CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS (PAYMENT ACCOUNTS) REGULATIONS

SUBSIDIARY LEGISLATION 376.08

CREDIT INSTITUTIONS AND FINANCIAL

INSTITUTIONS (PAYMENT ACCOUNTS)

REGULATIONS

7th December, 2016;

18th June, 2017; *

31st October, 2018 †

LEGAL NOTICE 411 of 2016, as amended by Legal Notices 324 and 354

of 2018 and 33 of 2024.

(1) The title of these regulations is the Credit Institutions

and Financial Institutions (Payment Accounts) Regulations.

(2) The purpose of these regulations is to implement the

Payment Accounts Directive.

(3) These regulations lay down rules concerning the

transparency and comparability of fees charged to consumers on

their payment accounts held in Malta,rules concerning the switching

of payment accounts within Malta and rules to facilitate cross-border

payment account-opening for consumers.

(4) These regulations also define a framework for the rules and

conditions according to which Malta is required to guarantee a right

for consumers to open and use payment accounts with basic features

in Malta.

(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.

(6) ‡ 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.

(7) § 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.

Amended by

L.N. 324 of 2018.

[Regulation 8(2)]

Content and presentational format of the fee information document

Compliance with implementing technical standards

1. The fee information document shall comply with the requirements of any

implementing technical standards adopted by the European Commission in

accordance with Article 4(6) of the Payment Accounts Directive regarding a

standardised presentational format of the fee information document and its common

symbol, as amended from time to time in accordance with Article 4(7) of the same

Directive.

Content

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.

Packages of services

3. Where one or more services are offered as part of a package of services linked

to a payment account, the fee information document shall disclose

(a) the fee for the entire package;

(b) the services included in the package and their quantity; and

(c) the additional fee for any service that exceeds the quantity covered by

the package fee.

Presentational format

4. The fee information document shall

(a) upon request by the consumer, be provided on paper or another durable

medium;

(b) be a short and stand-alone document;

(c) be presented and laid out in a way that is clear and easy to read using

characters of a reasonable size;

(d) be no less comprehensible in the event that, having been originally

produced in colour, it is printed or photocopied in black and white;

(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;

(f)

be accurate, not misleading, and expressed in the currency of the

payment account or, if agreed by the consumer and the payment service

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

provider, in another currency of the European Union;

(g) contain the title ''Fee Information Document'' at the top of the first page

next to the common symbol referred to in paragraph 1 to distinguish the

fee information document from other documentation; and

(h) include a statement that it contains fees for the most representative

services linked to a payment account, any penalties which may be

incurred for the use of the payment account, and that complete pre-

contractual and contractual information on all the services is provided

in other documents.

5. The fee information document shall be provided together with the

information required pursuant to other European Union or national legislation on

payment accounts and related services, provided that all the requirements set out in

paragraph 4 are met.

(1) For the purposes of these regulations the following

definitions shall apply

''bundling'' means the offering of one or more ancillary service

* See regulation 1(6) of Legal Notice 411 of 2017.

† See Legal Notice 354 of 2018.

‡ Originally numbered as sub-regulation (7).

§ Originally numbered as sub-regulation (8).

with a payment account in a package, where the payment account

or the ancillary service may also be made available to the consumer

separately, but not necessarily on the same terms or conditions as

when offered bundled;

''business day'' means a day on which the relevant payment

service provider is open for business as required for the execution

of a payment transaction;

"Central Bank" shall have the same meaning as that assigned to it

in the Banking Act;

''Charter'' means the Charter of Fundamental Rights of the

European Union;

''combined account'' means a type of account which comprises a

payment account, an overdraft and a loan facility simultaneously;

''competent authority'' means the Malta Financial Services

Authority established by the Malta Financial Services Authority

Act;

''consumer'' means any natural person who is acting for purposes

which are outside his trade, business, craft or profession;

''credit institution'' has the same meaning as is assigned to the

term in the Banking Act;

''credit interest rate'' means any rate at which interest is paid to

the consumer in respect of funds held in a payment account;

''credit transfer'' means a national payment service or a cross-

border payment service in and outside Malta, for crediting a payee’s

payment account with a payment transaction or a series of payment

transactions from a payer ’s payment account by the payment

service provider which holds the payer’s payment account, based

on an instruction given by the payer;

''creditor-driven direct debit '' means a payment service for

debiting a consumer ’s payment account where the creditor,

following receipt of the direct debit mandate from the consumer,

will be responsible for the storing of such mandate whilst also

initiating the payment transaction. The payment service provider

does not receive any m andate related infor mation from the

consum er and nor is responsible for the verification of the

creditor’s right to collect payment;

''debtor-driven direct debit '' means a payment service for

d e b i t i n g a c o n s u m e r ’s p a y m e n t a c c o u n t w h e r e a p a y m e n t

transaction is initiated by the creditor informing the payer ’s

payment service provider of the consumer ’s intention to make

payments by direct debit. The mandate issued by the payment

service provider following the payer’s authorisation for a direct

debit collection stays with the same payment service provider.

When the creditor presents a direct debit collection to the payment

service provider, the latter may choose to obtain the creditor ’s

authorisation to collect payment based on the mandate;

''direct debit'' means a national payment service or a cross-border

payment service in and outside Malta,for debiting a payer’s payment

account, where a payment transaction is initiated by the payee on

the basis of the payer’s consent;

''Directive 2007/64/EC '' means Directive 2007/64/EC of the

European Parliament and of the Council of 13 November 2007 on

payment services in the internal market amending Directives 97/7/

EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing

Directive 97/5/EC, as amended from time to time, and includes any

implementing measures, implementing technical standards,

regulatory technical standards, guidelines and similar measures that

have been or may be issued thereunder;

''Directive 2008/48/EC '' means Directive 2008/48/EC of the

European Parliament and of the Council of 23 April 2008 on credit

agreements for consumers and repealing Council Directive 87/102/

EEC, as amended from time to time, and includes any

implementing measures that have been or may be issued

thereunder;

"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;

''durable medium '' means any instrument which enables the

consumer to store information addressed personally to that

consumer in a way accessible for future reference for a period of

time adequate for the purposes of the information and which allows

the unchanged reproduction of the information stored;

''electronic money'' has the same meaning as that assigned to the

term in the Third Schedule of the Financial Institutions Act;

''EBA '' means the European Banking Authority established by

Regulation (EU) No 1093/2010;

''EEA State '' means a State which is a contracting party to the

agreement on the European Economic Area signed at Oporto on the

2nd May 1992, as amended by the protocol signed at Brussels on

17th March 1993, and as amended by any subsequent acts;

''EU standardised terminology '' means the terms set out in any

regulatory technical standards adopted by the European

Commission in accordance with Article 3(4) of the Payment Accounts

Directive;

"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;

''European Union '' or ''EU '' means the European Union as

defined in article 2 of the European Union Act;

''fees'' means all charges, tariffs, and penalties, if any, payable by

the consumer to the payment service provider for or in relation to

services linked to a payment account;

''fee information document'' means the fee information document

referred to in regulation 8;

"Financial Intelligence Analysis Unit" means the Financial

Intelligence Analysis Unit established by the Prevention of Money

Laundering Act;

''framework contract '' means a payment service contract which

governs the future execution of individual and successive payment

transactions and which may contain the obligation and conditions

for setting up a payment account;

"funding of terrorism" has the same meaning as is assigned to it

by the Prevention of Money Laundering Act;

''funds '' means banknotes and coins, scriptural money and

electronic money as defined in the Financial Institutions Act;

''legally resident in Malta or in another Member State '' means

where a natural person has the right to reside in Malta or in another

Member State by virtue of EU or national law, including consumers

with no fixed address and persons seeking asylum under the

Geneva Convention of 28 July 1951 relating to the Status of

Refugees, the Protocol thereto of 31 January 1967 and other

relevant international treaties;

''Member State '' means a Member State of the European Union

and includes an EEA State;

''Minister '' means the Minister responsible for the regulation of

Financial Services;

"money laundering" has the same meaning as is assigned to it by the

Prevention of Money Laundering Act;

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

of the Arbiter for Financial Services as established under article 10

of the Arbiter for Financial Services Act;

''overdraft facility'' means an explicit credit agreement whereby

a payment service provider makes available to a consumer funds

which exceed the current balance in the consumer ’s payment

account;

''overrunning '' means a tacitly accepted overdraft whereby a

payment service provider makes available to a consumer funds

which exceed the current balance in the consumer ’s payment

account or the agreed overdraft facility;

''payee '' means a natural or legal person who is the intended

recipient of funds which have been the subject of a payment

transaction;

''payer '' means a natural or legal person who holds a payment

account and allows a payment order from that payment account or,

where there is no payer ’s payment account, a natural or legal

person who makes a payment order to a payee’s payment account;

''payment account'' means an account held in the name of one or

more consumers which is used for the execution of payment

transactions;

''Payment Accounts Directive '' means Directive 2014/92/EU of

the European Parliament and of the Council of 23 July 2014 on the

comparability of fees related to payment accounts, payment

account switching and access to payment accounts with basic

features, as amended from time to time, and includes any

implementing measures, implementing technical standards,

regulatory technical standards, guidelines and similar measures that

have been or may be issued thereunder;

"payment instrument" has the same meaning as that assigned to it in

the Financial Institutions Act;";

''payment order'' means any instruction by a payer or payee to his

payment service provider requesting the execution of a payment

transaction;

''payment service'' has the same meaning as that assigned to it in

the Financial Institutions Act;

''payment service provider'' 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;

Member States or their regional or local authorities

(f)

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;";

''payment transaction'' means an act, initiated by the payer or by

the payee, of placing, transferring or withdrawing funds,

irrespective of any underlying obligations between the payer and

the payee;

''prescribed '' means prescribed by regulations made under the

Banking Act or the Financial Institutions Act;

''receiving payment service provider'' means the payment service

p r o v i d e r t o wh i c h t h e in f o r m a t i o n r e q u ir e d t o p e r f o r m t he

switching is transferred;

''Regulation (EU) No 1093/2010 '' means Regulation (EU) No

1093/2010 of the European Parliament and of the Council of 24

November 2010 establishing a European Supervisory Authority

(European Banking Authority), amending Decision No 716/2009/

EC and repealing Commission Decision 2009/78/EC, as amended

from time to time, and includes any implementing measures that

have been or may be issued thereunder;

''relevant period'' means the period to which the statement of fees

relate;

''services linked to the payment account '' means all services

related to the opening, operating and closing of a payment account,

including payment services and payment transactions falling within

the scope of point (g) of Article 3 of Directive 2007/64/EC,

overdraft facilities and overrunning;

''standing order '' means an instruction given by the payer to the

payment service provider which holds the payer’s payment account

to execute credit transfers at regular intervals or on predetermined

dates;

''statement of fees '' means the statement of fees referred to in

regulation 10;

''switching '' or ''switching service '' means, upon a consumer’s

request, transferring from one payment service provider to another

either the information about all or some standing orders for credit

transfers, recurring direct debits and recurring incoming credit

transfers executed on a payment account, or any positive payment

account balance from one payment account to the other, or both,

with or without closing the former payment account;

''transferring payment service provider '' means the payment

service provider from which the information required to perform

the switching is transferred;

''Tribunal'' means the Financial Services Tribunal as established

under the Malta Financial Services Authority Act.

(2)

For the purpose of these regulations

(a) combined accounts and payment accounts holding

electronic money shall not be deemed to be payment

accounts, unless such types of accounts are used for

day-to-day payment transactions; and

(b) the Central Bank shall not be deemed to be a payment

service provider.

PART 2

Comparability of fees connected with payment accounts

Amended by

L.N. 324 of 2018.

[Regulation 10(3)]

Content and presentational format of the statement of fees

Compliance with implementing technical standards

1. The statement of fees shall comply with the requirements of any

implementing technical standards regarding a standardised presentational format of

the statement of fees and its common symbol adopted 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.

Content

2. (a) The statement of fees shall

(i) state all fees incurred during the relevant period for services

linked to a payment account;

(ii) where applicable, use 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

(iii) be accurate, not misleading, and expressed in the currency of the

payment account or, if agreed by the consumer and the payment

service provider, in another currency.

(b) The statement of fees shall also include all penalties incurred related to

the use of a payment account.

Mandatory information

3. The statement of fees shall specify at least the following information

(a) the unit fee charged for each service and the number of times the service

was used during the relevant period;

(b) where the services are combined in a package

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

(i) the fee charged for the package as a whole;

(ii) the number of times the package fee was charged during the

relevant period; and

(iii) the additional fee charged for any service exceeding the quantity

covered by the package fee;

(c) the total amount of fees incurred during the relevant period for

(i) each service;

(ii) each package of service provided; and

(iii) services exceeding the quantity covered by the package fee;

(d) the overdraft facility interest rate or rates applied to the payment

account during the relevant period, where applicable;

(e) the total amount of interest charged relating to the overdraft facility

during the relevant period, where applicable;

(f)

the credit interest rate or rates applied to the payment account during the

relevant period, where applicable;

(g) the total amount of interest earnedduring the relevant period, where

applicable; and

(h) the total amount of fees charged for all services provided during the

relevant period.

Presentational format

4. (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.

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

(1) Following adoption by the European Commission of

r e g u l a t o r y t e c h n i c a l s t a n d ar d s s e t t i n g o u t EU standardised

terminology in accordance with Article 3(4) of the Payment Accounts

Directive, the competent authority shall without delay, and at the

latest within three months of entry into force of the EU

standardised terminology, publish a list of the most representative

services linked to a payment account and subject to a fee.

(2) The list of the most representative services linked to a

payment account shall

(a) feature at least 10 and no more than 20 of the most

representative services linked to a payment account

and subject to a fee, offered by at least one payment

service provider in Malta;

(b) contain terms and definitions for each of the services

identified;

(c) include only one term for each service in both Maltese

and English;

(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.

Amended by

L.N. 324 of 2018.

[Regulation 15(2)]

Switching service

Authorisation

1. (a) The receiving payment service provider shall perform the switching

service upon receipt of the authorisation from the consumer, which shall

be in such form as may be suggested by the receiving payment service

provider.

(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.

(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.

(d) The authorisation shall allow the consumer to

(i)

provide specific consent to the performance by the transferring

payment service provider of each of the tasks set out in paragraph

2 (a) to (f);

(ii) provide specific consent to the performance by the receiving

payment service provider of each of the tasks referred to in

paragraph 4(a)(i) to (vii);

(iii) specifically identify incoming credit transfers, standing orders for

credit transfers and direct debit mandates that are to be switched;

and

(iv) specify the date from which standing orders for credit transfers

and direct debits are to be executed from the payment account

opened or held with the receiving payment service provider.

(e) The date specified in accordance with point (d)(iv) shall be at least six

business days after the date on which the receiving payment service

provider receives the documents transferred from the transferring

payment service provider in accordance with paragraph 3(a)(i).

(f)

The receiving payment service provider shall require the authorisation

from the consumer to be in writing and that a copy of the authorisation

be provided to the consumer.

Request from the receiving payment service provider

2. Within two business days from receipt of the authorisation referred to in

paragraph 1, the receiving payment service provider shall request that the

transferring payment service provider carry out each of the following tasks, if

provided for in the consumer’s authorisation

(a) transmission to the receiving payment service provider and, if

specifically requested by the consumer, to the consumer, of a list of the

existing standing orders for credit transfers and available information

on direct debit mandates that are being switched;

(b) transmission to the receiving payment service provider and, if

specifically requested by the consumer, to the consumer, of the

available information about recurring incoming credit transfers and

creditor-driven direct debits executed on the consumer’s payment

account during the previous thirteen months;

(c) where the transferring payment service provider does not provide a

system for automated redirection of the incoming credit transfers and

direct debits to the payment account held by the consumer with the

receiving payment service provider, stop accepting direct debits and

incoming credit transfers with effect from the date specified in the

authorisation;

(d) cancellation of standing orders with effect from the date specified in the

authorisation;

(e) transfer of any remaining positive balance to the payment account

opened or held with the receiving payment service provider on the date

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

specified by the consumer; and

(f)

closure of the account held by the consumer with the transferring

payment service provider on the date specified by the consumer.

Tasks for the transferring payment service provider

3. (a) Upon receipt of a request from the receiving payment service provider, the

transferring payment service provider shall carry out the following

tasks, if provided for in the consumer’s authorisation

(i) send the information described in paragraphs (2)(a) and (b) to the

receiving payment service provider within five business days;

(ii) where the transferring payment service provider does not provide

a system for automated redirection of incoming credit transfers

and direct debits to the payment account held or opened by the

consumer with the receiving payment service provider, stop

accepting incoming credit transfers and direct debits on the

payment account with effect from the date specified in the

authorisation;

(iii) cancel standing orders from the date specified in the

authorisation;

(iv) transfer any remaining positive balance from the payment account

to the payment account opened or held with the receiving payment

service provider on the date specified in the authorisation;

(v) without prejudice to Article 45(1) and (6) of Directive 2007/64/

EC, close the payment account on the date specified in the

authorisation if the consumer has no outstanding obligations on

that payment account and the actions described in sub-paragraphs

(i), (ii), and (iv) have been completed.

(b) Where any outstanding obligations on the payment account prevent

closure of the account in accordance with sub-paragraph (a)(v), the

transferring payment service provider shall immediately inform the

consumer that this is the case.

(c) Where the transferring payment service provider stops accepting

incoming credit transfers and direct debits in accordance with sub-

paragraph (a)(ii), it shall inform the payer and the payee in writing and

within five business days, of the reason for not completing the payment

transaction.

Tasks for the receiving payment service provider

4. (a) Within five business days of receipt of the information requested from

the transferring payment service provider as referred to in paragraph 2,

the receiving payment service provider shall, if provided for in the

authorisation and to the extent that the information provided by the

transferring payment service provider or the consumer enables the

receiving payment service provider to do so, carry out the following

tasks

(i) set up the standing orders for credit transfers requested by the

consumer and execute them with effect from the date specified in

the authorisation;

(ii) make any necessary preparations to accept direct debits and

accept them with effect from the date specified in the

authorisation;

(iii) where relevant, inform consumers of their rights in accordance

with Article 5(3)(d) of Regulation (EU) 260/2012 which

establishes technical and business requirements for credit

transfers and direct debits in euro;

(iv) inform payers specified in the authorisation and making recurring

incoming credit transfers into a consumer’s payment account of the

details of the consumer’s payment account with the receiving

payment service provider and transmit to such payers a copy of

the consumer’s authorisation;

(v) where the receiving payment service provider does not have all

the information it needs to complete the task referred to in point

(iv), ask the consumer or the transferring payment service

provider to provide the missing information;

(vi) inform payees specified in the authorisation and using a direct

debit to collect funds from the consumer’s payment account of the

details of the consumer’s payment account with the receiving

payment service provider and the date from which direct debits

are to be collected from that payment account and transmit to

such payees a copy of the consumer’s authorisation;

(vii)

where the receiving payment service provider does not have all

the information that it needs to inform the payees, it shall ask the

consumer or the transferring payment service provider to provide

the missing information.

(b) Where the consumer chooses to personally provide the information

referred to in points (a)(iv) or (vi) to the payers or payees rather than

provide specific consent in accordance with paragraph 1 allowing the

receiving payment service provider to do so, the receiving payment

service provider shall provide the consumer with standard letters

providing details of

(i) the payment account; and

(ii) the starting date specified in the authorisation within the deadline

referred to in point 4(a).

(c) Any requirements imposed on the receiving payment service provider

shall start to apply when such payment service provider has all

information and documentation necessary to discharge its duties under

this section.

(d) Without prejudice to Article 55(2) of Directive 2007/64/EC, the

transferring payment service provider shall not block any payment

instrument before the date specified in the consumer’s authorisation, so

that the provision of payment services to the consumer is not interrupted

in the course of the provision of the switching service.

Fees connected with the switching service

5. (a) Transferring and receiving payment service providers shall provide the

consumer with access, free of charge, to personal information regarding

any existing standing orders and direct debits applicable to the accounts

the consumer holds with them.

(b) The transferring payment service provider shall not charge the

consumer or the receiving payment service provider for the provision of

information requested from it by the receiving payment service provider

in accordance with paragraphs 2(a) and (b).

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

(c) Any fee payable by the consumer applied by the transferring payment

service provider in respect of the termination of the framework contract

for the payment account held with the transferring payment service

provider shall be determined in accordance with Article 45(2), (4) and

(6) of Directive 2007/64/EC.

(d) Transferring or receiving payment service providers may charge the

consumer a fee for any service referred to in paragraphs 2 to 4 - other

than those referred to in points (a) to (c) of this paragraph - provided that

any such fee is

(i) reasonable; and

(ii) in line with the actual costs to the payment service provider of

providing the relevant service.

Financial loss for consumers

6. (a) Subject to sub-paragraph (b), where a consumer suffers any financial

loss, as a direct result of the non-compliance of a payment service

provider with any requirement provided for in paragraphs 2 to 4, that

payment service provider shall reimburse the full extent of the loss,

including charges and interest, without delay.

(b) The duty to reimburse provided forin point (a) shall not apply in the case

of unavoidable losses arising as a result of

(i)

abnormal and unforeseeable circumstances beyond the control of

the payment service provider pleading for the application of those

circumstances, the consequences of which would have been

unavoidable despite all efforts to the contrary; or

(ii) the payment service provider’s compliance with other legal

obligations pursuant to other European Union or national

legislative acts.

Information about the switching service

7. (a)

Payment service providers shall make available to consumers the

following information about the switching 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

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

required pursuant to other European Union or national legislation on payment

accounts and related services.

Where applicable, a payment service provider shall use the

standardised terminology set out in the list of the most representative

services linked to a payment account in its contractual, commercial

and marketing information.

(1) Every four years, following publication of the list

referred to in regulation 3(1), the competent authority shall assess,

and where appropriate, update the list of the most representative

services established pursuant to regulation 3.

(2) The competent authority shall notify to the European

Commission and to EBA the outcome of its assessment and, where

a p p l i c a b l e , p r o v i d e t h e m with the updated list of the most

representative services.

(1) Upon the European Commission adopting any change

to the regulatory technical standards setting out the EU

standardised terminology, 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.

(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).

(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.

(2) The glossary shall be available in English and Maltese and in

any other language agreed upon by the payment service provider and

the consumer.

(3) The glossary referred to in sub-regulation (1), including other

definitions, if any,shall be in a clear, unambiguous and non-

technical language and shall not be misleading.

(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.

(2) The fee information document shall meet the requirements

set out in Schedule 1.

(1) A payment service provider shall ensure that the fee

information document and the glossary are

(a) made available to consumers at any time;

(b) provided in an easily accessible manner, including to

the general public

(i) in electronic form on the payment service

provider’s websites where available; and

(ii) made accessible to consumers in the premises of

the payment service provider.

(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.

(1) Without prejudice to Articles 47 and 48 of Directive

2007/64/EC and Article 12 of Directive 2008/48/EC, a payment

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

charge, with a statement of fees.

(2) The method of communication used to provide the

statement of fees shall be agreed with the consumer and, upon the

request of the consumer, the statement of fees shall be provided on

paper, free of charge.

(3) The statement of fees shall meet the requirements set out in

Schedule 2.

For the avoidance of doubt, the provisions of these

regulations relating to the statement of fees and the fee information

document shall apply mutatis mutandis in regard to payment

accounts with basic features.

(1) A payment service provider may use brand names to

designate its services in its contractual, commercial and marketing

information to consumers, provided that it clearly identifies, where

applicable, the corresponding 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).

(2) A payment service provider may use brand names in the fee

information document and the statement of fees, 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), an d as a seco nd ary

designation of those services.

(1) The competent authority shall provide consumers with

access, free of charge, to 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).

(2)

The comparison website referred to in sub-regulation (1) shall

(a) be operationally independent by ensuring that payment

service providers are given equal treatment in search

results;

(b) clearly disclose that it is compiled by the competent

authority on the basis of information provided by

payment service providers;

(c) set out clear, objective criteria on which the

comparison will be based;

(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);

(e) provide accurate and up to date information and state

the time of the last update;

(f)

include a broad range of payment accounts offered by

payment service providers, covering a significant part

of the market and, where the information presented is not

a complete overview of the market, a clear statement to

that effect should be made before displaying results;

and

(g) provide an effective procedure to report incorrect

information on published fees.

(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).

(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.

(4) The competent authority shall publish online a list of the

websites which comply with this regulation.

(1) Where a payment account is offered as part of a

package with another product or service which is not linked to a

payment account, the payment service provider shall inform the

consumer whether it is possible to purchase the payment account

separately from such product or service.

(2)

Where a payment service provider informs the consumer in

accordance with sub-regulation (1) that it is possible to purchase

the payment account separately, the payment service provider shall

additionally provide the consumer with separate information

regarding the costs and fees associated with each of the other

products and services offered in the package that can be purchased

separately.

(3) Where a payment service provider does not offer such other

products and services separately from the payment account, the

payment service provider may unbundle any of such products and

services from the package. In such case, the payment service

provi der shall provide separate in form ation, inclu ding any

applicable costs and fees, on the payment account as well as on the

packaged payment account.

PART 3

Switching

(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.

(2) A switching service shall be initiated by the receiving

payment service provider at the request of the consumer and shall

meet the requirements set out in Schedule 3.

(1) Where a consumer indicates to a payment service

provider located in Malta with whom that consumer holds a

payment account that the consumer wishes to open a payment

account 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

(a) provide the consumer, free of charge, with

(i) a list of all currently active standing orders for

credit transfers and debtor-driven direct debit

mandates, where available; and

(ii) available information about recurring incoming

credit transfers and creditor-driven direct debits

executed on the consumer’s payment account in

the previous thirteen months

Provided that this shall not entail any obligation on the

part of the payment service provider located in another

Member State with which the consumer wishes to open

a payment account, to set up services that it does not

provide;

(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

(c) close the payment account held by the consumer.

(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.

(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.

(4) Where outstanding obligations prevent the Maltese

payment service provider from closing the payment account in

accordance with sub-regulation (1)(c), it shall immediately inform

the consumer.

(5) For the purpose of this regulation, ''Maltese payment

service provider'' means a payment service provider located in

Malta with whom the consumer holds a payment account.

PART 4

Access to payment accounts

(1) A credit institution shall not discriminate against

consumers legally resident in Malta or in another Member State by

reason of their nationality or place of residence or by reason of any

other ground referred to in Article 21 of the Charter, the Equality

for Men and Women Act and in other provisions contained in any

other Maltese law as may be in force and amended from time to

time, when those consumers apply for, or access, a payment

account.

(2) The conditions applicable to holding a payment account

with basic features within the meaning of regulation 25 shall be in

no way discriminatory.

(1) Credit institutions with a branch network in Malta

having five or more branches shall offer a payment account with

basic features and may also offer online accounts with the same

basic features. Access to such payment account with basic features

shall be provided through the entire branch network of the credit

institution concerned. The competent authority shall ensure that

payment accounts with basic features are not only offered by credit

institutions that provide payment accounts with solely online

facilities.

(2) Credit institutions with a network of four branches or less

may also offer payment account with basic features

Provided that in such case the provisions of Part 4 of these

regulations shall apply to such credit institutions mutatis mutandis.

(3) It shall be the duty of the competent authority to prevent

distortions of competition in regard to the manner in which credit

institutions grant access to payment account with basic features,

and to take action thereupon.

(1) Consumers legally resident in Malta or in another

Member State shall be eligible to open and use a payment account with

basic features.

(2) Such a right to open and use a payment account with basic

features as indicated in sub-regulation (1) shall apply irrespective

of the consumer’s place of residence.

(3) For the purposes of sub-regulation (1), consumers legally

resident in Malta or in another Member State shall include

(a) consumers with no fixed address;

(b) persons who may be granted any status as promulgated

under the International Protection Act or any other

national legislation, where such persons may include

refugees, beneficiaries of subsidiary protection and, or

beneficiaries of other forms of humanitarian or

international protection, stateless persons, asylum

seekers and failed or rejected asylum seekers;

(c) consumers who have not been granted a residence

permit but whose expulsion is impossible for legal or

factual reasons; and

(d) consumers whose status is not covered under

paragraphs (a) to (c) but whose expulsion is

impossible for legal or factual reasons.

(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.

(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.

(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.

(5) Before opening a payment account with basic features, a

credit institution may verify whether the consumer holds or does

not hold, with a credit institution located in Malta, a payment

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

A credit institution may otherwise choose to rely on and accept a

declaration of honour signed by the consumer for that purpose.

(6) Notwithstanding the provisions of the the Professional

Secrecy Act, article 34 of the Banking Act and any other relevant

provisions contained in any other Maltese Law, credit institutions in

Malta may, subject to the express written consent of the consumer

to this effect, exchange information with other credit institutions

which is reasonably required for the purpose of verifying the

information provided in terms of sub-regulation (5).

(7) Credit institutions shall not introduce or implement any

policies or procedures which may directly or indirectly impose any

unnecessary, difficult, or burdensome restrictions or processes to

dissuade the consumer from exercising such rights as they arise

under this regulation.

Credit institutions offering a payment account with basic

features shall provide detailed information about the application

process for the opening of a payment account with basic features.

Such information shall include an application form, as well as a list

of any documents required to be submitted with the application.

Such information shall be made available online on the credit

institution’s website and, if so requested by the consumer, on a

durable medium, free of charge. It shall be the duty of the credit

institution to keep such information updated at all times.

Where an application for a payment account with basic

features is made by a consumer to a credit institution, the credit

institution shall open or refuse to open the account without undue

delay, and no later than ten business days from recorded receipt of

the completed application.

(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.

(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.

(2) Where notification of the reason for refusal is given in

accordance with sub-regulation (1), the credit institution shall

advise the consumer of the following

(a) the procedure for submitting a complaint to it against

the refusal;

(b) the possibility to contact the competent authority and

provide the relevant contact details; and

(c) the right to file a complaint with the Office of the

Arbiter for Financial Services and provide the relevant

contact details.

A credit institution shall ensure that access to and operation

of a payment account with basic features is not made conditional on

the purchase of any additional services or of shares in the credit

institution, unless the latter is conditional for all customers of the

credit institution.

(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.

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.

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).

A credit institution shall allow consumers to manage and

initiate payment transactions from the consumer’s payment account

with basic features

(a) at its publicly accessible premises; and

(b) via online facilities, where available.

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.

(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.

(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.

(2)

(a) Without prejudice to any other law, a credit institution

may only unilaterally terminate a framework contract

for the provision of a payment account with basic

features where at least one of the following conditions

is met

(i)

the consumer has deliberately used the payment

account for illegal purposes;

(ii) there has been no transaction on the account,

save for any interest debited or credited from the

account, for more than twenty-four consecutive

months;

(iii) the consumer provided incorrect information

when applying for the payment account with

basic features, and had the correct information

been provided, the application would have been

refused;

(iv) the consumer is no longer legally resident in

Malta or in another Member State; and

(v) the consumer has subsequently opened a second

payment account in Malta which allows for the

use of the services listed in regulation 25(1).

(b) Additional limited and specific cases where a

framework contract for a payment account with basic

features may be unilaterally terminated by credit

institutions may be identified and further 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.

(3) Any termination in accordance with sub-regulation (2)(a)

(i) and (iii) shall have immediate effect.

(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

f u t i l e o r a r e r e j e c t e d b y t h e c o n s u m e r, o r i f t h e

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.

(5) 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)(i) or

(iii), the credit institution shall, upon termination of the framework

contract, inform the consumer of the grounds and the justification

for termination in writing, by means of registered mail and

recorded delivery mail to the last known address.

(6)

Deleted by Legal Notice 324 of 2018.

(7) Any notification given by the credit institution under sub-

regulation (4) shall advise the consumer of

(a) the procedure for submitting a complaint to it against

the termination, if any;

(b) the possibility to contact the competent authority and

provide the relevant contact details; and

(c) the right to file a complaint with the Office of the Arbiter

for Financial Services and provide the relevant contact

details.

(8) The credit institution shall keep proper records of its

decision for termination and any notifications thereto.

(1) The competent authority shall raise awareness among

the public about

(a) the availability of payment accounts with basic

features and their general pricing conditions;

(b) the procedures to be followed in order to exercise the

right to access a payment account with basic features;

and

(c) the consumer’s right to complain to the Office of the

Office of the Arbiter for Financial Services, and the

relevant procedure to be followed, where the consumer

considers that a credit institution has not complied

with the requirements of these regulations.

(2) The competent authority shall employ sufficient and well-

targeted communication media for the purposes of its obligations

arising from sub-regulation (1), particularly reaching out to the

unbanked, vulnerable and mobile consumers.

(3) Credit institutions shall make available to consumers, free

of charge, accessible information and assistance about

(a) the specific features of the payment account with basic

features on offer; and

(b) the associated fees and conditions of use.

(4) Credit institutions shall ensure that the information and

assistance provided in accordance with sub-regulation (3) makes it

clear that the purchase of additional services is not compulsory in

order to access a payment account with basic features.

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.

PART 5

The Competent Authority

(1) The competent authority shall be fully 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."

Deleted by Legal Notice 324 of 2018.

(1)Without prejudice to any powers and duties of co-

op erati o n arisi ng u nd er t he B ank in g A ct an d th e Fi na nci al

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.

(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.

(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.

(4) The competent authority may refuse to act on a request for

cooperation in carrying out an investigation or supervisory activity,

or to exchange information as provided for in sub-regulations (1) to

(3), only where

(a) such an investigation, on-the-spot verification,

supervisory activity or exchange of information might

adversely affect the sovereignty, security or public

policy of Malta;

(b) judicial proceedings have already been initiated in

Malta in respect of the same actions and the same

persons;

(c) final judgement in respect of the same persons and the

same actions has already been delivered in Malta.

(5) In the event of refusal in terms of sub-regulation (4), the

competent authority shall notify the requesting authority accordingly

whilst providing as detailed information as possible.

(1) The competent authority may refer the situation to the

EBA where a request for cooperation, in particular, the exchange of

information, has been rejected or has not been acted upon within a

reasonable time, and may request EBA’s assistance in accordance

with Article 19 of Regulation (EU) No 1093/2010.

(2) Any binding decision made by EBA in accordance with

Article 19 of Regulation (EU) No 1093/2010 further to a referral by

the competent authority in accordance with sub-regulation (1), or to

a referral by an authority of another Member State in accordance

with Article 23 of the Payment Accounts Directive, shall be

binding on the competent authority.

(1) A payment service provider shall give the competent

authority such information in respect of its compliance with the

requirements imposed on it by these regulations as the competent

authority may direct.

(2) Information required under this regulation shall be given at

such times and in such form, and verified in such manner, as the

competent authority may direct.

(1) The competent authority may issue, amend, or revoke a

directive to a payment service provider to take such steps as are

necessary for the purposes of securing compliance with the

requirements as set out in these regulations.

(2) A directive under sub-regulation (1) may, in particular,

require the payment service provider to

(a) take specified action;

(b) refrain from taking specified action;

(c) review or take remedial action in respect of past

conduct.

(3) A payment service provider to which a directive under sub-

regulation (1) is given shall comply with the directive.

(1) A directive given under regulation 38(1) shall take

effect

(a) immediately, if the notice given under sub-regulation

(3) states that this is the case; or

(b) on such date as may be specified in the notice.

(2) If the competent authority issues a directive to a payment

service provider under regulation 38, it shall give the payment

service provider written notice.

(3)

The notice referred to in sub-regulation (2) shall

(a) give details of the directive;

(b) state the competent authority’s reasons for giving the

directive;

(c) inform the payment service provider by when to

implement and, or be compliant with the directive; and

(d) inform the payment service provider of the right to

refer a matter to the Tribunal in accordance with

regulation 43.

(1) The competent authority may issue Rules to payment

service providers for the purpose of these regulations.

(2) Such Rules may contain such incidental, supplementary and

consequential provisions as appear to the competent authority to be

expedient for the purpose of these regulations.

(1) Without prejudice to any other provision of these

regulations, the competent authority may impose an administrative

penalty not exceeding one hundred and fifty thousand euro

(€150,000) on a payment service provider that has contravened a

requirement imposed upon it by or under these regulations or any

Rules issued thereunder.

(1A) Any administrative penalty imposed on a payment service

provider in accordance with sub-regulation (1) shall be effective,

proportionate and dissuasive.

(2) Where an administrative penalty has been imposed by the

competent authority in terms of this regulation, an appeal shall lie

to the Tribunal in accordance with regulation 43.

(3) Where the competent authority decides to impose an

administrative penalty, it shall notify the person on whom the

penalty is being imposed by means of a notice in writing.

(4) Where the person upon whom the notice referred to in sub-

regulation (3) is served

(a) fails to pay to the competent authority the amount of

the penalty within a period of thirty days of the service

of the notice, and fails to appeal from the decision of

the competent authority to the Financial Services

Tribunal; or

(b) appeals to the Financial Service Tribunal and fails

within a period of fifteen days from the decision of the

Tribunal to pay the administrative penalty as

confirmed or as reduced by that Tribunal,

then, in every case, the amount of the administrative penalty, as

originally imposed or as reduced, as the case may be, shall be due

to the competent authority as a civil debt, and the provisions of

sub-regulation (5) shall apply.

(5) A notice as is referred to in sub-regulation (3), or the

decision of the Financial Services Tribunal, as the case may be,

shall, upon the service by judicial act of a copy thereof on the

person indicated in the notice, constitute an executive title for all

effects and purposes of Title VII of Part I of Book Second of the

Code of Organization and Civil Procedure.

(6) The imposition by the competent authority of an

administrative penalty in terms of this regulation shall be without

prejudice to any other consequences of the act or omission of the

offender under civil or criminal law

Provided that in all cases where the competent authority

imposes an administrative penalty in respect of anything done or

omitted to be done by any person and such act or omission also

constitutes a criminal offence, no proceedings may be taken or

continued against the said person in respect of such criminal

offence.

(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.

(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.

(2) The competent authority may require the payment service

provider concerned to pay all the expenses of, and incidental to,

any publication pursuant to this regulation,or such part thereof as it

may deem appropriate; and any sum so due shall be recoverable by

the competent authority in the same manner as an administrative

penalty imposed under these regulations.

(3) 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.

A payment service provider who is aggrieved by any

decision of the competent authority under these regulations may

refer the matter to the Tribunal and the provisions of article 10 of

the Banking Act and article 21 of the Financial Institutions Act

shall apply mutatis mutandis.

(1) Further to any Rules which the competent authority

may issue from time to time, payment service providers shall have

their own internal complaints-handling procedures, which should

be made available to their consumers at all time and free of charge.

(2) Following the investigation of the complaint by the

payment service provider, the final response should be provided to

the consumer within fifteen days after receipt of the complaint.

(3) In the event that the consumer does not accept the redress

proposed by the payment service provider or where a complaint has

not been upheld, the payment service provider is required to notify

the consumer of the right to lodge a complaint in writing with the

Office of the Arbiter for Financial Services.

(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;

CREDIT INSTITUTIONS AND FINANCIAL INSTITUTIONS

(PAYMENT ACCOUNTS)

(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).".