The Office of the Arbiter for Financial Services publishes its Strategic Plan 2025-2027

On Monday, the Minister for Finance Clyde Caruana tabled the Office of the Arbiter for Financial Services’ first three-year Strategic Plan (2025-2027) in Parliament.

The strategic plan specifies the objectives of the activities of the office for the three years concerned, and the nature and scope of the activities to be undertaken.

The office was set up by law in 2016 to mediate, investigate and adjudicate complaints filed by customers against all types of financial services providers.

The office’s previous annual strategic plan focused on specific organisational objectives to enhance operational efficiency. Through its annual plan, it managed to bolster its capabilities, streamline workflows and communication channels, as well as optimise processes to ensure maximum efficiency while maintaining dispute resolution standards and value-added services. The three-year plan is built on this foundation.

Following amendments to the act, these plans no longer need to be published annually. However, the office is still required to submit financial estimates for the following year annually.

So, what are its priorities?

“As the financial services landscape is evolving in a dynamic manner, the office’s strategic course for the upcoming three-year planning cycle provides the flexibility to modify its annual operating plans in response to circumstances,” the office said.

The plan is built on six pillars to guide the office to deliver an effective, efficient and trusted financial redress service.

First pillar:  

The first priority for the office is to deliver a high-quality dispute resolution service that is, and is perceived to be fair, impartial and timely.

By leveraging necessary tools, engaging with complainants and providers, and promoting alternative redress techniques, the office is aiming to deliver efficient, responsive and impartial services to all parties involved.

Within the remit of the first pillar, the office plans to continue facilitating the submission of electronic complaint forms and documents through a secure online environment. Among other action points, the office highlighted its intention to promote and encourage the resolution of complaints through mediation, following the trend of increased success rates at this stage.

Second pillar:

The second pillar aims to improve consumer accessibility to ensure its services are easy to use and available to all.

The office acknowledged that many consumers who benefit from its assistance might not be aware of its role and how to access its services. To address this, it will expand its outreach efforts, particularly to vulnerable persons, and make information easy for consumers to find and understand.

Additionally, it plans to collaborate with stakeholders and leverage different communication channels to ensure that all consumers know they have a trusted, independent resource to turn to when financial disputes arise. This includes consumer groups, industry organisations, professional bodies and other stakeholders.

Third pillar:

The third pillar is to enhance visibility and share insights, raise awareness and promote best practices.

The office holds an important position within the financial regulatory system by investigating and resolving consumer complaints against financial services providers. As an alternative dispute resolution body, it provides valuable insights and intelligence that can help identify weaknesses, potential breaches of conduct rules, and systemic issues that could result in widespread consumer harm.

In light of this, the office committed itself to various action points including organising a hybrid conference open to all stakeholders shortly after the Annual Report, during which the Arbiter will share experiences, insights and best practices observed during investigations and decisions.

Additionally, in cases of complaints related to common issues, such as fraudulent payment schemes, the office will enhance transparency by issuing communication through detailed technical notes explaining the criteria on which the Arbiter based his decisions.

Fourth pillar:

Within the next three years the office plans to influence policy and promote best practices to strengthen the financial services sector.

Through active collaboration with financial regulators and beyond, the office aims to address systemic issues, support regulatory change, and foster a culture of continuous improvement within the financial services sector in Malta and beyond.

In this pillar, the office highlighted its intention of continuously monitoring and analysing complaint data to identify emerging trends, potential risks, and areas for improvement in the financial services sector while sharing insights with stakeholders.

Furthermore it will be collaborating with and provide insights to the Government, financial regulators, consumer protection agencies and other relevant bodies on policy development and improvements to the financial consumer regulatory framework.

Fifth pillar:

In its fifth pillar, the office aims to update legislation to ensure conformity with and relevance to address evolving issues and maintaining its effectiveness.

It expressed its belief that legislation is not a static instrument, and it must adapt and evolve to reflect the realities of its operation over time.

Therefore, each year, the Arbiter, in consultation with the Board, will evaluate aspects of the office’s operations and complaints-handling processes to identify any necessary amendments to its enabling Act.

This review will assess whether legislative updates are required to ensure the office can effectively fulfil its mandate and address emerging trends and challenges in the financial services sector. Any proposed amendments will be submitted to the Minister for Finance for consideration. Once legislative changes are enacted, the office will promptly implement them and communicate the updates to stakeholders.

Sixth pillar:

Its final pillar focuses on upholding a sound governance and administrative structure to ensure accountability, transparency and operational excellence.

Here, the office stated that it will foster continuous staff training and development through induction programmes, external courses and regular staff briefings on financial services, complaint resolution techniques and customer service standards.

Additionally, it will maintain accountability by continuously reviewing its organisational structure to ensure effective internal and external communications and optimal coordination of activities.