Restoring investor confidence in the provision of investment services

Abstract

For the purpose of this thesis, it is deemed appropriate to implement a cut-off date in respect of the research carried out and it was established that this should be the 25th of March 2014. Chapter 1 will give an introduction to the basic elements in respect to the field of investment services. It will also outline definitions in relation to investor protection, investment advice and client categorization. Chapter 2 will delve into the concepts of mis-selling and its consequences, such as the civil liability concept of Investment Services Providers. This chapter will also show the different forms of sanctions in case of breach of the over-arching requirement for financial promotions. Chapter 3 deals with the regulatory developments occurring within the European Union in relation to investor protection, following the latest financial crisis, namely Packaged Retail Investment Products and the Key Information Documents. Other new concepts such as that of financial literacy, product intervention, temporary product intervention rules and cyber security will also be discussed. During the discussion of such concepts, it was also deemed appropriate to include various proposals, such as, that, in the case of the publishing of consumer complaints, which could be viewed as a potential way forward in the Maltese context. Chapter 4 tackles the supervisory aspect, whereby the current supervision process, in the Maltese context, is analysed. Proposals in relation to the way forward with respect to the Malta Financial Services Authority are seen contemporarily with the reforms experienced in the United Kingdom. This chapter will also analyse the Conduct of Business regime application within the Malta Financial Services Authority and the roles of the Consumer Complaints Manager (CCM). Chapter 5 combines the analysis made throughout the course of this dissertation and any proposals made through the thesis, which should be considered as an attempt to provide viable recommendations, which may be considered by the legislator, for a better transparent investor protection.