meta_id 3089709

On April 22, 2026, the Malta Financial Services Authority (MFSA) sent a "Dear CEO" letter to all licensed credit institutions in Malta. The letter outlined key findings and supervisory expectations following a thematic review of complaints-handling processes. During the first half of 2025, the MFSA conducted an outcomes-based thematic review, assessing six retail credit institutions against the requirements of Banking Rule BR/22 on Complaints-Handling Procedures for Credit Institutions . This examined governance structures, procedural safeguards and operational standards, including policies for managing complaints, registers of complaints, internal follow-up procedures, provision of information and timelines for responding to complaints. The letter outlines the MFSA’s key findings from the thematic review, as well as its expectations of credit institutions. It provides guidance and examples of good practice to help institutions enhance the effectiveness, transparency, and overall governance of their complaint-handling processes. The MFSA’s key findings covered areas such as: Complaints management policy: the MFSA found that one institution submitted only a draft policy, indicating that it did not have a finalised and approved policy in place, which is in contravention of the expectations set out in Banking Rule BR/22 for credit institutions. The MFSA expects credit institutions to maintain a fully approved and finalised policy in accordance with the requirements set out in Banking Rule BR/22, which has been in effect since March 5, 2020. The MFSA expects credit institutions to maintain a fully approved and finalised policy in accordance with the requirements set out in Banking Rule BR/22, which has been in effect since March 5, 2020. Registration of complaints: the MFSA noted that several registrants did not fully comply with the requirements set out in Rule 8 of Banking Rule BR/22. Several of the registers fell short of meeting the expected standards and specific obligations mandated in the Banking Rule. The MFSA expects credit institutions to establish clear internal procedures that distinguish between matters requiring formal treatment and those that do not. The MFSA highlights the need for credit institutions to address these inconsistencies, ensure accurate and complete reporting, and adhere fully to the regulatory framework established under Rule 8 of Banking Rule BR/22. The MFSA expects credit institutions to establish clear internal procedures that distinguish between matters requiring formal treatment and those that do not. The MFSA highlights the need for credit institutions to address these inconsistencies, ensure accurate and complete reporting, and adhere fully to the regulatory framework established under Rule 8 of Banking Rule BR/22. The procedure for responding to complaints: the MFSA identified several deficiencies relating to the treatment of verbal complaints, the clarity of wording used in delay notifications, acknowledgement requirements and complaint resolution timelines. The MFSA expects all credit institutions to ensure that their complaints handling procedures are fully aligned with regulatory requirements and clearly documented within their internal policies. Institutions are expected to update their policies to reflect the complaint-resolution timelines set out in Banking Rule BR/22, eliminate ambiguities, ensure consistency and provide clear guidance to staff. This will safeguard transparency, accuracy and fair treatment of clients throughout the complaint-handling process. The MFSA expects all credit institutions to ensure that their complaints handling procedures are fully aligned with regulatory requirements and clearly documented within their internal policies. Institutions are expected to update their policies to reflect the complaint-resolution timelines set out in Banking Rule BR/22, eliminate ambiguities, ensure consistency and provide clear guidance to staff. This will safeguard transparency, accuracy and fair treatment of clients throughout the complaint-handling process. As part of the review, the MFSA identified several good market practices, including: Providing several accessible channels, such as telephone, email, online forms, mobile applications and branch visits, to allow customers to choose the method which is most convenient for them. Clear guidance provided on the credit institution’s website on how to lodge a complaint and what steps the customer can expect throughout the process. Ensuring that complaints are captured and recorded at the first point of contact, rather than customers being redirected unnecessarily. The MFSA expects all credit institutions falling within the scope of Banking Rule BR/22 – Complaints Handling Procedures for Credit Institutions to adhere strictly to the rule's requirements and address the MFSA's expectations, as set out in the letter. Credit institutions are encouraged to conduct a comprehensive gap analysis to identify any discrepancies between their existing practices and the regulatory obligations set out in Banking Rule BR/22. This will enable them to implement any necessary enhancements in a timely manner to meet the prescribed standards.