MFSA issues notice for local consumers currently serviced by UK financial services providers

UK based Financial Services Providers will be able to continue to provide financial services (Investment Services, Insurance Services, and Banking Services and/or Payment Services) in Malta and in the rest of Europe for the duration of the transition period i.e. until the end of December 2020.

In a cautionary statement, the Malta Financial Services Authority (MFSA) stressed that after this date, UK Financial Services Providers would need to be authorised in Malta or in another EU Member state to continue to provide their services locally.

“We expect that UK based Financial Services Providers within the Investment Services, Insurance Services and Banking, and/or Payment Services industries should be taking the necessary steps to prepare for the UK’s withdrawal from the EU in order to safeguard the interests of their clients.

“We also expect that such entities are providing you with details of their arrangements to ensure continuity of service, after the end of December 2020,” the MFSA said.

With this in mind, the authority stressed that consumers are encouraged to actively engage with UK-based Financial Services Providers with whom they already have an established relationship and request information on the way the contractual arrangements currently in place will change following Brexit.

“It is important that you raise any concerns you may have relating to the services you are currently obtaining from UK based Financial Services Providers and that these are clarified before 31^st December 2020.”

The MFSA said it will continue monitoring developments in this area and will inform the general public with further updates.

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