Selected issues of the Office of the Financial Arbiter : an analysis

Abstract

The European Parliament and Council of Ministers established a framework for EU-wide alternative consumer dispute resolution bodies in order to harmonise and improve the consumer to business dispute resolution structures, the European Union Directive 2013/11/EU on Alternative Dispute Resolution for Consumer Disputes ("CADR"). This Directive was transposed into Maltese law by virtue of Legal Notice 374 of 2015.This CADR directive was one of the more important source for the enactment of The Arbiter for Financial Services Act, Chapter 555 of the Laws of Malta.

The Arbiter for Financial Services Act came into effect on the 18th April 2016. The object of the law is to receive, consider, investigate and adjudicate complaints from eligible customers who have a cause for complaint in relation to a financial service provided from a financial services provider. This Alternative Dispute Resolution entity is an out of court forum, which is intended to be inexpensive, expedient, informal and that should deliver judgements in a much shorter period of time than ordinary court procedures. The Arbiter for Financial Services has the competence to issue binding and executive decisions, provided they have not been appealed, making this the first ADR entity in Malta to have this power. There are a number of controversial and practical and legal issues relating to the Arbiter for Financial Services. This Term Paper does not pretend to deal with all of them, but merely focuses on three issues which are considered to be particularly important. The aim of this analysis is to propose any possible remedies or amendments to these issues.