S.L. 330.7 Art. 5Prior information to be provided to consumer.

(1) Where a supplier and a consumer are in communication regarding the conclusion of a distance contract and in reasonable time before the consumer is bound by a distance contract or offer, the supplier shall, in a clear and comprehensible manner appropriate to the means of distance communication used, provide the consumer with information concerning the supplier, the financial services involved in the offer, the nature of the distance contract and the forms of redress available, as follows:

(a) Information regarding the supplier:

(i) the identity and the main business of the supplier, the full geographical or main business address where the supplier is established and any other geographical or business address relevant for the customer’s relations with the supplier;

(ii) the identity of the representative of the supplier established in the consumer’s country of residence, being within a Member State or EEA State and the geographical or full business address relevant for the customer’s relations with the representative in such State, if such a representative exists;

(iii) when the consumer’s dealings are with any professional other than the supplier, the identity of this professional, the capacity in which he is acting in his dealings with the consumer, and the full geographical and main business address relevant for the consumer’s relations with such professional;

(iv) where the supplier is a body corporate registered in a companies register, or in any case the supplier is registered in a trade or similar public register, the register in which the supplier is entered and the supplier’s registration number or an equivalent means of identification in that register; and

(v) where the supplier’s activity is subject to a licence or any other authorisation scheme, the particulars of the relevant supervisory authority;

(b) Information regarding the financial service:

(i) a description of the main characteristics of the financial service which is the subject of the offer;

(ii) the total price to be paid by the consumer to the supplier for the financial service, including all related fees, charges and expenses, and all taxes paid via the supplier or, when an exact price cannot be indicated, the basis for the calculation of the price enabling the consumer to verify it;

(iii) where relevant, clear and specific notice indicating that the financial service is related to instruments involving special risks related to their specific features or the operations to be executed or whose price depends on fluctuations in the financial markets outside the supplier’s control and that historical performances are no indicators for future performances;

(iv) notice of the possibility that other taxes and, or costs may exist that are not imposed by or paid through the supplier;

(v) any limitations of the period for which the information provided is valid;

(vi) the arrangements for payment and for performance; and

(vii) any specific additional cost for the consumer of using the means of distance communication, if such additional cost is charged;

(c) Information regarding the distance contract:

(i) the existence or absence of a right of withdrawal or cancellation in accordance with regulation 7 and, where the right of withdrawal exists, its duration and the conditions for exercising it, including information on the amount which the consumer may be required to pay on the basis of regulation 8(1), as well as the consequences of non-exercise of the right of withdrawal;

(ii) the minimum duration of the distance contract in the case of financial services to be performed permanently or recurrently;

(iii) information on any rights the parties may have to terminate the contract early or unilaterally by virtue of the terms of the distance contract, including any penalties imposed by the contract in such cases;

(iv) practical instructions for exercising the right of withdrawal indicating, inter alia, the address where the notification of a withdrawal should be sent;

(v) the Member State or EEA State whose laws are taken by the supplier as a basis for the establishment of relations with the consumer prior to the conclusion of the distance contract;

(vi) any choice of law or choice of jurisdiction clause;

(vii) in which language, or languages, the contractual terms and conditions, and the prior information referred to in this regulation are supplied, and furthermore in which language, or languages, the supplier, with the agreement of the consumer, undertakes to communicate during the duration of this distance contract;

(d) Information regarding the right to redress:

(i) details regarding the procedure for lodging a complaint to the supplier and the relevant contact details of the office responsible for complaints;

(ii) that the Arbiter offers an out-of-court complaints mechanism for the consumer that is party to the distance contract and the methods for having access thereto;

(iii) the existence of any other out-of-court redress mechanism available to the consumer and methods for gaining access thereto; and

(iv) any compensation schemes or other compensation arrangements or guarantees funds as may be applicable:

Provided that paragraphs (a), (b)(i), (b)(ii), (c)(ii), (c)(iii), (c)(vi), (c)(vii), (d)(i), (d)(ii) and (d)(iii) shall not apply to suppliers which are payment service providers:

Provided further that Articles 44, 45, 51 and 52 of the Payment Services Directive as transposed in directives issued by the Central Bank under the Central Bank of Malta Act shall also apply to suppliers which are payment service providers.

(2) The information required in subregulation (1) shall be provided with due regard to the principles of good faith in commercial transactions, and any legislation governing the protection of those who are unable to give their consent, such as minors. The supplier must make clear the commercial purpose of the information given.

(3) (a) In the case of voice telephony communications the identity of the supplier and the commercial purpose of the call initiated by the supplier shall be made explicitly clear at the beginning of any conversation with the consumer:

Provided that, subject to the explicit consent of the consumer, only the following information shall need to be given:

(i) the identity of the person in contact with the consumer and that person’s link with the supplier,

(ii) a description of the main characteristics of the financial service,

(iii) the total price to be paid by the consumer to the supplier for the financial service including all taxes paid via the supplier or, when an exact price cannot be indicated, the basis for the calculation of the price enabling the consumer to verify it;

(iv) notice of the possibility that other taxes and, or costs may exist that are not paid via or imposed by the supplier;

(v) the existence or absence of a right of withdrawal in accordance with regulation 7 and, where the right of withdrawal exists, its duration and the conditions for exercising it, including information on the amount which the consumer may be required to pay on the basis of regulation 8(1).

(b) The supplier shall inform the consumer in the telephone communication that other information is available at the latter’s request and shall explain the nature of this information. In any event, the supplier shall provide the full information when fulfilling the obligations under regulation 6.

(4) During the pre-contractual phase, the supplier shall ensure that information on contractual obligations to be communicated to the consumer is in conformity with the contractual obligations which would result from the law presumed to be applicable to the distance contract if such distance contract were concluded.

(5) The provisions of this regulation shall be without prejudice to any other legislation, regulation or rules governing financial services which provides for prior information requirements additional to those listed in this regulation.