The Malta Financial Services Authority (MFSA) has concluded a Thematic Review into payment accounts offered by Financial Institutions, identifying general compliance with regulatory requirements but also pointing to areas requiring corrective action.

The review assessed Fee Information Documents (FID), Statements of Fees (SOF), and the accuracy of information published on the MFSA’s Payment Accounts Fees Comparison Tool. It also examined the way Financial Institutions describe their services to consumers.

The MFSA reported that most Financial Institutions complied with the standardised format for FIDs under Commission Implementing Regulation (EU) 2018/34. These documents are intended to help consumers compare fees before entering into a payment account agreement. However, the Authority stressed the importance of providing them at the pre-contractual stage and in line with prescribed terminology requirements.

On Statements of Fees, which must be issued annually and free of charge under Commission Implementing Regulation (EU) 2018/33, one institution was found not to be following presentation requirements. The MFSA has directed immediate corrective measures in this case.

The review also found shortcomings in the Payment Accounts Fees Comparison Tool hosted on the MFSA website. Some institutions were not updating their information regularly, while in one instance, a discontinued product remained listed.

Another area of concern was the use of potentially misleading terminology on websites and marketing materials. Phrases such as “Bank,” “Banking,” or “Bank Account” were found on some sites, despite the institutions not holding a banking licence. The MFSA warned that this could confuse consumers about the regulatory status of the provider.

The Authority also reminded institutions that payment accounts do not pay interest and are not covered by the Depositor Compensation Scheme, which applies only to licensed banks. Institutions must make this clear to customers in all communications.