 of the principal regulations shall be amended Amends

regulation 12 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof, for the words "terms set

out in the list of the most representative services linked to

payment accounts.", there shall be substituted the words, "terms

set out in the list of the most representative services linked to a

payment account established pursuant to regulation 3, as may be

amended from time to time in accordance with regulation 6(1).";

and

(b) in sub-regulation (2) thereof, for the words "provided

such brand names are used in addition to the terms set out in the

list of the most representative services linked to payment

accounts", there shall be substituted the words, "provided that

such brand names are used in addition to the standardised terms

set out in the list of the most representative services linked to a

payment account established pursuant to regulation 3, as may be

amended from time to time in accordance with regulation 6(1),".

Regulation 13 of the principal regulations shall be amended Amends

regulation 13 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof, for the words "payment

account.", there shall be substituted the words, "payment account

established pursuant to regulation 3, as may be amended from

time to time in accordance with regulation 6(1).";

(b)

in sub-regulation (2) thereof

(i) for the words "The comparison website shall:",

there shall be substituted the words, "The comparison

website referred to in sub-regulation (1) shall:";

(ii) in paragraph (c) thereof, for the words "the

comparison shall be based;", there shall be substituted the

words, "the comparison will be based;";

(iii) for paragraph (d) thereof, there shall be

substituted the following

"(d) use plain and unambiguous language

and, where applicable, the standardised terms set

out in the list of the most representative services

linked to a payment account established pursuant to

regulation 3, as may be amended from time to time

in accordance with regulation 6(1);";

(iv) in paragraph (f) thereof, for the words

"covering a significant part of the market, and where the

information presented is not a complete", there shall be

substituted the words, "covering a significant part of the

market and, where the information presented is not a

complete";

(c) immediately after sub-regulation (2) thereof, there

shall be added the following new sub-regulations (2A) and (2B)

"(2A) The competent authority may, in addition to the

list of the most representative services linked to a payment

account, compile and publish any other comparative

information with respect to products and services offered

by payment service providers.

(2B) For the purposes of establishing the comparison

website referred to in sub-regulation (1), payment service

providers shall

(a) provide the competent authority with the

fees charged for the services included in the list of the

most representative services linked to a payment

account established pursuant to regulation 3, as may

be amended from time to time in accordance with

regulation 6(1);

(b) provide to the competent authority any

other information which may be requested by the

competent authority for the purposes of publishing

additional comparative information in accordance

with sub-regulation (2A);

(c) update the competent authority about any

changes to the information provided to the competent

authority in accordance with paragraphs (a) and (b).";

(d) for sub-regulation (3) thereof, there shall be

substituted the following

"(3) (a) Private operators or other public

authorities may also establish and operate a website

comparing fees charged by payment service providers for at

least the services included in the list of the most

representative services linked to a payment account

established pursuant to regulation 3, as may be amended

from time to time in accordance with regulation 6(1).

(b) Any comparison websites

established

in

accordance with paragraph (a) shall

(i) Clearly disclose details of the owner, or

owners, of the comparative website; and

(ii) Adhere to the minimum criteria laid out in

sub-regulation (2)(a), (c), (d), (e), (f) and (g).

(c) Any entity wishing to operate and compile a

comparison website shall notify the competent authority in

writing.

(d) The competent authority may require private

operators or other public authorities providing a

comparison website in accordance with this sub-regulation

to include further comparative determinants relating to the

level of service offered by payment service providers.";

(e) for sub-regulation (4) thereof, there shall be

substituted the following

"(4) The competent authority shall publish online a

list of the websites which comply with this regulation.";

and

(f)

sub-regulation (5) thereof shall be deleted.

For sub-regulation (1) of regulation 15 of the principal

regulations, there shall be substituted the following

"(1) A payment service provider shall offer a switching

service as described in this regulation and in Schedule 3 between

payment accounts held in the same currency to any consumer

who opens or holds a payment account with a payment service

provider located in Malta.".

Regulation 16 of the principal regulations shall be amended

as follows

(a) for the marginal note thereof, there shall be

substituted the following

"Facilitation of cross-border account opening within

the European Union for consumers.";

(b)

in sub-regulation (1) thereof

(i) for the words "with a payment service provider

located outside Malta, but within another Member State,

the Maltese payment service provider shall, on a date

specified by the consumer:", there shall be substituted the

words, "with a payment service provider located in

another Member State, the Maltese payment service

provider shall, on receipt of such request, and subject to

sub-regulation (2), provide the following assistance to

the consumer:";

(ii) in the proviso to paragraph (a)(ii) thereof, for

the words "Provided that there is no obligation", there shall

be substituted the words, "Provided that this shall not entail

any obligation";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) transfer any positive balance remaining

on the payment account held by the consumer to the

payment account opened or held by the consumer

with the new payment service provider located in

another Member State; and";

(iv) in paragraph (c) thereof, for the words "by the

consumer with the Maltese payment service provider.",

there shall be substituted the following, "by the consumer.";

(c) for sub-regulation (2) thereof, there shall be

substituted the following

"(2) Without prejudice to Articles 45(1) and 45(6) of

Directive 2007/64/EC, and if the consumer does not have

any outstanding obligations on a payment account, the

Maltese payment service provider shall conclude the steps

set out in sub-regulation (1) on the date specified by the

consumer, which, unless otherwise agreed between the

consumer and the Maltese payment service provider, shall

be at least six business days after the Maltese payment

service provider receives the consumer’s request."; and

(d) for sub-regulation (3) thereof, there shall be

substituted the following

"(3) The requirement in sub-regulation (1)(b) shall

only apply where the consumer has

(a)

requested that the transfer be made; and

(b) provided full details of the account

opened or held with another payment service provider

in another Member State, including any necessary

details which are required by the Maltese payment

service provider in order to identify the new payment

service provider located in another Member State and

the payment account opened or held by the consumer

with the new payment service provider.".

In the proviso to sub-regulation (2) of regulation 18 of the Amends

principal regulations, for the words "the provisions of these regulation

the principal

regulations", there shall be substituted the words, "the provisions of regulations.

Part 4 of these regulations".

Regulation 19 of the principal regulations shall be amended Amends

regulation 19 of

as follows

the principal

regulations.

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) Consumers legally resident in Malta or in

another Member State shall be eligible to open and use a

payment account with basic features.";

(b)

immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulation (3A)

"(3A) Credit institutions may, in full respect of the

fundamental freedoms guaranteed by the Treaties , require

consumers who wish to open a payment account with basic

features, to show a genuine interest in doing so.";

(c) for sub-regulation (4) thereof, there shall be

substituted the following

"(4) Credit institutions that offer payment accounts

with basic features may refuse an application for such an

account where a consumer already holds a payment account

with any credit institution located in Malta, and where that

account has at least the features set out in regulation 25(1)

Provided that where a consumer declares that

the credit institution with which the payment account is

held has given notice in writing that the payment account

will be closed.";

(d) immediately after sub-regulation (4) thereof, there

shall be added the following new sub-regulation (4A)

"(4A) Credit institutions shall not refuse to open a

payment account with basic features on the basis of the

consumers’ financial circumstances, including their

employment status, level of income, credit history or

personal bankruptcy."; and

(e) in sub-regulation (6) thereof, for the words "the

Professional Secrecy Act and other provisions contained in any

other Maltese Law,", there shall be substituted the words, "the

Professional Secrecy Act, article 34 of the Banking Act and any

other relevant provisions contained in any other Maltese Law,",

and for the words "information provided by their prospective

consumers in terms of sub-regulation (5).", there shall be

substituted the words, "information provided in terms of sub-

regulation (5)."

In regulation 21 of the principal regulations, for the words

"ten business days from recorded receipt", there shall be substituted

the words, "ten business days from the recorded receipt".

For regulation 22 of the principal regulations there shall be

substituted the following

"22. (1)A credit institution shall refuse to open a payment

account with basic features for a consumer where to do so

would result in a breach of any anti-money laundering and

combating the funding of terrorism obligation arising from

applicable law or from any other enforceable procedure,

guidance or provision.

(2) Credit institutions shall consider whether there are

any grounds for the circumstances surrounding a refusal to

open a payment account with basic features as set out in sub-

regulation (1) to be disclosed to the Financial Intelligence

Analysis Unit in terms of applicable anti-money laundering

and combating the funding of terrorism legislation.".

Regulation 23 of the principal regulations shall be amended Amends

regulation 23 of

as follows

the principal

regulations.

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) Where an application for a payment account

with basic features is refused in accordance with

regulations 19(4) and 22, the credit institution shall, after

taking its decision, immediately inform the consumer in

writing and free of charge of the refusal and of the

specific reason for that refusal, unless such disclosure

would be contrary to objectives of national security,

public policy or would run counter to the obligations a

credit institution is under in terms of any applicable anti-

money laundering and combating the funding of

terrorism legislation."; and

(b) in sub-regulation (2) thereof, for the words

"submitting a complaint to it and provide details about the

consumer’s rights to lodge a complaint with the Office of the

Arbiter for Financial Services." there shall be substituted the

words, "submitting a complaint to it and of the consumer’s rights

to lodge a complaint with the Office of the Arbiter for Financial

Services and provide the relevant contact details.".

For regulation 25 of the principal regulations there shall be Substitutes

regulation 25 of

substituted the following

the principal

regulations.

"(1) A payment account with basic features shall include

the following services

(a) services enabling all the operations required for

the opening, operating, and closing of the payment account;

(b) services enabling funds to be placed in the

payment account;

(c) services enabling cash withdrawals from the

payment account within Malta and other Member States

(i) at the counter of the publicly accessible

premises of the credit institution, including any

branches thereof, whether located in Malta or in any

other Member State; and

(ii)

at automated teller machines;

(d) execution

of

the

following

payment

transactions in and outside Malta

(i) payment transactions through

the

payment card, including online payments;

(ii) credit transfers, including standing orders,

at, where available, terminals and counters and via

the online facilities of the credit institution;

(e)

execution of direct debits within the European

Union.

(2) The services listed in sub-regulation (1) shall be

offered by credit institutions to the extent that they already offer

them to consumers holding payment accounts other than a

payment account with basic features.".

For regulation 26 of the principal regulations, there shall be

substituted the following

Payment accounts with basic features shall

be

offered

at least in Euro. Such payment accounts may,

at the sole discretion of the credit institution, also be

offered in the currency of any other Member State.".

23. For regulation 27 of the principal regulations, there shall be

substituted the following

Credit institutions shall allow consumers to

execute an unlimited number of operations in relation

to the services linked to a payment account with basic

features as set out in regulation 25(1).".

24. For regulation 29 of the principal regulations, there shall be Substitutes

regulation 29 of

substituted the following

the principal

regulations.

Without prejudice to the requirements laid

down in the provisions of Directive 2008/48/EC as

transposed in the Consumer Credit Regulations, a

credit institution may, upon the consumer’s request,

provide an overdraft facility in relation to a payment

account with basic features

Provided that, access to, or use of, the

payment account with basic features shall not be

restricted by, or made conditional on, the purchase of

such an overdraft facility.".

25. For regulation 30 of the principal regulations there shall be Substitutes

regulation 30 of

substituted the following

the principal

regulations.

"(1) Credit institutions shall offer the services linked to a

payment account with basic features referred to in regulations 25

to 29 free of charge or for a reasonable fee, irrespective of the

number of operations executed on the payment account with

basic features.

(2) Credit institutions shall ensure that any fees charged

to the consumer for non-compliance with the consumer’s

commitments laid down in the framework contract are

reasonable.

(3) Credit institutions shall ensure that the reasonable

fees referred to in sub-regulations (1) and (2) are established

taking into account at least the following criteria

(a)

national income levels;

(b) average fees charged by other credit institutions

in Malta for services provided on payment accounts.".

26. Regulation 31 of the principal regulations, shall be Amends

regulation 31 of

amended as follows

the principal

regulations.

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) Without prejudice to sub-regulations (2)(a),

(3) and (4), framework contracts for the provision of a

payment account with basic features shall comply with

the provisions laid down in Maltese law transposing the

requirements of Directive 2007/64/EC.";

(b)

in sub-regulation (2) thereof

(i)

paragraph (a) thereof shall be amended as

follows

(a) in sub-paragraph (iv) thereof, for the

words, "Member State;", there shall be substituted the

words, "Member State; and";

(b) in sub-paragraph (v) thereof, for the

words, "regulation 25(1); and", there shall be

substituted the words, "regulation 25(1)."; and

(c)

sub-paragraph

(vi)

thereof

shall

be

deleted;

(ii) in paragraph (b) thereof, for the words

"prescribed by the Minister.", there shall be substituted the

words, "prescribed by the Minister

Provided that any additional limited and

specific cases as may be further prescribed by the Minister

shall, in terms of Article 19(3) of the Payment Accounts

Directive, be aimed at avoiding abuses by customers of

their right to access a payment account with basic

features.";

(c) in sub-regulation (3) thereof, for the words "with sub-

regulation (2)(a), (i) and (iii)", there shall be substituted the

words, "with sub-regulation (2)(a)(i) and (iii)";

(d) for sub-regulation (4) thereof, there shall be

substituted the following

"(4) Where a credit institution decides that it

should terminate a framework contract for a payment

account with basic features on one or more of the grounds

mentioned in sub-regulation (2)(a)(ii), (2)(a)(iv) or

(2)(a)(v), or in any additional limited and specific cases

as may be prescribed by the Minister in accordance with

sub-regulation (2)(b), the credit institution shall, unless

such disclosure would be contrary to objectives of

national security or public policy, inform the consumer of

the grounds and the justification for termination

(i) at least two months before the termination

enters into force;

(ii)

free of charge; and

(iii) in writing, by means of registered mail

and recorded delivery mail to the last known address

Provided that, if, after three attempts by

the credit institution to inform the consumer of such

termination in accordance with point (iii), such

attempts prove to be futile or are rejected by the

consumer, or if the consumer fails to act in terms of

the said notice, the payment service provider has

the right to terminate the framework contract within

ninety days from the date of the third notice.";

(e)

sub-regulation (6) thereof shall be deleted; and

(f) immediately after sub-regulation (7) thereof, there

shall be added the following new sub-regulation (8)

"(8) The credit institution shall keep proper

records of its decision for termination and any

notifications thereto.".

27. Regulation 32 of the principal regulations shall be amended Amends

regulation 32 of

the principal

regulations.

(a) in paragraph (c) of sub-regulation (1) thereof, for the

words "the Office of the Arbiter for Financial Services", there

shall be substituted the words, "the Office of the Arbiter for

Financial Services, and the relevant procedure to be followed,";

(b) in sub-regulation (4) thereof, for the words "shall

ensure that information and assistance provided in accordance

with sub-regulation (3) make it clear", there shall be substituted

the words, "shall ensure that the information and assistance

provided in accordance with sub-regulation (3) makes it clear".

28. Immediately after regulation 32 of the principal Addition of new

regulation 32A

regulations, there shall be added the following new regulation 32A

of the principal

regulations.

For the purposes of this Part, "branch" shall

have the same meaning as that assigned to it in article

2(1) of the Banking Act.".

29. For regulation 33 of the principal regulations, there shall be Substitutes

regulation 33 of

the principal

regulations.

substituted the following

" Competent

(1) The competent authority shall be fully

authority.

responsible for the application and enforcement of

these regulations.

(2) The competent authority shall be the single

contact point for the purpose of these regulations.".

30. Regulation 34 of the principal regulations shall be deleted.

31. Regulation 35 of the principal regulations shall be amended

as follows

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) Without prejudice to any powers and

duties of co-operation arising under the

Banking Act and the Financial Institutions Act,

the competent authority shall

(a) cooperate closely with European

regulatory authorities for the purpose of carrying

out their duties under the Payment Accounts

Directive;

(b) render

assistance

to

European

regulatory authorities, and in particular, exchange

information with such authorities and cooperate

in any investigation or supervisory activities;

(c) without undue delay, supply European

regulatory authorities designated as the single

contact point for the purposes of the Payment

Accounts Directive, with the information

required for the purpose of carrying out their

duties as set out in the measures adopted pursuant

to the Payment Accounts Directive

Provided that when exchanging

information with European regulatory authorities

in accordance with these regulations, the

competent authority may indicate, at the time of

communication, that the information being

exchanged must not be disclosed without its

express agreement.";

(b)

for sub-regulation (2) thereof, there shall be

substituted the following

"(2) Without prejudice to any powers and

duties of co-operation arising under the Banking

Act and the Financial Institutions Act, where the

competent authority receives information from a

European regulatory authority, and where such an

authority indicates to the competent authority, at

the time of communication, that such information

must not be disclosed without its express

agreement, the competent authority shall not

disclose any such information without the express

agreement of the European regulatory authority

providing the information. In such case, the

competent authority may exchange such

information solely for the purposes for which the

European regulatory authority disclosing the

information gave its agreement.";

(c) for sub-regulation (3) thereof, there shall be

substituted the following

"(3) Without prejudice to sub-regulation (2)

and to any powers and duties of co-operation

arising under the Banking Act and the Financial

Institutions Act, the competent authority may

transmit information received in accordance with

sub-regulation (2) to other European regulatory

authorities

Provided that, the competent authority

shall not, except in duly justified circumstances,

transmit the information received in accordance

with sub-regulation (2)

(a) to other bodies or natural or legal

persons without the express agreement of the

authority which disclosed the information;

(b) for purposes other than those for

which the authority disclosing the

information gave its consent

Provided further that, where the

competent authority, in duly justified

circumstances,

transmits

information

received in accordance with sub-regulation

(2) to other bodies or natural or legal persons

without the express agreement of the

European regulatory authority disclosing the

information, or for purposes other than those

for which the European regulatory authority

disclosing the information gave its consent,

the competent authority shall immediately

inform the contact point that supplied the

information.";

(d) in sub-regulation (4) thereof, for the words "in sub-

regulations (1)(c) and (3),", there shall be substituted the words,

"in sub-regulations (1) to (3),"; and

(e) in sub-regulation (5) thereof, for the words "sub-

regulation (2), the competent authority must notify", there shall

be substituted the words, "sub-regulation (4), the competent

authority shall notify".

32. In regulation 38 of the principal regulations, for the words

"may issue a directive", there shall be substituted the words, "may

issue, amend, or revoke a directive".

33. In sub-regulation (2) of regulation 39 of the principal

regulations, for the words "issues a directive to a payment service

provider under regulation 38, or issues a directive with immediate

effect,", there shall be substituted the words, "issues a directive to a

payment service provider under regulation 38,".

Regulation 40 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof, for the word "rules",

there shall be substituted the word "Rules"; and

(b) in sub-regulation (2) thereof, for the word "rules",

there shall be substituted the word "Rules".

Regulation 41 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof, for the words "under

these regulations.", there shall be substituted the words, "under

these regulations or any Rules issued thereunder."; and

(b) immediately after sub-regulation (1) thereof, there

shall be added the following new sub-regulation (1A)

"(1A) Any administrative penalty imposed on a

payment service provider in accordance with sub-

regulation (1) shall be effective, proportionate and

dissuasive.".

Regulation 42 of the principal regulations, shall be Amends

regulation 42 of

amended as follows

the principal

regulations.

(a) for sub-regulation (1) thereof, there shall be

substituted the following

"(1) The competent authority may publish on its

official website and in any other media as it considers

appropriate, any administrative penalty imposed in terms

of regulation 41, any directive issued in terms of

regulation 38, or any other administrative measure

imposed in terms of these regulations

Provided that in cases where an appeal has been

filed by the person on whom such administrative penalty or

measure has been imposed or against whom a directive has

been issued, the competent authority shall, without undue

delay, also publish on its official website and in any other

media as it considers appropriate, information on the status

of the appeal and the outcome thereof.";

(b) immediately after sub-regulation (1) thereof, there

shall be added the following new sub-regulation (1A)

"(1A) Publications referred to in this regulation shall

include

(i) the name of the payment service provider

upon which an administrative penalty has been

imposed;

(ii)

the provision or provisions breached; and

(iii) the administrative penalty imposed.";

(c) in sub-regulation (2) thereof, for the words "the

publication or issue of public statements or notices pursuant to

this regulation,", there shall be substituted the words, "any

publication pursuant to this regulation,"; and

(d) for sub-regulation (3) thereof, there shall be

substituted the following

"The competent authority shall withhold any public

disclosure referred to this regulation where it deems that

such disclosure would be of detriment to the interests of

consumers, seriously jeopardise the financial markets or

cause disproportionate damage to the parties involved.".

For regulation 45 of the principal regulations, there shall be

substituted the following

(1) The competent authority shall

provide the European Commission with information

on the following, for the first time by 18th September

2018 and thereafter at intervals not exceeding two

years

(a) compliance by payment service

providers with regulations 4, 7 to 10, and 12;

(b) compliance by the same competent

authority with the requirements of regulation 13;

(c) the number of payment accounts that

have been switched;

(d) the proportion of applications for

switching that have been refused;

(e) the number of credit institutions

offering payment accounts with basic features;

(f) the number of payment accounts with

basic features that have been opened and closed;

and

(g) the proportion of applications for

payment accounts with basic features that have

been refused.

(2) A payment service provider shall provide to

the competent authority any information which it may

reasonably require in order to fulfil its obligations

under sub-regulation (1).".

38. The First Schedule to the principal regulations shall be

amended as follows

(a) for paragraph 2 thereof, there shall be substituted the

following

"2. (a) The fee information document shall use

the standardised terms contained in the list of the most

representative services linked to a payment account

established pursuant to regulation 3, as may be amended

from time to time in accordance with regulation 6(1).

(b) Where the payment service provider offers any

service featured in the list of the most representative

services linked to a payment account, the corresponding fee

for that service shall also be quoted in the fee information

document.

(c) The fee information document shall also

include a list of penalties which may be incurred by the

consumer for the use of a payment account.";

(b) in paragraph 3 thereof, for the words "services

featured in the list of the most representative services linked to a

payment account are offered as part of a package of services,",

there shall be substituted the words "services are offered as part

of a package of services linked to a payment account,";

(c)

in paragraph 4 thereof

(i) for paragraph (a) thereof, there shall be

substituted the following

"(a) upon request by the consumer, be

provided on paper or another durable medium;";

(ii) for paragraph (e) thereof, there shall be

substituted the following

"(e) be written in English and, if requested by

the consumer, in Maltese or, in any other language

agreed upon by the consumer and the payment

service provider;"; and

(d) in paragraph 5 thereof, for the words

"pursuant to other EU", there shall be substituted the

words, "pursuant to other European Union", and for

the words "requirements in paragraph 4", there shall

be substituted the words, "requirements set out in

paragraph 4".

39. The Second Schedule to the principal regulations shall be Amends the

Second

amended as follows

Schedule to the

principal

regulations.

(a) in paragraph 1 thereof, for the words "by the

European Commission under Article 5(4) of the Payment

Accounts Directive.", there shall be substituted the words, "by

the European Commission in accordance with Article 5(4) of the

Payment Accounts Directive, as amended from time to time in

accordance with Article 5(5) of the same Directive.";

(b) in paragraph 2(ii) thereof, for the words "the terms set

out in the list of the most representative services linked to a

payment account;", there shall be substituted the words, "the

standardised terms set out in the list of the most representative

services linked to a payment account established pursuant to

regulation 3, as may be amended from time to time in accordance

with regulation 6(1);";

(c)

in paragraph 3 thereof

(i) for paragraph (c)(ii) thereof, there shall be

substituted the following

"(ii) each package of service provided; and";

(ii) in paragraph (f) thereof, for the words "during

the relevant period;", there shall be substituted the words,

"during the relevant period, where applicable;";

(iii) in paragraph (g) thereof, for the words "during

the relevant period; and", there shall be substituted the

words, "during the relevant period, where applicable; and";

(d) for paragraph 4 thereof, there shall be substituted the

following

"The statement of fees shall

(a) be presented and laid out in a way that is

clear and easy to read, using characters of a

reasonable size;

(b) contain the title ''Statement of Fees'' at the

top of the first page of the statement next to the

common symbol referred to in paragraph 1 to

distinguish the document from other documentation;

and

(c) be written in English and, if requested by

the consumer, in Maltese or, in any other language

agreed upon by the consumer and the payment

service provider."; and

(e)

immediately after paragraph 4 thereof as amended,

there shall be inserted the following new paragraph 5

"5. The statement of fees shall be provided together

with any information required pursuant to other European

Union or national legislation on payment accounts and

related services, provided that the requirements set out in

paragraphs 2(a)(iii) and 4 are met.".

40. The Third Schedule to the principal regulations shall be Amends the

Third Schedule

amended as follows

to the principal

regulations.

(a)

in paragraph 1 thereof

(i) for paragraph (b) thereof, there shall be

substituted the following

"(b) In the case of two or more holders of the

same account, the authorisation referred to in point

(a) shall be obtained from each of such holders.";

(ii) for paragraph (c) thereof, there shall be

substituted the following

"(c) The authorisation shall be drawn up in

Maltese or English and, if requested by the consumer,

in Maltese or, in any other language agreed upon by

the consumer and the payment service provider.";

(iii) in paragraph (e) thereof, for the words "in

accordance with sub-paragraph (d)(iv)", there shall be

substituted the words, "in accordance with point (d)(iv)";

(b)

in paragraph 3 thereof

(i) in paragraph (a) thereof, for the words "the

receiving service provider,", there shall be substituted the

words, "the receiving payment service provider,";

(c)

in paragraph 4 thereof

(i) in paragraph (a)(iv) thereof, for the words

"making recurrent incoming credit transfers", there shall be

substituted the words, "making recurring incoming credit

transfers";

(ii) in paragraph (a)(v) thereof, for the words "in

sub-paragraph (iv),", there shall be substituted the words,

"in point (iv),";

(iii) in paragraph (b) thereof, for the words "in sub-

paragraph (a)(iv) or (vi)", there shall be substituted the

words, "in points (a)(iv) or (vi)", and for the words "with

paragraph 2", there shall be substituted the words, "with

paragraph 1";

(iv) in paragraph (b)(ii) thereof, for the words "the

deadline referred to in paragraph (1)(d)(iv).", there shall be

substituted the words, "the deadline referred to in point

4(a).";

(d)

in paragraph 5 thereof

(i) in paragraph (a) thereof, for the words "to

details of any standing orders", there shall be substituted

the words, "to personal information regarding any existing

standing orders";

(ii) in paragraph (d) thereof, for the words "in sub-

paragraphs (a) to (c)", there shall be substituted the words,

"in points (a) to (c)";

(e)

in paragraph 6 thereof

(i) in paragraph (a) thereof, for the words "the

payment service provider shall reimburse", there shall be

substituted the words, "that payment service provider shall

reimburse";

(ii) in paragraph (b) thereof, for the words "in sub-

paragraph (a)", there shall be substituted the words, "in

point (a)"; and

(f) for paragraph 7 thereof, there shall be substituted the

following

" Information

7. (a) Payment service providers

about the

shall make available to consumers the

switching

following information about the switching

service.

service

(i) the roles of the transferring

and receiving payment service provider

for each step of the switching process as

provided for in this Schedule;

(ii) the

time-frames

for

completion of the respective steps;

(iii) any fees that shall be charged

for the switching process;

(iv) any information that the

consumer will be asked to provide;

(v) the

alternative

dispute

resolution procedures referred to in

regulation 44.

(b) The information referred to in

sub-paragraph (a) shall

(i) be made available free of

charge, on paper or another durable

medium, at all premises of the

payment service provider accessible

to consumers;

(ii) be available in electronic

form on the payment service

provider’s website at all times; and

(iii) be provided to consumers

upon request.

(c) Payment service providers shall

also make available such information

required pursuant to other European Union

or national legislation on payment

accounts and related services.".

€1.35