S.L. 378.10 Art. 19Advertising.

(1) Without prejudice to Directive 2005/29/EC, any advertising and marketing communications concerning credit agreements shall be fair, clear and not misleading. In particular, wording that may create false expectations for a consumer regarding the availability or the cost of a credit agreement shall be prohibited.

(2) Without prejudice to the provisions relating to unfair commercial practices under the Act, any advertising concerning credit agreements which indicates an interest rate or any figures relating to the cost of the credit to the consumer, shall include the standard information in accordance with this regulation.

(3) The standard information referred to in sub-regulation (2) shall specify in a clear, concise and prominent way:

(a) the identity of the creditor or, where applicable, the credit intermediary;

(b) that the product advertised is a credit agreement and, where applicable, that the credit agreement will be secured by a hypothec or privilege on residential immovable property, by a right related to residential immovable property;

(c) the borrowing rate, indicating whether this is fixed or variable or a combination of both;

(d) particulars of any charges included in the total cost of credit to the consumer;

(e) the total amount of credit;

(f) the APRC which shall be included in the advertisement at least as prominently as any interest rate;

(g) where applicable, the duration of the credit agreement;

(h) where applicable, the total amount payable by the consumer;

(i) where applicable, the amount of the instalments and the amount of each repayment of credit;

(j) where applicable, a warning regarding the fact that possible fluctuations of the exchange rate could affect the amount payable by the consumer; and

(k) where applicable, a warning concerning the risk of losing the immovable property in the event of non-observance of the commitments linked to the credit agreement.

(4) The information listed in sub-regulation (3) other than that listed in paragraphs (a), (b) or (j) thereof, shall be specified by means of a representative example and shall adhere to that representative example throughout:

Provided that the Director General shall adopt criteria for determining a representative example.

(5) (a) Any advertising concerning credit agreements which include an interest rate or any figures relating to the cost of the credit to the consumer, shall include a clear and concise statement in respect of any obligation to enter into a contract in respect of an ancillary service relating to the credit agreement, in particular an insurance service, where:

(i) the conclusion of that service is compulsory in order to obtain the credit or to obtain it on the terms and conditions advertised; and

(ii) the cost of that service cannot be determined in advance.

(b) The obligation referred to in paragraph (a) shall be advertised in a prominent way together with the APRC.

(6) The information referred to in sub-regulations (3) and (5) shall be easily legible or clearly audible as appropriate, depending on the medium used for advertising and marketing.

(7) The Director General may require the inclusion of a concise and proportionate warning concerning specific risks associated with credit agreements: Provided that the Director General shall notify the MFSA of any such requirements without undue delay: Provided further that the MFSA shall, upon receipt of the notification from the Director General referred to in this sub-regulation, notify those requirements to the European Commission without delay.

(8) This regulation shall be without prejudice to Directive 2005/29/EC.