The Malta Financial Services Authority (MFSA) continues to demonstrate its commitment to consumer protection, transparency, and innovation.
Recent announcements highlight key developments: a thematic review exposing gaps in payment account offerings by financial institutions, and the launch of an academic journal to foster global supervisory discourse.
These initiatives seemingly underscore Malta‘s role as a forward-thinking hub in European financial services.
The MFSA’s Thematic Review into payment accounts offered by financial institutions has revealed notable shortcomings in fee transparency and consumer communication.
Conducted under the Payment Accounts Regulations (S.L. 371.18), the review scrutinized compliance with Commission Implementing Regulation (EU) 2018/34.
It focused on the quality of Fee Information Documents (FID), Statements of Fees (SOF), and the accuracy of data in the MFSA’s Payment Accounts Fees Comparison Tool.
Payment accounts, essential for everyday transactions like deposits, withdrawals, and third-party payments, must adhere to strict standards for fee comparability and disclosure.
Key findings indicate general compliance in core areas but highlight several gaps requiring urgent attention.
One institution fell short on SOF presentation, undermining transparency.
Others delayed updates to the comparison tool, leaving outdated products listed and misleading consumers.
A broader concern was low consumer awareness: many users misunderstand that these accounts are for transactional purposes only, earn no interest, and lack coverage under the Depositor Compensation Scheme—unlike traditional bank accounts.
Compounding this, some providers employed misleading terms like “Bank” or “Bank Account,” blurring lines between regulated banks and payment service providers.
MFSA Chief Officer Supervision, Dr. Christopher P. Buttigieg, emphasized the review’s implications:
“This thematic review reinforces our commitment to maintaining high standards of transparency and consumer protection in Malta’s financial services sector. While we observed general compliance in key areas, the identified gaps require immediate attention to ensure consumers receive clear, accurate information about the services they are purchasing.”
In response, the MFSA has mandated corrective actions, including standardized FID delivery before contracts, annual free-of-charge SOFs, and real-time tool updates.
Institutions must also adopt non-misleading language and educate users on service limitations.
To bolster public knowledge, the MFSA rolled out awareness campaigns on its website and social media, detailing distinctions between banks and payment providers.
This review aligns with broader EU efforts to empower consumers amid rising digital payments.
By addressing these gaps, the MFSA aims to mitigate risks of hidden fees and confusion, fostering trust in Malta’s vibrant financial ecosystem.
Supervisory follow-ups will ensure sustained compliance, protecting users in an era of fintech advancements.
Complementing its regulatory vigilance, the MFSA launched the inaugural volume of the Journal of Financial Supervisors Academy (JFSA) on September 1, 2025.
Released by the MFSA’s Financial Supervisors Academy, this open-access international journal bridges academic research and practical supervision.
It seeks to advance policymaking through rigorous analysis of financial regulation, offering diverse insights into a sector shaped by technological and geopolitical shifts.
Volume I features contributions from academics, economists, legal experts, and supervisors, delving into digital finance, capital markets, regulatory independence, and university-authority collaborations.
Topics reflect pressing challenges, from AI-driven advancements to cross-border oversight.
MFSA CEO Kenneth Farrugia hailed the launch as:
“A significant milestone for Malta, demonstrating our commitment to shaping regulatory thought leadership and strengthening the intellectual foundations of financial supervision.”
Editor-in-Chief Professor Christopher P. Buttigieg added that the JFSA closes the divide between theory and practice, with Volume II slated to examine the evolving art of supervision.
The event at San Anton Palace saw contributors present the journal to President Myriam Spiteri Debono, who endorsed it as a patron.
She stated:
“At its core, financial supervision supports the growth of the financial system while protecting its integrity and the interest of citizens. In today’s world, supervision cannot be static. It must evolve, adapt and anticipate threats—whether they arise from technological disruptions, cybercrime or misconduct.”
To recap, the payment accounts review and journal launch indicate the MFSA‘s focus on immediate consumer safeguards paired with long-term intellectual advancement.