The Malta Financial Services Authority (MFSA) has launched a new consumer awareness campaign, “Know Before You Sign”, aimed at helping people better understand retirement products, before making long-term financial commitments.
The campaign encourages individuals to take the time to consider whether these products are suitable for their personal needs, financial situation, investment horizon, and individual level of comfort with risk.
“More consumers today are being offered products linked to retirement planning and long-term savings. That is why this campaign encourages people to pause and reflect, ask questions, and make sure they fully understand what they are signing up for before making a commitment,” said MFSA’s Head of Conduct Supervision and Malta’s Financial Literacy Ambassador, Sarah Pulis.
Key Questions to Ask Before Committing
As part of the Know Before You Sign campaign, the MFSA is urging consumers to consider several important questions before committing to a retirement product:
- how the product works
- what it aims to achieve
- whether their money is exposed to market fluctuations
- what charges and fees apply
- how long the commitment lasts
- whether early exit is possible and what penalties, or restrictions, may apply
- whether the product offers enough flexibility to adapt to changing personal or financial circumstances
Warning Signs Consumers Should Not Ignore
The MFSA is also urging consumers to remain alert to possible warning signs when considering retirement products.
These include being pressured to sign quickly, receiving unclear or overly technical explanations, not being given complete documentation, or being presented with potential benefits without a clear, balanced explanation of the risks and long-term obligations involved.
Consumer Rights When Purchasing Retirement Products
As part of the campaign, the Authority is highlighting a number of key consumer rights that apply when purchasing these products. These include the right to receive clear, fair, and not misleading information, the right to be given key product documentation such as the Key Information Document (KID), and the right to be given sufficient time to review the product before making a decision. In many cases, consumers may also benefit from a cooling-off period after purchase.
Supporting Informed Financial Decision-Making
The MFSA is encouraging anyone considering a retirement product, to read all documentation carefully, ask questions where anything is unclear, confirm that the provider is authorised and regulated, and seek independent financial advice where appropriate.
The campaign forms part of the MFSA’s wider commitment to promoting informed financial decision-making and strengthening consumer protection in Malta’s financial services sector.
Members of the public who would like more information about retirement products, or their rights as consumers can visit the MFSA website. Those who wish to raise a concern about a financial service provider may also contact the MFSA for guidance and assistance.
