Issue link: https://maltatoday.uberflip.com/i/1527938
9 maltatoday | WEDNESDAY • 16 OCTOBER 2024 BUSINESS THE MFSA monitors marketing material published by licensed entities to promote their finan- cial products to protect consum- ers and maintain a level playing field among regulated firms. Although the publication of such adverts does not require pre-approval by the MFSA, li- censed entities are to ensure that prior to issuing such ad- verts, these are in line with the applicable regulatory require- ments. Where, in its monitoring ac- tivities, the Authority consid- ers that an advertisement is unfair, unclear or misleading, it reaches out to the relative li- censed entity to request adjust- ments or, at times, withdrawals of non-compliant marketing materials until such time as these amended. The outcome from the moni- toring that has been carried out by the MFSA in 2023 is the fo- cus of the latest edition in the series "The Nature and Art of Financial Supervision". In 2023, the MFSA reviewed 359 social media adverts issued by investment firms, insurance undertakings, and credit insti- tutions. Of these, 40 cases required further clarification, with 30 resulting in amended adverts, and one case resulting in the withdrawal of the marketing communication. The main findings requiring the Authority's intervention were related to missing infor- mation, misleading communi- cation on the nature and the features of the product, miss- ing disclaimers and/or risk warnings, and misleading use of gifts, rewards, or other in- centives. A total of 35 websites were also reviewed, and common issues such as incorrect or in- complete information about EU operations, licensing state- ments, target audiences, and complaint procedures were identified. The report highlights an in- crease in the use of gifts, priz- es, and lotteries in financial promotions, emphasising their potential for misleading con- sumers. The MFSA also observed an increase in the promotion of Insurance-Based Investment Products (IBIPs) using terms like "guaranteed" without suf- ficient disclosures about the nature and limitations of such guarantees. Dr Sarah Pulis Head of Con- duct Supervision said the MF- SA is committed to upholding the highest standards of trans- parency and integrity in finan- cial marketing. "This publication underscores our commitment to protecting consumers by ensuring that marketing communications are clear, fair, and not misleading," she said. "The regulation and super- vision of financial promotions are crucial for consumer pro- tection, ensuring that consum- ers are provided with the nec- essary information from the beginning of their journey to avoid being misled into buying financial products or services that do not meet their objec- tives, expectations, and needs." MFSA monitoring reveals increase in use of gifts and prizes in financial prmotions National lottery plc earns ISO certification for excellence in security and operations NATIONAL Lottery plc, the ex- clusive operator of the national lottery of Malta, has been award- ed the globally respected ISO/ IEC 27001:2022 Certification. This certification acknowledges the company's outstanding com- mitment to security, operational efficiency, and the highest man- agement standards across all its functions. The ISO/IEC 27001:2022 certi- fication is a leading internation- ally recognised benchmark for Information Security Manage- ment Systems (ISMS). National Lottery plc's achievement high- lights its dedication to main- taining a robust, visible, and well-documented security envi- ronment, essential in fostering public confidence and trust in its games and services. Joseph Bonanno, Chief Lottery Officer of National Lottery plc, emphasised the significance of this milestone, "Achieving this certification underscores our strategic efforts to maintain the highest international standards, ensuring the security and integ- rity of our operations. This rec- ognition reaffirms the trust that players, the public, and society can place in our games and ser- vices. Obtaining this certification within such short timeframes since the commencement of our operations is quite remarkable and attests our commitment to quality, security and integrity." Auditors from TÜV HELLAS (TÜV NORD) conducted a com- prehensive audit of National Lottery plc's operations in Mal- ta, evaluating the company's management, organisation, and lottery/betting systems. The audit spanned across multiple departments, including Legal and Compliance, Information Systems, Operations, Sales and Marketing, Corporate Services, Human Resources, and Finance. Key personnel from each area were interviewed to ensure com- pliance with the stringent re- quirements of the certification. A particular highlight of the audit was the inspection of the company's Live Draw Studios, where the auditors reviewed the procedures governing the live draws of its games. This thor- ough examination ensures that the draw processes are managed with integrity, bolstering confi- dence in the fairness and trans- parency of the games offered. Another critical facility audited was the Logistics Centre, which manages key operational aspects such as field operations, techni- cal services, warehousing, logis- tics, and fulfilment for the com- pany's retail network. National Lottery plc said this prestigious international recog- nition will serve as a catalyst in its pursuit of and commitment to responsible gaming, security, and transparency, always prior- itising the interest of players and society at large.