ARBITER FOR FINANCIAL SERVICES [CAP. 555. 1
CHAPTER 555
ARBITER FOR FINANCIAL SERVICES ACT
To set up the Office of the Arbiter for Financial Services with power to
mediate, investigate, and adjudicate complaints filed by a customeragainst a financial services provider, to set up a Board of Managementresponsible for the administration of the Office of the Arbiter for FinancialServices, and to provide for other purposes connected therewith.
18th April, 2016*
ACT XVI of 2016 , as amended by Acts XVI of 2017 , VII of 2018 . and
VIII of 2020 .
PART I
Preliminary
Short title. 1. The short title of this Act is the Arbiter for Financial
Services Act.
Interpretation.
Amended by:
XVI. 2017.87.2. In this Act, unless the context otherwise requires:
"Arbiter" means the Arbiter for Financial Services appointed
under article 14;
"Board" means the Board of Management and Administration
established under article 3;
"customer" means a natural person, including his successors in
title, or a micro enterprise;
"durable medium" means any instrument which enables the
storage of information addressed personally to a particular per son
in a way accessible for future reference and for a period of ti me
adequate for the purposes of the information, and allows theunchanged reproduction of the information stored;
"eligible customer" means a customer who is a consumer of a
financial services provider, or to whom the financial servicesprovider has offered to provide a financial service, or who hassought the provision of a financial service from a financial se rvices
provider. It includes the lawful successor in title to the fina ncial
product which is the subject of the relevant complaint;
Cap. 330."financial services provider" means a provider of financial
services which is or has been licensed or otherwise authorized by
the Malta Financial Services Authority in terms of the Malta
Financial Services Authority Act or any other financial services
law, including but not restricted to investment services, banki ng,
financial institutions, credit cards, pensions and insurance, w hich is
or has been resident in Malta or is or has been resident in ano ther
EU/EEA Member State and which offers or has offered its financi al
services in and, or from Malta. A provider of financial services which
has had its licence suspended or withdrawn by the competentauthority, but which was licensed during the period in relation  to
* see article 1(2) of this Act as originally enacted, and Legal  Notice 132 of 2016.
2 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
which a complaint by an eligible customer is made to the Arbite r,
shall be considered as falling within the definition of a finan cial
services provider;
"financial year" means a period of twelve months beginning on
the first day of January and ending on the thirty-first day ofDecember of the same year; 
"micro enterprises" means an enterprise which employs fewer
than ten persons and whose annual turnover and, or annual balan ce
sheet total does not exceed two million euro (€2,000,000);
"Minister" means the Minister responsible for Finance;
"Office" means the Office of the Arbiter for Financial Services
established under article 10;
"Office staff member" means a person appointed under article
19(4)( c);
"parties" in relation to a complaint means the complainant, the
financial services provider against whom the complaint is made,and any other person who in the opinion of the Arbiter should b e
treated as a party to the complaint;
"substitute Arbiter" means the Arbiter appointed under article
16.
PART II
The Board of Management and Administration
Establishment and 
composition of the Board of Management and 
Administration.3.(1) There shall be established a Board, to be known as the
Board of Management and Administration, which shall beresponsible for the management and administration of the Office  of
the Arbiter for Financial Services.
(2) The Board shall be composed of three members, including
the Chairperson, who shall be appointed by the Minister, a memb er,
who shall also be appointed by the Minister, and another memberwho shall be appointed by the Minister responsible for Consumer
Affairs.
(3) The Minister shall appoint a Chairperson who has
knowledge or experience of consumer issues relating to theprovision of financial services.
(4) The Minister shall select the members of the Board from
among persons who appear to him to be qualified to be so select ed.
(5) The members of the Board shall exercise their functions
under this Act in their individual judgement and they shall not  be
subject to the direction or control of any other person or auth ority
in the exercise of such functions.
Duration of tenure 
of the Board.4.(1) The members of the Board shall hold office for a period
of up to five years, and a member shall, on ceasing to be a mem ber,
be eligible for reappointment.
(2) The members of the Board shall be entitled to such
remuneration as the Minister may from time to time determine.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 3
Removal of 
members of the Board.5. The Chairperson and any member of the Board may be
removed by the Minister on the ground of proved inability tocontinue to perform his duties or on proved misbehaviour.
Resignation. 6.(1) Any member of the Board may resign from his office
by letter addressed to the Minister.
(2) The appointment, termination of office or resignation of
any person as a member of the Board, including the reasons forsuch termination or resignation as applicable, shall be publish ed in
the Gazette.
Secretary to the 
Board.7.(1) The Board shall appoint a secretary for such period and
under such terms as the Board shall deem appropriate.
(2) It shall be the duty of the Secretary to make the necessary
preparations for the meetings of the Board and to keep minutes of
these meetings.
(3) The Secretary shall also perform any function that may be
delegated to him in writing by the Board from time to time.
Functions of the 
Board.8.(1) It shall be the function of the Board:
(a) to provide support in administrative matters to the
Arbiter in the exercise of his functions when theArbiter so requests;
(b) to keep under review the efficiency and effectiveness
of the Office and to advise the Minister, either on theMinister’s request or on its own initiative, on anymatter relevant to the operation of the Office;
(c) to assist the Arbiter on any matter on which the Arbiter
seeks advice;
(d) to recommend to the Minister the levies and charges to
be payable for the performance of services provided bythe Office;
(e) to advise the Minister on the making of rules regarding
the payment of levies and charges to be paid bydifferent categories of persons to the Office, theamounts of those levies and charges, the periodswithin which specified levies or charges are to be paid,and penalties that are payable by a person who fails topay on time or pay in full the amount due;
(f) to keep a record of the persons who are liable to pay a
specified levy or charge, and the returns actuallyreceived by the Office;
(g) to collect and recover the levies and charges due;
(h) to advise the Minister on the making of rules, either on
its own initiative or at the request of the Arbiter, todetermine the manner and requirements, including anyfees payable therefor, for registration of any documentunder this Act;
(i) to determine accounting policies which are to be
followed by the Office when keeping accountingrecords;
4 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
(j) to determine the form of the annual report to be drawn
by the Arbiter on an annual basis;
(k) to determine the form of the report with estimates of
income and expenditure to be drawn by the Board onan annual basis;
(l) to determine the form of the report relating to the
strategic plan to be drawn by the Board on an annualbasis;
(m) to perform such functions or activities as are assigned
to it by this Act;
(n) to determine any service which shall be deemed as an
additional financial service that may be subject toconsideration by the Arbiter; and
(o) to perform any other function supplementary or
ancillary to the above.
(2) In the discharge of its function under sub-article (1)( f), the
Board may bring proceedings before the Civil Court to recover a s a
debt an amount of levy or charge due to the Office.
(3) The legal representation of the Board shall vest in the
Chairperson:
Provided that the Board may designate any one or more of
the other members of the Board to appear in the name and on beh alf
of the Board in any judicial proceedings and to sign for and on  its
behalf any other act, instrument or other document whatsoever.
(4) It shall not be the function of the Board to intervene in an y
way on the manner how the Arbiter deals with the merits of aparticular complaint.
Accountability of 
the Board.9.(1) The Board shall be accountable to the Minister for the
discharge of its duties.
(2) ( a) Within a period of six months immediately preceding
the beginning of each financial year, the Board, inconsultation with the Arbiter, shall prepare, in the formestablished by the Board, a statement with estimates ofincome and expenditure relating to the Office for theforthcoming financial year. Such estimates shall beapproved by the Board.
(b) The statement shall specify:
(i) the amounts expected to be collected and
recovered during the financial year concernedfrom the imposition of levies and fees;
(ii) any other sources from which funds are expected
to be obtained during that year to finance theOffice’s activities and the amounts expected tobe raised from those sources; and
(iii) the activities which the Office proposes to
undertake during that year;
(c) A copy of the estimates shall be sent forthwith to the
Minister.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 5
(d) The Minister shall, at the earliest opportunity and not
later than six weeks after he has received a copy of theestimates from the Board, approve the same with orwithout amendments.
(e) Such estimates are to be laid on the Table of the House
of Representatives.
(3) ( a) Within six months before the beginning of each
financial year, the Board, in consultation with the
Arbiter, shall prepare for the year a strategic plan in the
form of a report established by the Board. The Boardshall approve such strategic plan.
(b) The report shall specify:
(i) the objectives of the activities of the Office for
the financial year concerned;
(ii) the nature and scope of the activities to be
undertaken;
(iii) the targets and criteria for assessing the
performance of the Office; and
(iv) the uses for which it is proposed to apply the
Office’s resources.
(c) A copy of the strategic plan shall be sent forthwith to
the Minister.
(d) A copy of such report shall be laid on the Table of the
House of Representatives and shall be made availableto the public.
(4) The content and other matters relating to the estimates and
strategic plan mentioned in sub-articles (2) and (3) may beprescribed by regulations made under this Act.
(5) The Chairperson of the Board shall provide the Minister
with such reports relating to the activities of the Board and t he
Office as the Minister may require from time to time:
Provided that the reports shall not disclose particulars or
comments on any complaint that has not been determined by the
Arbiter.
PART III
The Office of the Arbiter
Office of the 
Arbiter for 
Financial Services.10. (1) There shall be established an Office of the Arbiter for
Financial Services.
(2) The Office shall consist of the Board, the Arbiter and the
substitute Arbiter, if any, and of such officers and staff members
appointed or employed with the Office.
Functions of the 
Office.11. (1) Without prejudice to the functions of the Arbiter under this
Act, it shall be the function  of the Office:
(a) to deal with complaints filed by eligible customers;
(b) to inform the public through electronic means and,
where possible, by written guidelines on the functions
6 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
carried out by the Office, the contact details of the
Office, the procedure followed by the Office inrelation to complaints, and other informationconcerning the Office aimed at informing the public onthe services offered by the Office;
(c) to provide the parties to proceedings with the
information referred to in sub-article (2) on a durablemedium;
(d) to provide the means to enable the customer to submit
a complaint electronically or by recorded delivery
through the post or courier service;
(e) to provide the means to enable the exchange of
information between the parties to a dispute viaelectronic means or by recorded delivery through thepost or courier service;
Cap. 586.(f) to ensure that the processing of personal data complies
with the rules on the protection of personal data asestablished under the 
Data Protection Act;
(g) to establish rules and guidelines in relation to the
implementation of the regulations made in terms ofarticle 33; and
(h) to carry out such other functions as are assigned to it
under this Act or any other law.
(2) The Office may delegate in writing to any person engaged
with the Office, any of its functions under this Act, except th is
power of delegation.
Accountability of 
the Office.12. (1) The Office shall be accountable to the Minister for the
discharge of its duties.
(2) ( a) The Office shall ensure that proper accounting records,
in the form established by the Board, are kept whichreflect the financial transactions of or relating to theOffice.
(b) The accounts of the Office shall be approved by the
Board.
(c)  Accounting records shall be retained for a period of
ten years.
Cap. 601.(d) The accounts of the Office shall be audited by the
Auditor General, and the Office shall be subject to the
Public Finance Management Act.
(3) The content and other matter relating to the accounts
mentioned under sub-article (2) may be prescribed by regulation s
made under this Act.
Funding of Office. 13. The funds of the Office shall consist of:
(a) the funds provided to the Office following estimates
prepared by the Board and approved by the Minister in
accordance with article 9(2)( d);
(b) the funds accruing to the Office from any other source.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 7
Appointment of 
Arbiter.14. (1) The Minister shall appoint an Arbiter from among
persons who appear to him to be qualified and suitable to be soappointed.
(2) A person shall be eligible for appointment as an Arbiter if
he possesses the necessary expertise in consumer related issues  in
respect of financial services, including a general understandin g of
law.
(3) A person shall not be eligible for appointment as an Arbiter
if he is:
(a) a Member of the House of Representatives or a
Member of the European Parliament or a Mayor or a
Councillor on a Local Council ; or
(b) a public officer; or
(c) a member or employee of an agency, government
entity or local authority; or
(d) a person convicted of any offence affecting public
trust, or of an offence, other than an involuntaryoffence, which is punishable by imprisonment for aterm of at least one year.
(4) The Arbiter shall not hold any position which is
incompatible with the correct performance of his official dutie s,
with his impartiality and independence, or with public confiden ce
therein.
(5) The Arbiter shall declare to, and seek the approval of, the
Minister to any positions, trusts or memberships which the Arbi ter
considers do not affect impartiality or independence and publicconfidence, and which it is desired to retain during his term o f
office.
(6) On appointment, an Arbiter shall take an oath of Oath of
Office in the form hereunder:
"I ................................... swear/solemnly affirm th at I
shall perform my duties as Arbiter honestly,impartially, with due diligence, and without fear orfavour according to law.".
Term of office. 15. (1) The Arbiter shall hold office for a period of seven years
after which he shall not be eligible for re-appointment.
(2) The Arbiter may resign his office by letter addressed to the
Minister.
(3) The appointment, termination of office or resignation of the
Arbiter, including the reasons for such termination and resigna tion
as applicable, shall be published in the Gazette.
Appointment of a 
substitute Arbiter.16. (1) The Minister may -
(a) at any time during the illness or absence of the Arbiter,
or
(b) for any other temporary purpose where the Arbiter
considers it necessary not to mediate, investigate andadjudicate complaint/s because of circumstances due
8 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
to which he deems it appropriate to abstain,
appoint a substitute Arbiter in accordance with this article, and such
substitute Arb iter shall be paid such remuneration, calculated pro
rata on a time basis on the amount payable to the Arbiter.
(2) The power conferred by sub-article (1)( b) shall be exercised
only on a declaration signed by the Arbiter to the effect that,  in his
opinion, it is necessary for the due conduct of the business of  the
Arbiter under this Act that a subs titute Arb iter should be
temporarily appointed.
(3) An Arbiter appointed under this article on account of the
illness or absence of the Arbiter shall hold office until the
resumption of office of the Arbiter, and every substitute Arbit er
appointed for a temporary purpose shall hold office until heperforms the function assigned to him.
(4) ( a) A person shall not be qualified to be approved as
Arbiter under this article if he is disqualified to be
appointed as Arbiter under article 14.
(b) The provisions of article 14(4), (5) and (6) shall apply
to a person appointed under this article.
Disqualification or 
removal from office.17. (1) A person shall be disqualified from remaining as an
Arbiter and may be removed from Office by the Minister on the
ground of proved inability to perform the functions of his offi ce,
whether arising from inability of body or mind or on the ground  of
proved misbehaviour:
Provided that in taking a decision to remove any person
from the office of Arbiter under this article, the Minister sha ll act
in accordance with the principles of natural justice.
(2) The decision of the Minister to remove a person from the
office of Arbiter shall be subject to appeal to the Court of Ap peal
by application to be filed in the said Court within ten days fr om the
notification of the decision to the Arbiter.
(3) The Court of Appeal shall order the service of the
application filed in terms of sub-article (2) upon the Minister  who
shall have ten days within which to file a reply. 
(4) An appeal filed in terms of this article shall be heard wit h
urgency and shall be determined by judgement within four monthsfrom the filing of the reply or from the date when the period f or the
filing of the reply shall have lapsed.
(5) The Court of Appeal may, upon a demand of the Minister or
of the Arbiter shorten the time limits provided for in this art icle for
the filing of the appeal and the reply.
Remuneration. 18. (1) The Arbiter shall be entitled to such salary and
allowances as the Minister may by order in the Gazette establis h and
such remuneration shall be a charge on the Consolidated Fund.
(2) The salary and allowances payable to an Arbiter shall not
be diminished during the continuance of the Arbiter’s appointme nt.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 9
Functions and 
powers of Arbiter for Financial Services.
Amended by:
VII.2018.94.19. (1) It shall be the primary function of the Arbiter to deal
with complaints filed by eligible customers through the means o f
mediation in accordance with article 24, and where necessary, b y
investigation and adjudication.
(2) In addition to the functions under sub-article (1), it shall  be
the function of the Arbiter:
(a) to establish rules and guidelines in relation to the
implementation of the regulations made in terms ofarticle 33;
(b) to carry out such other functions as may be assigned to
him under this Act or any other law.
(3) In carrying out his functions under sub-article (1), the
Arbiter shall:
(a) act independently and impartially, and shall not be
subject to the direction or control of any other personor authority;
(b) determine and adjudge a complaint by reference to
what, in his opinion, is fair, equitable and reasonablein the particular circumstances and substantive meritsof the case;
(c) consider and have due regard, in such manner and to such
an extent as he deems appropriate, to applicable and
relevant laws, rules and regulations, in particular thosegoverning the conduct of a service provider, includingguidelines issued by national and European Unionsupervisory authorities, good industry practice andreasonable and legitimate expectations of consumersand this with reference to the time when it is alleged thatthe facts giving rise to the complaints occurred;
(d) deal with a complaint in a procedurally fair, informal,
economical and expeditious manner;
(e) deal with any question of prescription in terms of law:
Provided that the financial services provider may only raise
the plea of prescription in the first written submissions provi ded for
by article 22(3)(c) unless otherwise authorised by the Arbiter giving
reasons for that authorisation:
Provided further that the Arbiter shall not be entitled to
raise the question of prescription of his own motion:
Provided further that nothing in this Act shall be interpreted as
entitling the Arbiter to give a decision on any claim which is barred by
prescription when the investigated party shall have raised the defense of
prescription.
(4) ( a) Subject to the limitations imposed by this Act or any
other law, the Arbiter shall have all powers that arenecessary to enable him to perform his functionsproperly including the power to summon witnesses, toadminister oaths and to issue such interlocutory orders,including but not limited to orders restricting thetransfer of property and assets of a financial services
10 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
provider as he may deem necessary for the proper
performance of the functions of his office. An Arbitershall abstain and may be challenged in the samecircumstances as a Judge of the Superior Courts:
Cap. 12.Provided that in issuing interlocutory orders under this
paragraph, the Arbiter shall act mutatis mutandis in
accordance with the principles regulating the issuingof precautionary warrants under the 
Code of
Organization and Civil Procedure .
(b) (i) An Arbiter may appoint one or more suitable
officers to perform specific functions assignedto him under sub-article (1).
(ii) A person shall be suitable to be appointed as an
officer under sub-paragraph (i) if he isknowledgeable and well versed in those areasfor which he shall be appointed.
(c) An Arbiter may, subject to availability of resources,
appoint and employ such number of office staffmembers which are necessary for the properfunctioning of the Office.
(d) An Arbiter may, whenever the occasion requires and
subject to availability of resources, engage suchconsultants or advisers to assist him in the fulfilmentof his functions:
Provided that such consultants or advisors shall
themselves be independent and impartial of the partiesto the complaint or complaints in respect of which theyshall have been engaged.
(5) Any person appointed under sub-article (4) shall:
(a) carry out his duties free from any interference from
any person except for any direction given by the
Arbiter;
(b) act expeditiously;
(c) not divulge any information acquired by him in the
course of his duties;
(d) periodically report to the Arbiter the progress made
with regard to the complaints assigned to him and onany other matter which falls within his competence.
(6) ( a) The appointment, engagement and employment of
persons mentioned under sub-article 4( b) to ( d) shall
be made by the Arbiter, and the terms and conditionsshall be established by the Board in consultation withthe Minister.
(b) In establishing the terms and conditions, the Board
shall have regard to the Government’s policy withrespect to the remuneration of public sector employeesand any direction that the Minister may give from timeto time for the purpose of giving effect to that policy.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 11
Accountability of 
Arbiter.20.(1)(a) An Arbiter shall ensure that on a yearly basis his
Office prepares an annual report, in the formestablished by the Board, specifying the activities ofthe Office during that year, and shall submit the reportwithin six months from the end of each year to theBoard for its approval:
Provided that the report shall not disclose particulars
or comments on any complaint that has not beendetermined by the Arbiter.
(b) The report shall contain a summary of all complaints
made to, and decisions taken by, the Arbiter during thepreceding financial year and of the results of theinvestigations into those complaints, and a review ofthe trends and patterns observed in the submission ofcomplaints to the Arbiter. Statistical informationreferring to the name of service providers againstwhom res judicata  decisions were given may be
provided.
(c) A copy of the annual report is to be laid on the Table of
the House of Representatives and shall be madeaccessible to the public in such a manner as the Boardmay determine.
(2) The content and other matters relating to the report
mentioned under sub-article (1) may be prescribed by regulation s
made under this Act.
Pension.
Added by 
VII.2018.95.  
Amended by:
VIII.2020.74.
Cap. 56420A.  Without prejudice to article 113 of the Constitution of Malta ,
the holder of the office of Arbiter for Financial Services shal l be entitled
to a pension equivalent to the pension given to Members of the Judiciary
under the Members of the Judiciary (Pensions) Act:
Provided that the holder of the office of Arbiter for Financial
Services shall be eligible to receive the pension referred to h erein
only on reaching retirement age and on condition that the saidindividual would have served a full term of office:
Provided further that the holder of the office of Arbiter for
Financial Services shall be eligible to receive the pension ref erred to
herein, if the holder of such office is compelled to discontinu e in
office due to serious medical reasons, even if the said individ ual has
not served a full term of office:
Provided further that the Arbiter for Financial Services shall
forfeit the right to a pension if he or she is removed from off ice in
accordance with the provisions of Chapter VIII or Chapter VII,respectively, of the Constitution of Malta due to provedmisbehaviour.
Pension to be 
charged on the revenues of Malta.
Added by 
VII.2018.95.20B.  There shall be charged on and paid out of the Consolidated
Fund all such sums of money as may from time to time be granted  by
way of pension to the holder of the office of Arbiter for Finan cial
Services.
12 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
PART IV
Competence 
Competence of 
Arbiter.21.(1)(a) Nothing in this Act shall imply that a complaint
relating to the conduct of a financial service provider isto be exclusively regulated by the provisions of this
Act:
Provided that findings and conclusions reached by an
Arbiter following a complaint filed in terms of this Act
shall be binding on the parties, save for the right ofappeal regulated by article 27.
(b) An Arbiter shall have the competence to hear
complaints in terms of his functions under article 19(1)in relation to the conduct of a financial serviceprovider which occurred on or after the first of May
2004:
Provided that a complaint about conduct which
occurred before the entry into force of this Act shall bemade by not later than two years from the date whenthis paragraph comes into force.
(c) An Arbiter shall also have the competence to hear
complaints in terms of his functions under article 19(1)in relation to the conduct of a financial serviceprovider occurring after the coming into force of this
Act, if a complaint is registered in writing with the
financial services provider not later than two years from
the day on which the complainant first had knowledgeof the matters complained of.
(d) For the purpose of this sub-article, conduct that is
continuing in nature shall be presumed to haveoccurred at the time when it stopped, and conduct thatconsists of a series of acts or omissions shall bepresumed to have occurred when the last of those actsor omissions occurred.
(2) An Arbiter shall decline to exercise his powers under this
Act where:
(a) the conduct complained of is or has been the subject of
a law suit before a court or tribunal initiated by thesame complainant on the same subject matter:
Provided that nothing contained in this paragraph shall
be construed as impeding the Arbiter’s competence toconsider complaints which are being dealt with orwhich have already been dealt with by the MaltaFinancial Services Authority, and the recommendations,
rulings, directives or decisions of the said Authority shallnot be considered as having given rise to a res judicata
with respect to the complainant’s claim; or
(b) it results that the customer failed to communicate the
substance of the complaint to the financial serviceprovider concerned and has not given that financialservice provider a reasonable opportunity to deal with
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 13
the complaint prior to filing a complaint with the
Arbiter; or
(c) the complaint is, in the opinion of the Arbiter,
frivolous or vexatious.
(3) ( a) An Arbiter may not award monetary compensation in
excess of two hundred and fifty thousand euro(€250,000), together with any additional sum forinterest due and other costs, to each claimant forclaims arising from the same conduct.
(b) An Arbiter may, if he considers that fair compensation
requires payment for a larger compensation than thatstipulated in paragraph ( a), recommend that the
financial service provider pay the complainant thebalance, but such recommendation shall not be bindingon the service provider.
(c) For the purpose of determining the euro equivalent of
claims for damages against a service provideradjudged by the Arbiter to have been wholly or in partsubstantiated, any foreign currency shall be convertedto euro at the middle rate of exchange published by theCentral Bank of Malta on the date of when thecomplaint would have been filed with the Office of the
Arbiter.
PART V
Proceedings
Procedure relating 
to complaints.
Cap. 16.22. (1) A complainant shall complain to the Arbiter in writing
identifying the party against whom the complaint is made, thereasons for the complaint, and the remedy that is being sought and
articles 2131 and 2132 of the 
Civil Code shall apply mutatis mutandis
for the interruption of prescription as from the receipt of suc h a
complaint by the Arbiter. The referral of any matter to the Arb iter shall
have the same effect with regard to prescription as a judicial action
before a competent court and article 2117A of the Civil Code shall
apply mutatis mutandis . Any reference in this Act to prescription shall
be construed as a reference to prescription under the Civil Code .
(2) Upon receipt of a complaint, the Arbiter shall determine
whether the complaint falls within his competence.
(3) An Arbiter shall not proceed to deal with a complaint unless
the Arbiter has:
(a) informed the respondent of the complaint;
(b) provided the respondent with such particulars as will
enable him to reply thereto; and
(c) provided the respondent with an opportunity to submit
a reply to the complaint. Such reply shall be forwardedto the Arbiter within twenty days from when the
Arbiter communicates the complaint to the respondent.
The complainant and the respondent have a right to be
represented and assisted by a person or persons of their trust.
14 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
(4) An Arbiter may make preliminary inquiries for the purpose
of deciding whether a complaint should be investigated under th is
Part, and may request the complainant to provide furtherinformation within a specified period of time:
Provided that the Arbiter may decide not to continue to deal
with the complaint if the complainant fails to comply with a re quest
for further information within the period specified by the Arbi ter.
(5) As soon as practicable after the Arbiter has determined that
the complaint does not fall within his competence, or after dec iding
to discontinue with the complaint, the Arbiter shall:
(a) inform the complainant in writing of the decision and
reasons for it; and
(b) provide the Board with a copy of the decision.
(6) On submitting a complaint with the Office of the Arbiter for
Financial Services, the complainant shall pay a fee as prescrib ed
under this Act, and which fee shall be reimbursed only in the c ase
where the complainant decides to withdraw the complaint or if b oth
parties agree on a settlement of the dispute, and in both insta nces
the Arbiter is notified in writing of the decision, which notif ication
shall reach the Arbiter’s Office before the Arbiter shall havereached a decision that the complaint falls within his competen ce.
(7) If -
(a) before the Arbiter shall have reached a decision, the
complainant notifies the Arbiter in writing of thewithdrawal of its complaint; or
(b) the parties agree on a settlement of the dispute,
whether as a result of mediation in terms of article 24or otherwise; or
(c) the continuation of the complaint procedures becomes
unnecessary or impossible for any reason,
the Arbiter shall:
(i) either issue an order for the termination of the
complaint procedures; or
(ii) if requested by both parties and accepted by the
Arbiter, record the settlement on the agreed
terms.
(8) Subject to the provisions of this Act and of any rules made
thereunder as stipulated by article 33, the Arbiter shall regul ate the
proceedings as he thinks fit and proper in accordance with the rules
of natural justice:
Provided that no proceedings before the Arbiter shall be
invalid because of any non-observance of any formalities if the re
has been substantive compliance with the law.
Precautionary acts.
Cap. 12.23. (1) Unless otherwise agreed by the parties, any party may
request the court to issue any of the precautionary acts listed  in
article 830(1) of the Code of Organization and Civil Procedure,
subject to the provisions of the following sub-articles.
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 15
Cap. 12.(2) Where in accordance with sub-article (1) a precautionary
act has been issued, such act shall remain in force until such time as
it shall expire or be revoked in accordance with the provisions  of
the Code of Organization and Civil Procedure  or until such time as
the Arbiter -
(a) shall have determined that the complaint does not fall
within his competence, or after deciding to discontinuewith the complaint in terms of article 22; or
(b) having adjudged the complaint, shall order the party
issuing the precautionary act to withdraw the same andissue the relative counter-warrant.
Cap. 12. (3) Notwithstanding anything contained in the Code of
Organization and Civil Procedure the time established therein
within which the action is to be instituted in respect of the r ight
stated in the precautionary act issued shall be of twenty days from
the filing of the judicial act whereby the court is requested t o issue
the precautionary act. The provisions of the said Code for theextension of the said time shall also apply.
(4) Action as is referred to in sub-article (3) shall be deemed to
have been taken, and complaint procedures with the Arbiter shal l
be deemed to have commenced, when the complaint in writing issubmitted by the complainant to the Arbiter in terms of article22(1).
(5) The party at whose request a precautionary act has been
issued in accordance with this article shall, within the timespecified in sub-article (3), file a note in the records of theproceedings for the issue of the said precautionary act togethe r with
a certificate issued by the Arbiter acknowledging the party’scomplaint.
Cap. 12. (6) The Board established under article 29 of the Code of
Organization and Civil Procedure may make rules concerning all
matters relating to the issue of precautionary acts and other s uch
orders when they relate to complaint procedures submitted to th e
Arbiter.
Mediation. 24. (1) A complaint about the conduct of a financial services
provider shall, as far as possible, be primarily dealt with bymediation.
(2) Participation in the mediation by the parties to a complaint
shall be voluntary, and a party may withdraw from participation  at
any time.
(3) The mediation process shall be carried out by the officers
appointed by the Board under article 8(1), whose function shall  be to
act as a mediator between the complainant and the financialservices provider. A list of such officers shall be held by the  Board:
Provided that the mediator may abandon an attempt to
resolve a complaint by mediation on forming the view that theattempt is not likely to succeed.
(4) Subject to the foregoing provisions and to any regulations
made under sub-article (7), the mediator may regulate his own
16 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
proceedings.
(5) The mediation process shall proceed in private and any
resolution of a dispute as a result of mediation shall not have  the
resolution thereof published under any format.
(6) No appeal shall lie in terms of article 27 from anything
done by an officer acting in his capacity as mediator.
(7) The Minister may, after consultation with the Arbiter and
the Board, make regulations to give better effect to the provis ions
of this article and, without prejudice to the generality of theforegoing, he may:
(a) establish the procedure to be followed by the officer in
his capacity as mediator;
(b) prescribe the types of applications which a
complainant may refer to the officer; and
(c) prescribe the procedure to be followed in the
formulation of a report by the officer.
Investigation.
Amended by:
VIII.2020.75.25. (1) Where the mediation process under article 24 proves
unsuccessful, the Arbiter shall proceed to deal with the necess ary
investigations in private.
(2) ( a) The Arbiter shall provide the parties with an
opportunity to make oral and, or written submissionswith respect to the conduct complained of.
(b) Written submissions shall be filed within twenty days,
and such period shall commence to run from the dayon which the parties receive communication in writingabout the investigation from the Arbiter.
(c) Written submissions made by a party to the Arbiter
shall be notified to the other party or to the personassisting or representing the party in terms of article22(3).
(d) Whenever a notification or communication to the other
party shall be required under this Act, suchnotification or communication shall take place byrecorded delivery through the post or courier service orby electronic means.
(3) ( a) The Arbiter shall hold at least one sitting for the hearing of
the complaint.
(b) The Arbiter shall determine the admissibility,
relevance, materiality and weight of the documentaryand oral evidence.
(c) Hearings are to be held in public unless the Arbiter, giving
reasons, otherwise decides.
(d) Neither party shall be required to be represented or
assisted for oral hearings. If only one party isrepresented or assisted, the Arbiter shall ensure thehearing remains fair to both parties. 
(4)  In the process of investigation, the Arbiter shall inform t he
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 17
parties of the progress made.
(5) The Arbiter may request the production of information or
documentation from either of the parties or from a third party,  as
the case may be, which the Arbiter considers necessary or relev ant
for the determination of the complaint, which information ordocumentation is to be provided before the end of such reasonab le
period as the Arbiter shall specify, and in the case of informa tion,
in such manner or form as may be specified by the Arbiter:
Cap. 12.Provided that for the purpose of obtaining such information
or documentation, the Arbiter shall have the power to summonwitnesses and to administer an oath to any witness and to anyperson concerned in the investigation, including the complainan t
and the service provider, and to require persons to give eviden ce,
and the rules of the 
Code of Organization and Civil Procedure  shall
apply mutatis mutandis  to the production of evidence before the
Arbiter:
Provided further that any person who is summoned to
appear before the Arbiter under this article shall have the sam e
rights and obligations as a witness summoned to appear before t he
court of civil jurisdiction.
(6) ( a) Information obtained by the Arbiter or by any officer
or person in his Office in the course of or for thepurpose of an investigation under this Act shall not bedisclosed except for the purposes of:
(i) the investigation and adjudication;
(ii) any report made under this Act; or
(iii) any proceedings relating to an offence under this
Act.
(b) The Arbiter, officers or persons in his Office shall not
be called upon to give evidence in any proceedings,other than as mentioned under paragraph (a), onmatters coming to their knowledge in the course of aninvestigation or of the execution of other duties carriedout by them under this Act.
Cap. 9. (c) Article 133 of the Criminal Code  shall apply to and in
relation to the Arbiter and any officer or person in hisOffice as they apply to or in relation to a public officeror servant referred to in the said article of the
Criminal Code .
(7) In the process of an investigation, the Arbiter may enter an d
inspect any premises occupied or used by the financial servicesprovider or by any person or body who in the opinion of the Arb iter
is associated with the financial service provider and inspect a ny
document or thing within the premises.
Adjudication.
Amended by:
XVI. 2017.88.26. (1) Following completion of an investigation of a
complaint under article 25, the Arbiter shall proceed withadjudication.
(2) The Arbiter shall proceed to adjudication within ninety
days from the date of receipt of the complaint:
18 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
Provided that where a complaint is complex in nature, the
Arbiter shall deliver his findings at the earliest opportunity being a
date not later than one year from the date of receipt of the co mplaint and
shall inform the parties concerned of the expected adjudicationdate:
Provided further that no nullity shall ensue from failure to
meet the time limits provided for in this sub-article.
(3) ( a) The findings and conclusions reached by the Arbiter
shall be drawn up, in writing, in a decision giving the
Arbiter’s reasons therefor that shall be read out in public
on a day duly notified to the parties.
(b) The decision may include any direction given under
paragraph ( c).
(c) If the complaint is found to be wholly or in part
substantiated, the Arbiter may direct the financialservices provider to do one or more of the following:
(i) to review, rectify, mitigate or change the conduct
complained of or its consequences;
(ii) to provide reasons or explanations for that
conduct;
(iii) to change a practice relating to that conduct;(iv) to pay an amount of compensation for any loss
of capital or income or damages suffered by thecomplainant as a result of the conductcomplained of, without or with interest, at suchreasonable rate and within the parametersestablished by law as the Arbiter may determine,on the whole or any part of the money, and forthe whole or any part of the period between thedate on which the conduct complained of hadstarted until the date of payment;
(v) to specify the period within which the direction
is to be carried out by the financial serviceprovider.
(d) In his decision the Arbiter shall also adjudicate the
costs of the proceedings, by whom they shall be borneand, if necessary, in what proportion, according to thecircumstances of the case.
(e) In the event that a financial services provider becomes
insolvent within the meaning attributed to that term by anylaws or regulations providing for an investor compensationscheme, a depositor compensation scheme or a protectionand compensation fund or any other compensation schemeor fund applicable in respect of the financial servicesprovider sector to which that financial services providerbelongs, and as a consequence of the said insolvency thefinancial services provider is not in a position to pay thecompensation that has been awarded by or following adecision of the Arbiter, the complainant is notwithstandingany other law, to be paid up to twenty thousand euro from
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 19
the said fund or scheme applicable in the financial services
provider sector to which the financial services providerbelongs.
(4) Within fifteen days from the date when the decision of the
Arbiter is notified to the parties, either party, with notice t o the
other party, may request that the Arbiter give a clarification of the
award, or request the Arbiter to correct any errors in computat ion
or clerical or typographical errors or similar error contained in the
decision of the Arbiter. The Arbiter shall give such clarificat ion or
make any necessary correction within fifteen days from the rece ipt
of a party’s request.
Appeal and 
enforceability.27. (1) The decision reached by the Arbiter, including any
interlocutory decisions, may be subject to appeal by either par ty. 
Cap. 12.(2) ( a) The appeal from a decision as referred to in sub-article
(1) shall lie to the Court of Appeal (InferiorJurisdiction) constituted in terms of article 41(9) of the
Code of Or ganization and Civil Procedure .
(b) Appeals from interlocutory decisions may only be
entered after the final decision.
Cap. 12.(3) An appeal to the Court of Appeal (Inferior Jurisdiction) in
terms of article 41(9) of the Code of Organization and Civil
Procedure shall be filed in the registry of the said Court within
twenty days from the date when the decision of the Arbiter isnotified to the parties or, in the event that a request for cla rification
or correction of a decision is requested in terms of article 26 (4),
from the date when such interpretation or clarification or corr ection
made by the Arbiter shall be notified to the parties, and such an
appeal shall be regulated by the rules of court made under arti cle 29
of the 
Code of Or ganization and Civil Procedure .
(4) Where no appeal is filed by any party, the decision of the
Arbiter shall become res judicata .
(5) A copy of such a decision shall be provided by the Arbiter
to the Board. Such decisions shall be held in an appropriateRegister, which Register shall be accessible to the public uponrequest.
(6) After the decision of the Arbiter becomes res judicata  a s
stipulated in sub-article (4), if in the Arbiter’s opinion ther e is
substantial evidence of any significant breach of duty ormisconduct on the part of a financial services provider, or anycriminal conduct of any of the parties, the Arbiter shall refer  the
matter to the competent authorit ies to take any further appropr iate
action, if any, according to law.
Cap. 12.(7) A decision of the Arbiter that has become res judicata , the
terms of settlement recorded by the Arbiter in terms of article22(7)(c)(ii) and a decision of the Court of Appeal (InferiorJurisdiction), shall constitute an executive title in terms of article
253 of the 
Code of Or ganization and Civil Procedure .
Procedure relating 
to request for information.28. (1) Any request for information shall be made by an
eligible customer or financial services provider to the Office orally
20 [CAP. 555. ARBITER FOR FINANCIAL SERVICES
or in writing.
(2) A request for information under sub-article (1) shall be
carried out by the officers appointed by the Arbiter under arti cle
19(4), from the list of officers held by the Board.
(3) In carrying out the function under sub-article (2), the
officer shall regulate his own procedure.
(4) The findings on the request for information given by the
officer shall be notified to the Board, and communicated to theperson who lodged the request for information within thirty day s
from the date of its receipt by the Office by whatever means, e ven
informally.
(5) The findings of any request for information shall only be
informative in nature, and may not be brought as evidence in a law
suit before any court or tribunal.
(6) The Minister may, after consultation with the Arbiter and
the Board, make regulations to give better effect to the provis ions
of this article.
PART VI
Miscellaneous
Delegation of 
functions.29. (1) The Arbiter may delegate in writing to any person
holding any office under him any of his powers under this Act,except this power of delegation and the power to take decisions  and
adjudicate.
(2) A delegation of functions under this Act shall be without
prejudice to the exercise of those functions by the Arbiter, an d shall
be revocable by the Arbiter at will.
Consideration of 
similar complaints.30. The Arbiter may, if he thinks fit, treat individual complaints
made with the Office together, provided that such complaints ar e
intrinsically similar in nature.
Immunity. 31. Except as otherwise stated in this Act, the Office of the
Arbiter and the Arbiter shall enjoy full immunity from any civi l or
criminal action for any act or omission in or arising from theexecution of their official duties unless it is shown that the person
concerned acted in bad faith.
Offences and 
penalities.32. (1) Any person who -
(a) fails to comply with any order given by the Arbiter
shall be guilty of an offence against this Act and shallon conviction be liable to a fine ( multa ) of not less
than five hundred euro (€500) and not more than onethousand euro (€1,000);
(b) obstructs the Arbiter in the exercise of the powers
conferred by this Act shall be guilty of an offenceagainst this Act and shall be liable, on conviction, to afine ( multa ) of five hundred euro (€500);
(c) when summoned to give evidence before the Arbiter or
any officer under this Act, gives information knowing
      
ARBITER FOR FINANCIAL SERVICES [CAP. 555. 21
that such information is false or misleading, shall be
guilty of an offence against this Act and shall be liable,on conviction, to a fine ( multa ) of five hundred euro
(€500).
Cap. 9.(2) Proceedings against any person for any offence as is
mentioned in sub-article (1) shall be instituted before the Cou rt of
Magistrates (Malta) or the Court of Magistrates (Gozo), as the case
may be, as courts of criminal judicature in accordance with theprovisions of the  
Criminal Code .
Power to make 
regulations.
Amended by:
XVI. 2017.89.33. The Minister may, in consultation with the Arbiter and the
Board, make regulations:
(a) to establish the procedure for the filing and handling
of complaints;
(b) to establish the procedure for the investigation of
complaints;
(c) to establish the procedure for the adjudication of
complaints;
(d) to establish the levies and charges payable under this
Act and fees in respect of professional or consultancy
services rendered to customers in relation to claims orproceedings under this Act;
(e) to establish the persons or bodies to whom this Act
shall not apply;
(f) to specify circumstances in which the Arbiter may
dismiss a complaint without considering its merits;
(g) to specify the place or places at which the Arbiter is
required to make available copies of its findings,decisions and any report that the Arbiter is required toprepare;
(h) to give better effect to any of the provisions of this Act,
and for the better enforcement thereof; and
(i) to make regulations to transpose, implement and give
effect to the provisions and requirements of Directives,Regulations and any other legislative measures of theEuropean Union requiring transposition and, orimplementation, as they may be amended from time totime, including any implementing measures that havebeen or may be issued thereunder.
Designation of 
authority for the purposes of Directive 2013/11/EU.
Added by:
XVI. 2017.9034. The Minister shall be vested with authority for the
purposes of Directive 2013/1 1/EU  of the European
Parliament and of the Council on alternative disputeresolution for consumer disputes to appoint the ADRentity for financial services as defined therein.