The Malta Financial Services Authority (MFSA) has found shortcomings in the way financial institutions present and market payment accounts, calling for immediate fixes to ensure customers are not misled.

The regulator’s review examined Fee Information Documents, Statements of Fees, and the accuracy of data on the MFSA’s Payment Accounts Fees Comparison Tool. While most providers met the required EU standards, several gaps were flagged.

One institution failed to present fees in the required format, prompting the MFSA to order corrective action. Some providers had not updated fee data on the comparison tool, leaving outdated products still listed. The Authority also highlighted weak consumer awareness, with many customers still not told that payment accounts are not bank accounts — they do not pay interest and are not protected under the Depositor Compensation Scheme.

The review also found that some providers were using terms like “bank” or “bank account” on websites in ways that could confuse consumers about their regulatory status.

“Consumers must be given clear, transparent and accurate information about the costs and features of payment accounts,” MFSA Chief Officer Supervision Christopher P. Buttigieg said, stressing that the gaps identified must be addressed without delay.

Payment accounts allow customers to deposit, withdraw and make transactions, but unlike traditional bank accounts they are limited in scope. Under Maltese regulations, providers must issue standardised fee documents in advance, provide annual statements free of charge, and keep comparison data current.

The MFSA said it will continue to monitor the sector closely, stepping up engagement and enforcement to safeguard transparency in Malta’s financial services market.