MALTA: MFSA Publishes Proposed Rules for Enhanced Customer Protection in Investment Services

Friday February 28 2014

The Malta Financial Services Authority (MFSA) has published recommendations regarding the proposed Conduct of Business Rules for the enhanced protection of customers in investment services.

A Conduct of Business (Investment Services) Task Force within the MFSA has presented the Board of Governors with proposals for the review of the current regulatory regime in investment services and the definition of appropriate policy changes.

The Board of Governors of the MFSA has considered this initial report in consultation with members of the authority.
Some of the key features of these recommendations as approved by the MFSA Board of Governors include the following:

1) Consumer outcomes, objectives and principles in line with the UK FCA Treating Customers Fairly model (“TCF”) and the UK Financial Services and Markets Act 2000 in addition to outcomes of consumer relevance currently regulated by MFSA.
2) Creation of a single unified Code regulating Conduct of Business in financial services. The code should include: desired outcomes of the first objective, achieve consistency, avoid regulatory gaps in the Conduct of Business regulation, address each issue individually, achieve completeness, coordinate sectional regulation, align with international requirements.
3) Investor protection for locally listed securities
4) Product Intervention
5) Strengthening of customer records
6) Professional standards
7) Capital requirements
8) Advisory and non-advisory services
9) Information about products and risk disclosure
10) Remuneration disclosure

Click on the above link for more details.