BusinessToday Previous Editions

3 NEWS 24.09.2020 PAUL COCKS A charge introduced this month by Bank of Valletta – reportedly for when account balances fall below €200 – does not actually apply for each ac- count held by the customer, but only on the average balance of all the cus- tomer's savings accounts, BusinessTo- day has learned. Through September, many BOV cli- ents complained that they were being charged €10 if the balance in the ac- count fell below €200. Amongst the most vocal in their complaints to this newspaper were senior citizens, who said they were made to pay the charges since they would withdraw their entire pension each month to be able to live off it. However when contacted, Claudette Pace, Manager of BOV's Market Intel- ligence Unit, explained that the €10 was actually not charged each month, nor did it apply for each of a client's accounts. "As from 1 September the Bank in- troduced a charge of €10.00 per quar- ter per customer – not per account – for combined accounts average book balance of less than €200," she told BusinessToday. "e charge applies if the combined average book balance of all the savings accounts held by a customer during the previous quarter is less than €200.00." As to why the charge was intro- duced, Pace said the bank's aim was to encourage customers to keep a mini- mum of €200 in their accounts, since bank accounts and services cost mon- ey, especially when kepy with zero or minimal accounts. She did acknowledge that customers who only had only savings account and who needed to withdraw all the funds each month would be affected by the introduction of the charge. "We understand that some of our customers may not have the minimum average amount, and we are guiding such customers to close any extra ac- counts which are not being utilised and opt for a Basic Payment Account, so as to avoid the charge," she said. With a BOV Basic Payment Account, customers can keep track of expens- es, pay bills and receive money. State- ments are issued at regular intervals. Customers can also manage their ac- count using any of the Bank's self-ser- vice banking channels, which include ATMs, BOV Internet Banking and BOV Mobile. The new charge does not apply to BOV Club Accounts, Young Savers Accounts and Basic Payment Ac- counts. BOV new charge applicable on customer's combined average book balance SAVINGS ACCOUNTS WITH LESS THAN €200 AN accountant has been fined €150,000 and banned for 10 years from introducing clients to licensed investment firms. e Malta Financial Services Authority said Dennis Muscat had performed unlicensed in- vestment services by providing investment services without a licence on a regular and habit- ual basis. Back in June 2020, the MFSA had already advised that Mus- cat was not licensed or author- ised to provide any financial services in Malta. "Financial services may in- clude the provision of in- vestment advice, portfolio management, reception or transmission of orders and acting as nominee. e provi- sion of these services as well as other financial services require prior authorisation from the MFSA. "Certain legal arrangements, such as having in place certain powers of attorney given to individuals to undertake these services on a wide scale, are considered to be a means to attempt to circumvent the stat- utory requirements applicable to persons or entities which would require prior author- isation from the MFSA," the MFSA had said of Muscat. e MFSA had directed Muscat to cease the provision of any financial services which required prior authorisation from the MFSA, as well as refrain from destroying any documentation, related to the introductory and other finan- cial services he had provided to third parties. Accountant fined €150,000, gets 10-year ban

• Cover