Earlier this week the Malta Competition and Consumer Affairs Authority, in collaboration with the Ministry for Social Dialogue, Consumer Affairs and Civil Liberties, has launched two charters on the rights and obligations of consumers when provided with financial and banking services.
Addressing a press conference at the MCCAA building, Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties, said that the publication of these two charters implement another two proposals of the electoral manifesto related to consumer rights.
Dr Dalli explained how through these charters, consumers should be more aware of their rights and responsibilities when investing money or purchasing a banking service. The provision of such information not only ensures that consumer rights are well protected but also gives consumers confidence when they purchase such financial services.
These charters also safeguard consumers’ financial interests as they prohibit hidden costs and expenses. The MCCAA’s chair, Helga Pizzuto, said the charters have been drafted by the authority in collaboration with various entities from the financial services sector, namely the Malta Financial and Services Authority, the Malta Bankers’ Association, the College of Stockbrokers, the Malta Funds Industry Association and the Malta Association of Small Shareholders. Ms Pizzuto emphasised that these two charters reflect the information consumers require to make informed buying decisions.
Joseph Camilleri, Permanent Secretary within the Ministry for Social Dialogue, Consumer Affairs and Civil Liberties, said that with the launch of these charters the ministry would deliver 90 per cent of its electoral programme.
The charter about banking services provides guidance to consumers when using banking services. When making such purchases consumers should be aware that the bank is obliged to inform them about all costs related to the banking service and that information on the applicable fees has to be made accessible, free of charge, from all bank branches and also from the bank’s website.
Consumers should also be aware that they have the right to switch banks in Malta in an easy and swift manner. Other rights include a free bank statement that includes applicable fees and interests at least once a year and also to be provided with a detailed quote before entering into a loan agreement. This charter also mentions the obligation of banks to advertise their products and services in a clear and unambiguous manner and to include information related to payments, interests and conditions.
The charter on investments provides guidance to small investors who are less experienced and hence more vulnerable than others when investing their money. This charter also provides guidance to financial intermediaries offering invest-ment services to better identify the legitimate expectations of their clients who classify as small investors.
In fact the charter stipulates that when a financial intermediary indicates financial products suitable to a particular investor, the former is obliged to ask questions to the investor to gain better understanding of the investor’s expectations from the investment being considered.
When consumers consider buying complex financial products the financial inter-mediary is obliged to establish whether the consumer has suf-ficient knowledge and experience to make such investment and whether he is aware of the risks associated with such products.
This charter also lists the information that financial intermediaries are obliged to provide investors with. This includes information on the investment that is being proposed or that he is showing an interest in, information on the associated risks of the investment being made or proposed, that past successes of the investment proposed are not guaranteed in the future, and also information on the fees or payments and how these apply to the investment the consumer is undertaking.
Consumers must also receive in writing all the information related to the investment and once signed must also be given a copy of the investment contract.
This charter also mentions the obligations investors have when considering or buying an investment. Among these obligations the charter lists the responsibility to obtain infor-mation on different investments from various intermediaries, gather as much information as possible on the investment being considered, and answer truthfully to all the questions asked by the intermediary.
If consumers encounter problems when purchasing an investment or banking service they may seek the help of the Office of the Arbiter for Financial Services by calling freephone 8007 2366 or send an e-mail on complaint.info@financialarbiter.org.mt.
The charters are available in both English and Maltese and may be downloaded from the MCCAA website at www.mccaa.org.mt. Copies of these charters will be distributed to every household in the coming weeks while they may also be obtained from local councils, banks and from servizz.gov offices.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
Malta Competition and Consumer Affairs Authority
Office for Consumer Affairs
Mizzi House,
National Road,
Blata l-Bajda
HMR 9010
Freephone: 8007 4400
Tel: 2395 2000
Enquiries: info@mccaa.org.mt
Consumer complaints: fair.trading@mccaa.org.mt
Website: www.mccaa.org.mt
MCCAA office hours for the public:
Monday to Friday from 8.30am to 12.30pm
European Consumer Centre Malta
(For complaints against traders in other EU states)
47A, South Street,
Valletta.
VLT 1101
Monday to Friday from 8.30am to 3pm.
Tel: 2122 1901
E-mail: ecc.malta@gov.mt