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Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,324, 7 ta’ Jannar , 2020
Taqsima  B
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L.N. 2 of 2020
MALTA FINANCIAL SERVICES AUTHORITY ACT
(CAP. 330)
Distance Selling (Retail Financial Services) 
(Amendment) Regulations, 2020
IN EXERCISE of the powers conferred by articles 20A and 20B
of the Malta Financial Services Authority Act, the Minister
responsible for the regulation of Financial Services, acting on the
advice of the Malta Financial Ser vices Authority as the compete nt
authority for the purposes of the Act, has made the following
regulations:-
Citation and 
scope . 
S.L. 330.07.1. (1) The title of these regulations is the Distance Selling
(Retail Financial Services) (Amendment) Regulations, 2020 and t hese
regulations shall be read and construed as one with the Distanc e
Selling (Retail Financial Servi ces) Regulations, hereinafter re ferred to
as "the principal regulations".
(2) The purpose of these regulations is, in part, to transpose
Article 110 of Directive (EU ) 2015/2366 of the European Parliam ent
and of the Council of 25 November  2015 on payment services in t he
internal market, amending Directives 2002/65/EC, 2009/110/EC an d
2013/36/EU and Regulation (EU) No 1093/2010, and repealing
Directive 2007/64/EC.
Amends 
regulation 2 of 
the principal regulations.2. Sub-regulation (1) of regulation 2 of the principal
regulations shall be amended as follows:
(a) immediately after the definition "the Act", there shall
be added the following new definitions:
(b) immediately after the d efinition "consumer", there
shall be added the following new definition:
" "the CRD" means Directive 2013/36/EU of the
European Parliament and of the Council of 26 June 2013 on
the access to the activity of credit institutions and theCap. 555." "Arbiter" means the Arbiter for Financial Services
appointed under article 14 of the Arbiter for FinancialServices Act; 
Cap. 204."Central Bank" means the Central Bank of Malta as
defined by the Central Bank of Malta Act;";
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prudential supervision of credit institutions and investment
firms, amending Directive 2002/ 87/EC and repealing
Directives 2006/48/EC and 2006/49/EC, as amended fromtime to time, and includes any implementing measures that
have been or may be issued thereunder;"; 
(c) immediately after the definition "EEA State", there
shall be added the following new definition:
" "Electronic Money Directive" means Directive
2009/110/EC of the European Parliament and of theCouncil of 16 September 2009 on the taking up, pursuit
and prudential supervision of the business of electronicmoney institutions amending Directives 2005/60/EC and
2006/48/EC and repealing Directive 2000/46/EC, as may
be amended from time to time, and includes any
implementing measures, implementing technical
standards, regulatory technical standards and similar
measures that have been or may be issued thereunder;";
(d) the definition "Minister" shall be deleted; and
(e) immediately after the definition "Member State",
there shall be added the following new definitions:
Cap. 376." "payment service" means any business activity set
out in the Second Schedule to the Financial Institutions
Act;
"Payment Services Directi ve" means Directive (EU)
2015/2366 of the European Parliament and of the Councilof 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, andrepealing Directive 2007/64/EC, as may be amended from
time to time, and includes a ny implementing measures,
implementing technical standards, regulatory technical
standards and similar measures that have been or may be
issued thereunder;
"payment service provider" means:
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Amends of 
regulation 5 of 
the principal 
regulations.3.  Paragraph (d) of sub-regulatio n (1) of regulation 5 of the
principal regulations shall be amended as follows:
(a) in sub-paragraph (i) thereof, the words "to the
supplier, the relevant contact details", shall be substituted b y the
words "to the supplier and the relevant contact details";
(b)  sub-paragraph (ii) thereof , shall be substituted by the
following:
"(ii) that the Arbiter offers an out-of-court
complaints mechanism for the consumer that is party to theCap. 371.(a) credit institutions  as defined in article
2(1) of the Banking Act, 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 thosebranches are located within the European Union or,
in accordance with Artic le 47 of the CRD and with
national law, outside the European Union;
Cap. 376.(b) electronic money institutions as defined in
article 2(1) of the Financial Institutions Act, beingcompanies, that have been granted authorisation
under Title II of the Electronic Money Directive toissue electronic money, including, in accordance with
Article 8 of that Directive and with national law,
branches thereof, where such branches are locatedwithin the European Union and their head offices are
located outside the European Union, in as far as the
payment services provided by those branches arelinked to the issuance of electronic money;
(c) post office giro institutions which are
entitled under national law of any Member State to
provide payment services;
Cap. 376.(d) payment institutions as defined in article
2(1) of the Financial Institutions Act;
Cap. 376. (e) account information service providers as
defined in article 2(1) of the Financial Institutions
Act;
(f) the European Central Bank and national central
banks when not acting in their capacity as monetaryauthority or other public authorities; or
(g) Member States or their regional or local
authorities when not acting in their capacity as public
authorities.".
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distance contract and the methods for having access
thereto;";
(c) in sub-paragraph (iv) thereof, the words " any
compensation schemes or other compensation arrangements
or guarantees funds as may  be applicable.", shall be
substituted by the words "any compensation schemes or other
compensation arrangements or guarantees funds as may beapplicable:"; and 
immediately thereafter there shall be added the
following new provisos:
Amends 
regulation 12 of the principal 
regulations.4. Regulation 12 of the principal regulations shall be amended
as follows:"Provided that paragraphs (a), (b)(i), (b)(ii), (c)(ii),
(c)(iii), (c)(vi), (c)(vii), (d )(i), (d)(ii) and (d)(iii) shall  not
apply to suppliers which are payment service providers:
Cap. 204.Provided further that Articles 44, 45, 51 and 52 of
the Payment Services Directive as transposed in directives
issued by the Central Bank under the Central Bank of
Malta Act shall also apply to suppliers which are paymentservice providers.".
Cap. 555.(a) in sub-regulation (1) thereof, the words "the
Consumer Complaints Manager who shall investigate such
complaint in accordance with article 20 of the Act.", shallbe substituted by the words "t he Arbiter in terms of the
Arbiter for Financial Services Act."; and
(b) in sub-regulation (2) thereof, the words "The
Consumer Complaints Manager", shall be substituted by
the words "The Arbiter for Financial Services".
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