MFSC displeased with new HSBC charges

The financial regulator has expressed its displeasure at the introduction of new charges and the way they were implemented by HSBC Bank and has also asked the Office for Fair Competition to investigate the issue.

The Malta Financial Services Centre reacted to complaints made by various HSBC bank account holders over the decision to impose new terms and conditions on bank accounts.

HSBC informed account holders of a host of charges on bank accounts including a controversial Lm4 fee on bank accounts, which do not have a balance of more than Lm75 over a three-month period. Many clients received the letter during the second week of April despite the new measures taking effect from 1 April 2002. In addition, the Maltese and English versions of the same letter gave conflicting information.

In a statement the MFSC clarified that charges for bank services are not regulated under the Banking Act but still requested the Office for Fair Competition to investigate the new bank charges in accordance with the provisions of the Competition Act.