Frequently Asked Questions


Accounts

  • In order to open an account you just need to be aged 18 years or older. Minor accounts may also be opened by visiting one of our branches.
  • If you are based in Malta, you can open an account by visiting one of our branches. A member of our staff will assist you with the account opening process, which consists of submitting an account application form and providing official identity document (ID card or passport) as well as a proof of address (ID card, recent utility bill or bank statement).

    If you are based abroad or unable to visit one of our branches, you can also open an account online. To do so, you need to visit our website and click on Open an account .

    The documents we require when you apply online are:

    1. An original signed copy of the account application form that you will print at the end of the online application process,
    2. A clear and legible copy of a valid, unexpired identification document that could be either:
      • Your national identity card (copy of front and back),
      • Your passport (copy of photo and details).
    3. A recent (no more than six months old) document clearly indicating your residential address that could be either:
      • An original bank statement,
      • An original utility bill, or
      • An original correspondence from, or document issued by, a central or local government authority, department or agency.

    If you already hold an account with Mediterranean Bank, opening an additional account is a fairly quick process as you will not need to provide all the documentation mentioned above. You will just need to open new account from your Internet Banking, or visit one of our branches

  • No charges are applicable when opening an account with Mediterranean Bank. There are also no charges for the maintenance of your accounts.
  • Different accounts have different minimum amount requirements:

    • NOW Account: minimum amount of 5,000 in the currency of denomination
    • Fixed Term Deposit Account: minimum amount of 5,000 in the currency of denomination
    • Me12 Savings Account: No minimum amount required
    • Me3 Savings Account: No minimum amount required
    • Savings Account: No minimum amount required
    • Investment Cash Account: No minimum amount required
    • tiMe Account: Minimum monthly contribution of €100, minimum balance after 12 month of €3,000
  • Once a Fixed Term Deposit Account is opened, you cannot change the amount deposited, the rate or the term.
  • Should you wish to close an account, please inform us either by calling our Customer Service on (+356) 2557 4400 or through the Bank’s secured messaging system. Upon closure, any outstanding balance together with any interest due, shall be transferred to your account of preference*. Fixed Term Deposit accounts and NOW Accounts cannot be closed prior to the maturity date. Me12 Savings Accounts require a twelve months’ withdrawal notice, while Me3 Savings Accounts require a three months’ withdrawal notice to be closed.

    * With the exclusion of those clients who manage the banking relationship exclusively online and through a linked account, in which case, any balance together with any interest due shall be transferred to the linked account.

  • If you apply for an account online, we will ask you to provide the details of an account in your name that you hold (as a single or joint holder) with a bank in the European Union. We call this linked account because we will link it to your Mediterranean Bank account.

    We will also ask you to send a payment from your linked account in order to activate your account with Mediterranean Bank. Subsequently, when your account is activated, you can transfer money from any account, however any funds sent out of your Mediterranean Bank account may only be sent to your linked account.

    If you would like to remove the linked account feature from your account, you can visit one of our branches and provide an official identity document (ID card or passport).

  • The linked account can be changed by sending a secure message whilst logged on your Internet Banking. The message should contain name of account holder(s), IBAN and BIC/Swift code of your new linked account. You will then have to send a payment of any amount from the new linked account and upon receiving the payment we will change your linked account details.
  • No charges are applicable when opening an account with Mediterranean Bank. Furthermore there are no charges for the maintenance of such accounts. If you would like to see our Tariffs and Charges for Banking Services, please follow this link

  • You can deposit funds by instructing a bank transfer, online or by visiting one of our branches. We also accept cheques, bank drafts and cash. In the case of cash, we may ask you to provide a proof of the source of funds, such as a withdrawal receipt or a declaration letter.
  • In order to comply with European regulations, Mediterranean Bank must apply enhanced due diligence procedures to politically exposed persons. Politically exposed persons are individuals who have been entrusted with a prominent public function or who are closely related to such persons.
  • Mediterranean Bank asks this question in order to comply with the Foreign Account Tax Compliance Act (FATCA), a US law which requires non-US financial institutions to provide the US tax authority (the Internal Revenue Service or IRS) with information on certain US persons with accounts outside of the United States.
    The W-9 Form is used by financial institutions to obtain information from their customers which will be used to report interest and other types of income to the US tax authority.
  • You need to submit a W-9 Form if you are a US citizen, US resident alien or US tax resident. The W-9 form can be found on our website under Support > Document Centre. The W-9 Form can be completed in either blue or black ink. If correction fluid (Tip-ex) or correction tape are used the form will be rejected. Please complete the fields as indicated below.                         

    General Information

    Row 1: Enter your full name Row 3: Check the box which indicates the appropriate tax classification Rows 4 and 5: Enter your permanent address

    Part I: Taxpayer Identification Number (TIN)

    Enter your TIN: for individuals this is the Social Security Number (SSN)

    Part II: Certification

    Sign and date the form, keeping in mind that the US date format is mm-dd-yyyy so for example 25th of September 2012 should be written 09-25-2012.

    Please note that the information above is for guidance purposes only and should be read alongside the official IRS instructions that are available on the IRS website. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.

  • Should the Bank announce a change in interest rates, the interest rate on your existing Fixed Term Deposit Account or NOW Account will remain unchanged as agreed upon opening. Interest rates on other products might change at any time. Any interest rate change will not be effective on the Me12 Savings Account until a year after and on the Me3 Savings Account until three months after a rate change announcement is given by the Bank. If you would like to see our current interest rates, please follow this link.

  • Different accounts have different rules for interest payments:

    • NOW Account: interest is paid to your Savings Account
    • Fixed Term Deposit Account: interest is paid to your Savings Account
    • Me12 Savings Account: interest is paid to your Me12 Savings Account
    • Me3 Savings Account: interest is paid to your Me3 Savings Account
    • Savings Account: interest is paid to your Savings Account
    • Investment Cash Account: interest is paid to your Investment Cash Account
    • tiMe Account: Interest earned together with bonus incentive will be used to purchase the Balanced Model Portfolio

    You can contact our Client Service Centre on (+356) 2557 4400, write a secure message or visit one of our branches if you would like your interest to be paid to a different account.

  • Different accounts have different rules for interest payments:

    • NOW Account: all interest is paid 10 working days after opening the account
    • Fixed Term Deposit Account: you can opt for your interest to be paid monthly, quarterly, semi-annually, annually or only once at maturity of the deposit
    • Me12 Savings Account: interest is paid semi-annually on the last working day of June and December
    • Me3 Savings Account: interest is paid semi-annually on the last working day of June and December
    • Savings Account: interest is paid semi-annually on the last working day of June and December
    • Investment Cash Account: interest is paid semi-annually on the last working day of June and December
    • tiMe Account: Interest earned together with bonus incentive will be used to purchase the Balanced Model Portfolio
  • Yes, you can instruct us to send a fixed amount of money at regular intervals to an account of your choice. If you would like to set up a standing order, you may contact us on (+356) 2557 4400 or visit one of our branches.
  • The Bank will send you a letter three weeks prior to the maturity date to remind you of the upcoming maturity of your account. By default, unless instructed otherwise by you, funds held in your Fixed Term Deposit/NOW Account will be automatically transferred to your Savings Account.
  • You can withdraw funds from your Me3 Savings Account subject to a three month notice by instructing a bank transfer online (Move Money > Between own account), by visiting one of our branches or by contacting our Customer Service on (+356) 2557 4400.

  • You can withdraw funds from your Me12 Savings Account at any time subject to a twelve month notice period by sending a secure message through our Internet Banking platform, by visiting one of our branches or by contacting our Client Service Centre on (+356) 2557 4400. You cannot make a withdrawal request in the first three months since account opening.

  • No withdrawals can be made from the tiMe Account. 

  • You are required to make regular monthly contributions over the initial twelve-month period (thereafter the monthly contributions are discretionary and will be invested directly into the Balanced Model Portfolio). If for any reason you are unable to make one or more contributions, you should discuss this with one of our branch’s representatives.

  • At account opening you will be asked to take a test to ascertain whether the product is appropriate for you. If the Balanced Model Portfolio is not deemed appropriate for you and you still wish to proceed, you will be asked to sign a Risk Warning.

  • The tiMe Account will not be visible on the Internet Banking platform. Once the account is used to purchase a Balanced Model Portfolio, that portfolio will be visible online.

  • You will receive a statement of the tiMe Account annually. We will send you an email or letter when the tiMe Account is used to purchase a Balanced Model Portfolio.

  • The Balanced Model Portfolio must be held for a minimum of three months. After this period, you can sell the Balanced Model Portfolio through our Internet Banking platform.

  • In the event that an account holder is deceased, all accounts in his or her name will be blocked until the heirs' notary provides the documentation needed to liquidate the funds. An administration fee will apply as specified in our Tariffs & Charges Schedule for Banking Services

Complaints

  • What you have to say is important to us. If you have a complaint please email us at info@medbank.com.mt, call us on (+356) 2557 4400 or send us a letter to the following address:

    Mediterranean Bank plc
    10, St. Barbara Bastion
    Valletta

    VLT 1961

    Malta

     

    You may further address your complaint as described in our General Terms and Conditions.

Corporate Actions

  • A mandatory event does not require any investment decision from you, it is simply for your information. An example of a mandatory event would be a spin-off, where part of a company is spun-off to create a new company. If you have shares in the original company, you will receive shares of the new company whilst retaining your original investment.

    A voluntary event invites you to take part in an offer, but you may also decline to take part, in which case the default option will apply. Usually the default option for a voluntary event is to ‘take no action’. A tender offer is an example of a voluntary event, where a third party wants to buy a portion of equity in your invested company, you will have the option to tender all or part of your investment. The event could eventually become a mandatory takeover where the third party attempts to buy the entire share capital leaving you without the choice to tender or not.

    You may refer to our glossary for further information on particular corporate action event types.

  • You should await contact from us. You will receive a secure message in your online secure inbox for any corporate actions that require your attention.

    You may be required to make a decision for certain corporate actions. If this is the case then we will indicate which options are available. Your instruction must be delivered by return secure message. We will also confirm the date by which your response must be received on our corporate action notification.

  • Notifications of corporate actions will be sent to your online secure inbox which you can access when logged into your account. You will also be sent an email alert to let you know that you have a new message to read.

  • No, it is free to participate in corporate actions.

  • You investment is safe kept in our nominee account, this allows us to give you the lowest execution fees under our scalable business model. However this means we have certain restrictions on the corporate action types we can offer.

    Below are some corporate actions which are currently not offered:

    • Dividend reinvestments/dividend options on international markets. Where possible we will offer this option on the local Maltese market.
    • Odd lot offers, typical in the United States market, e.g. mini tenders.
    • Non official offers, or offers that are not supervised or regulated by an official entity.
    • French loyalty bonus offers.
    • Company meetings, proxy voting and consent offers.
    Unregulated/unprotected corporate actions offered by third parties will also not be offered.
  • Send us your instruction online by logging onto your account and sending us a return secure message. Instructions must be very clear and not be subject to interpretation, clearly stating the option number you are opting for.

  • The company's registrar will set a deadline for security holder responses to a corporate action, we must ensure that all the instructions of our clients reach the registrar by this deadline. Therefore our deadline will always be before the company registrar's deadline to give us time to process and forward on client instructions.

  • Our investment services are on an 'execution-only' basis. This means we shall not provide personal financial advice about the suitability of an account or an investment you hold within it.

  • If you have missed our deadline then the default instruction option will be applied on your investment.

  • If you wish to alter an instruction you have sent us please contact us on (+356) 2557 4400 or send a replacement online secure message and we will do our best to accommodate your request. If your election has already been acted upon, and forwarded to the company's registrar, this may not be possible.

  • The company's registrar will often set a default election option for security holders to be used when no reply is received. We will tend to use the same default option however there may be some occasions when we will set a different default option. We will always advise the default option on our corporate action notifications.

  • This will vary, but generally will not be until the company has sent out the official documentation to shareholders. We will not contact clients as a result of press releases or market speculation. We also validate and second source the corporate action before distributing the information to you.

  • If you believe you should have received correspondence from us please contact us on (+356) 2557 4400 or send a secure online message.

  • Explanations can be found in the official documents issued by the company. These documents are usually located directly on the official company website, or on the stock exchange website which the company is listed on.

  • Your investment is safe kept in our nominee account, this allows us to give you the lowest execution fees under our scalable business model. However this means we cannot offer the ability to submit votes or to attend company meetings.

  • Any new shares or rights resulting from a corporate action will be automatically credited to your Investment Account on the date specified in the corporate action notification. However due to market or operational constraints there may be a delay of 1 or 2 days.

  • Cash entitlements resulting from corporate actions will be paid straight to your Investment Cash Account, in the same currency of denomination of the security. Should you not have an Investment Cash Account in the currency of denomination of the security, a new Investment Cash Account will be automatically opened to allow processing of the entitlement.

  • If you received an entitlement of bonus shares in relation to your investment in a Maltese equity and you wish to request a tax certificate, you can do so by calling us on (+356) 2557 4400, sending a secure online message or contacting your relationship manager.

  • We do not provide cash dividend/coupon tax certificates however, your statement is sufficient for submitting your local and foreign withholding tax obligations to the Malta Inland Revenue Department.

Investments

  • In order to open an account you just need to be aged 18 years or older. Minor accounts may also be opened by visiting one of our branches.
  • For security reasons outward payments are subject to a daily limit in the amount of €30,000. Payments between your Mediterranean Bank accounts are not limited. If you want to transfer an amount in one day that is larger than €30,000, please visit one of our branches and we will provide you with further assistance.
  • Your feedback is important to us. If you have a complaint you may email us at info@medbank.com.mt, call us on (+356) 2557 4400 or send us a letter to the following address:

    Mediterranean Bank plc
    10, St. Barbara Bastion
    Valletta
    VLT 1961
    Malta 

    You may further address your complaint as described in our General Terms and Conditions.

  • If you are based in Malta, you can open an Investment Account by visiting one of our branches . A member of our staff will assist you with the Investment Account opening process, which consists of submitting an Investment Account application form and providing official identity document (ID card or passport) as well as a proof of address (ID card, recent utility bill or bank statement).

    If you are based abroad or unable to visit one of our branches, you can also open an Investment Account online. To do so, you need to visit our website and click on Open an account.

    The documents we require when you apply online are:

    1. An original signed copy of the Investment Account application form that you will print at the end of the online application process,
    2. A clear and legible copy of a valid, unexpired identification document that could be either:
      • Your national identity card (copy of front and back),
      • Your passport (copy of photo and details).
    3. A recent (no more than six months old) document clearly indicating your residential address that could be either:
      • An original bank statement,
      • An original utility bill, or
      • An original correspondence from, or document issued by, a central or local government authority, department or agency.

    If you already hold an account with Mediterranean Bank, opening  an Investment Account is a fairly quick process as you will not need to provide all the documentation mentioned above. You will just need to open new Investment Account from your Internet Banking, or visit one of our branches.

  • A Model Portfolio is composed of a basket of funds. By investing in a Model Portfolio, you spread your money over all these funds. This way you can invest efficiently and diversify your portfolio in just a single click.
  • Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia and Asia. They offer an extensive line of products and services for individuals, financial advisors and institutions. Morningstar is highly respected for their independent investment information. Their strength lies in their independent status, expert research and well tested rating and equity scoring models.
  • All Mediterranean Bank accounts are guaranteed up to €100,000 by the Malta Financial Services Authority (MFSA) under the Depositor Compensation Scheme.
  • If you have elected to have tax withheld, Mediterranean Bank will deduct withholding tax on:

    Interest income earned on Savings Accounts, Me3 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts.

    Coupons paid on bonds’ holdings.

    Dividends paid on equities, ETFs and funds’ holdings.

    Capital gains earned from the sale of securities.

    Mediterranean Bank will pay your income/trade consideration net of withholding tax due and remit the withholding tax to the Maltese tax authority. Please note that the information above are for guidance purposes only. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • Mediterranean Bank is a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA).
  • You can transfer your existing portfolio of securities apart from complex financial instruments or other financial instruments which we are unable to accommodate for online trading. You can send us a summary of your portfolio or send a duly filled in Asset Transfer Form which can be found on our website under Support > Document Centre, and we will analyse your holdings to confirm whether or not we can add the securities you hold to our tradable universe of securities.
  • We offer spot, forward, flexible-forward (window) contracts for major currency pairs. In addition, we offer foreign currency accounts as both demand and time deposits, to help make the most of your foreign currency assets.
  • A mandatory event does not require any investment decision from you, it is simply for your information. An example of a mandatory event would be a spin-off, where part of a company is spun-off to create a new company. If you have shares in the original company, you will receive shares of the new company whilst retaining your original investment.

    A voluntary event invites you to take part in an offer, but you may also decline to take part, in which case the default option will apply. Usually the default option for a voluntary event is to ‘take no action’. A tender offer is an example of a voluntary event, where a third party wants to buy a portion of equity in your invested company, you will have the option to tender all or part of your investment. The event could eventually become a mandatory takeover where the third party attempts to buy the entire share capital leaving you without the choice to tender or not.

    You may refer to our glossary for further information on particular corporate action event types.

    • Never give out your personal information over the phone unless you have initiated the call and completely trust the caller. This includes bank account numbers, PINs, your Corporate ID etc.
    • Always question the identity of people/companies that initiate contact with you - via email, mail, telephone or even in person—remember, ID cards, letterheads and business cards can easily be counterfeited.
    • Safeguard bank statements, utility bills and other documents that, potentially, contain sensitive information. Do not simply throw these in the recycling bin—shred them when you no longer require them. Never leave your personal information unattended or out in the open.
    • Reconcile bank accounts regularly. Challenge unauthorized transactions immediately.
  • aa
  • The only way anyone can access your account is by supplying correct login credentials to our online banking website. This is why it is crucial to not let anyone else know these details! If you think someone may know any of your security details, please call our Customer Service at on (+356) 2557 4444 or contact your Relationship Manager.

  • You should await contact from us. You will receive a secure message in your online secure inbox for any corporate actions that require your attention.

    You may be required to make a decision for certain corporate actions. If this is the case then we will indicate which options are available. Your instruction must be delivered by return secure message. We will also confirm the date by which your response must be received on our corporate action notification.

  • Yes. Mediterranean Bank maintains international banking relationships that covers most traded currencies. Any incoming payment you receive can be converted into the currency of your choice. Alternatively, if you have an account in any currency other than Euro, it can be credited with the incoming funds with no further conversion. 
  • We do not charge any fee for transferring securities from your current broker to your account with Mediterranean Bank. In addition, we offer a reimbursement of third party transfer out fees for portfolios above €100,000. More information can be found on our Investment Services Tariffs and Charges.

  • Mediterranean Bank was established in July 2005 as a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA). In July 2009, the Bank was acquired by AnaCap Financial Partners LLP, a UK private equity firm specialising in European financial services, and recapitalised. In 2014 Mediterranean Bank bought Volksbank Malta, a subsidiary of Volksbank Austria providing banking services to the Maltese retail and corporate sectors. In 2015, Medifin Holdings Limited, the holding company of Mediterranean Bank, completed the acquisition of Charts Investment Management Service Limited, a local investment services company, thus further strengthening its presence in the local market. As well as growing locally, Mediterranean Bank has also grown internationally, through its Belgian branch operating an online savings, investment and wealth management platform under the MeDirect brand. MeDirect became a fully licenced Belgian bank in 2015. In 2016, the name of the parent company Medifin Holding Limited was changed to MeDirect Group Limited.

  • Interest income earned on Investment Cash Accounts, Savings Accounts, ME3 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts is not subject to foreign withholding tax. Income from securities issued by foreign companies may be subject to withholding tax in the country where the security was issued. However, a Maltese investor may benefit from a lower foreign withholding tax rate or be entitled to a refund of foreign withholding tax by virtue of the double taxation agreement between Malta and the country where the issuer of the security is located. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • The Depositor Compensation Scheme is a rescue fund for depositors of failed banks which are licensed by the Malta Financial Services Authority. Compensation is paid only if a bank is unable to meet its obligations towards depositors or has otherwise suspended payment. The Scheme is based on the EU Directive 94/19 on deposit-guarantee schemes. The scheme is managed by a single Management Committee which is appointed by the MFSA.
  • The Morningstar Star Rating is derived from a quantitative method in which mutual funds are ranked on the basis of their historical returns (adjusted for risk and costs) over periods of at least three years. These "risk-adjusted returns" are based on the monthly returns of a fund, where downward variations result in a lower score and a consistently good performance is rewarded with a higher score. Another important aspect is costs, making it more difficult for relatively expensive funds to receive a high star rating.

    The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star.  This Star Rating is calculated over periods of the past three, five and ten years.  If possible, Morningstar will also calculate these ratings for all periods in its Overall Morningstar Star Rating
  • Once you open an account with Mediterranean Bank, you can register to use Internet Banking. The service is available 24/7 and is free of charge. In order to register for Internet Banking, you need to visit our website www.medbank.com.mt, click on “Register” and fill in the information requested. If you need further help, click to download our Online Banking Guide.
  • The funds are selected based on their ratings in cooperation with Morningstar. Not only past performance is important, but also the analyst reports for the future. Based on five pillars (management team, fund house, investment process, yields and costs) the Morningstar analysts make an estimate indicating whether the fund has the potential required to outperform similar funds.

  • No charges are applicable when opening an Investment Account with Mediterranean Bank. Furthermore there are no charges for the maintenance of such account. Click the following link to view our Investment Services Tariffs and Charges.
  • If you are based in Malta, you can open an account by visiting one of our branches. A member of our staff will assist you with the account opening process, which consists of submitting an account application form and providing official identity document (ID card or passport) as well as a proof of address (ID card, recent utility bill or bank statement).

    If you are based abroad or unable to visit one of our branches, you can also open an account online. To do so, you need to visit our website and click on Open an account .

    The documents we require when you apply online are:

    1. An original signed copy of the account application form that you will print at the end of the online application process,
    2. A clear and legible copy of a valid, unexpired identification document that could be either:
      • Your national identity card (copy of front and back),
      • Your passport (copy of photo and details).
    3. A recent (no more than six months old) document clearly indicating your residential address that could be either:
      • An original bank statement,
      • An original utility bill, or
      • An original correspondence from, or document issued by, a central or local government authority, department or agency.

    If you already hold an account with Mediterranean Bank, opening an additional account is a fairly quick process as you will not need to provide all the documentation mentioned above. You will just need to open new account from your Internet Banking, or visit one of our branches

  • No charges are applicable when opening an account with Mediterranean Bank. There are also no charges for the maintenance of your accounts.
  • You can fund your trades by depositing funds in your Investment Cash Account. You can do that by instructing a bank transfer, online or by visiting one of our branches. Money on your Investment Cash Account can be used to fund your buy orders on a cleared funds basis. You will earn some interest on the cash balances held on your Investment Cash Account.
  • You can start investing in a Model Portfolio by visiting one of our branches. 
  • To log in to your Internet Banking you need to click on “Log in” and follow the steps indicated. If you need further help, click here to download our Online Banking Guide.
  • The Morningstar Analyst Rating is a qualitative assessment that is issued by Morningstar fund analysts. This rating represents a forecast on the future performance of funds relative to peers and/or relevant benchmarks.

    In order to issue a rating, the Morningstar fund analysts base their assessment on five pillars: investment team, investment process, performance, costs and fund house.

    A rating of ‘Gold’, ‘Silver’ or ‘Bronze’ is attributed to investment funds that are expected to perform better during a future full market cycle than the category and/or risk-adjusted relevant benchmarks. The difference between these ratings is determined by the degree of conviction of the fund analyst of the ability of the fund to achieve outperformance. Funds that are not expected to distinguish themselves will receive a 'Neutral' rating, while funds that perform below par on several levels will be assessed as 'Negative'.

     MorningstarAnalystRating

  • All client holdings are held in separated client custody accounts with robust, investment grade rated global providers of custody and safekeeping services. Such accounts are held in the name of Mediterranean Bank as nominee for its clients and not in Mediterranean Bank’s own name. As a result, no matter what happens to Mediterranean Bank, all client investment holdings will remain in these segregated client custody accounts and would continue to be held for your benefit.
  • The W-8BEN Form is issued by the Internal Revenue Service (IRS) with the purpose of allowing non-US persons to benefit from a reduced rate of taxation on dividends and coupons paid by US companies. If you wish to invest in US securities, you will have to provide us with a duly signed W-8BEN form. The W-8BEN form is valid for three calendar years after the year in which it was signed and submitted to IRS. A new form must be submitted when the existing one expires or if there is a change in circumstances making any information on the form incorrect. 
  • Click here to read the biography of our management team
  • If you would like to transfer your portfolio, you need to download and send us a signed Asset Transfer Form which can be found on our website under Support > Document Centre. Mediterranean Bank will liaise directly with your existing broker to arrange the transfer on your behalf. 
  • You can instruct international payments in a variety of currencies by traditional methods or via our comprehensive online banking platform. Payments that include an element of foreign exchange will be executed in line with your instructions.
  • Notifications of corporate actions will be sent to your online secure inbox which you can access when logged into your account. You will also be sent an email alert to let you know that you have a new message to read.

    • Keep your computer up to date – ensure your operating system, web browser, and applications have the most current updates. Enable automatic security updates.
    • Anti-virus programme - Use a quality anti-virus program, and ensure that you receive regular updates for your virus definition files.
    • Public computers - Avoid accessing online banking from public or shared computers, e.g. Internet cafés, libraries, and hotels. Use of shared computers substantially increases risk of possible account compromise.
    • Internet browser - Make sure you have a current version of your Internet browser installed.
    • Log-off and close the browser window - Do not leave your computer unattended. Always log out of our online banking and close your browser if you step away from the computer.
  • Viruses, malware (short for malicious software), and spyware are computer programs that are designed to gather information, or gain unauthorized access to computer systems. It may be disguised as genuine software.

    Fraudsters use spyware to steal the logon credentials. This may enable the fraudster to log into the customer’s account. Spyware is often designed to monitor users' web browsing, and it may be capable to record the keystrokes entered on the PC. It may then be able to transmit a record of those keystrokes to the criminal controlling the malware over the Internet. Spyware can be surreptitiously installed by visiting an infected website, or by opening an infected email attachment.

    Good security measures that would stop most spyware from infecting your PC are:

    • Enable the option of receiving automatic security updates in your operating system.
    • Keep your browser and browser plug-ins (such as Java and Flash) updated.
    • Have antivirus software that updates its signatures daily via the Internet.
  • No, it is free to participate in corporate actions.

  • We constantly monitor foreign exchange rates in live markets throughout the day in order to provide you with the most up to date prices. For an indication of our opening rates (updated daily), please click here.
  • The ultimate shareholders of Mediterranean Bank are AnaCap Financial Partners II L.P., a fund managed by AnaCap Financial Partners LLP, a UK private equity firm focused on investing in the European financial sector. Senior management of the Bank are also shareholders with a minority stake in the Bank’s equity.
  • The W-8BEN form should be completed in either blue or black ink. If correction fluid (Tip-ex) or correction tape are used the forms will be rejected. As an individual, you should complete only the fields indicated below.

    Part I: Identification of Beneficial Owner

    • Point 1: Enter your full name
    • Point 2: Enter your country of citizenship
    • Point 3: Enter your permanent residential address. Do not enter a PO Box, "Care of" or any other mailing type addresses. Country name should be completed without any abbreviations used.
    • Point 4: Enter your mailing contact address only if it is different from your permanent address. Country name should be completed without any abbreviations used.

    Part II: Claim of Tax Treaty Benefits

    • Point 9: Enter your country of residency for tax purposes.

    Part III: Certification

    • Sign and date the form, keeping in mind that the US date format is mm-dd-yyyy so for example 25th of September 2012 should be written 09-25-2012.
    Please note that the information above are for guidance purposes only and should be read alongside the official IRS instructions that are available on the IRS website. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • Yes, after the payment details have been verified, we will send you a text message containing a One Time Passcode (OTP). Simply enter this code in the on-screen box provided to authorise and complete the transaction. OTP provides additional protection because it is unlikely a fraudster will be able to capture both your internet log credentials and your mobile phone.
  • The Synthetic Risk and Reward Indicator (SRRI) was defined in 2009 by the Committee of European Securities Regulators (CESR) with the aim of providing investors with a method of assessing a fund's risk. The SRRI measures the volatility of the fund. A higher volatility means there is greater uncertainty about the size of the changes in a fund's value. This means that the price of the fund can change dramatically over a short time period in either direction. A lower volatility means that a fund's value is not expected to fluctuate dramatically, but to rather change in value at a steady pace over a period of time. The table below shows the mapping between the volatility and the SRRI value. The table shows the differences in percentages that the value of a fund may experience over one year (Annualised Volatility). The percentage is linked to the respective SRRI rating. The more limited the variation is, the lower the SRRI Rating of a fund. The higher the variation, the higher the SRRI Rating.

    SRRI

    Annualised Volatility

    1

    0 - 0.49%

    2

    0.5 - 1.99%

    3

    2 - 4.99%

    4

    5 - 9.99%

    5

    10 - 14.99%

    6

    15 - 24.99%

    7

    25% +

    The SRRI is calculated based on the fund returns over the last five years. If a fund is less than five years old, the returns of a comparable benchmark is used for the period before the fund was launched. 

  • You can change your security details by logging in to your Internet Banking, clicking on “Update Details” and then selecting the security detail you wish to change (password, PIN and answers to your security questions). If you would like to change your contact details (email, address, phone number) you can do so by logging in to your Internet Banking and clicking on Update Details > Change Personal Details. You can also send us a message through the Need Help? > Contact Us section of your Internet Banking platform, visit one of our branches or call us on (+356) 2557 4400. If you need further help, click here to download our Online Banking Guide.
  • You can start investing in a Model Portfolio from €20,000
  • You can explore our universe of tradable securities both on our public website and on your private trading platform, accessible when you are logged in to your Internet Banking. You can search for individual securities by ISIN, ticker or name, or you can view securities with specific features, such as from a specific sector, with a specific currency, etc.
  • Different accounts have different minimum amount requirements:

    • NOW Account: minimum amount of 5,000 in the currency of denomination
    • Fixed Term Deposit Account: minimum amount of 5,000 in the currency of denomination
    • Me12 Savings Account: No minimum amount required
    • Me3 Savings Account: No minimum amount required
    • Savings Account: No minimum amount required
    • Investment Cash Account: No minimum amount required
    • tiMe Account: Minimum monthly contribution of €100, minimum balance after 12 month of €3,000
  • Once a Fixed Term Deposit Account is opened, you cannot change the amount deposited, the rate or the term.
  • If you wish to trade or transfer a security or fund that is not currently available on our platform, please contact us on (+356) 2557 4400 or email us at info@medbank.com.mt and we will determine whether it is possible to arrange for the requested security or fund to be made available on our trading platform.
  • No, you can always change your Model Portfolio later if you wish. You can sell a fund or a part of a fund in the portfolio. Adding additional funds is not possible. You can of course keep other funds in your portfolio and sell or buy them via your Mediterranean Bank investment account.
  • In order to make an outward payment you can select Move Money > Outward payments and follow the instructions. If you need further help, click here to download our Online Banking Guide. 
  • Fund Selection Process

    Mediterranean Bank works closely with Morningstar Investment Management Europe (MIME) to define a bespoke fund universe or portfolio of funds to support specific investment goals. The fund selection process is comprised of the following quantitative and qualitative phases:

    1. Determining asset allocation

    Before selecting individual funds Morningstar looks at the composition of the portfolio in terms of stocks and bonds (the so-called asset classes) and examines its geographical and sectorial allocation. This determines the composition of the portfolio.

    2. Quantitative Screening

    Morningstar applies a ranking process that considers the Morningstar Risk Adjusted Return benchmark. Other factors that are taken into consideration are:

    • Performance consistency – if a manager has consistently performed poorly in three out of the last four calendar years, the fund will typically be removed at this stage. Empirical evidence suggests that long term poorly performing funds will continue to perform poorly going forward.

    • Manager Tenure – If a manager has been running a fund for less than three years, they will typically be removed from the selection.

    • Style – If the fund displays erratic changes in style, it will typically be removed at this stage.

    • Currency – If a multi-regional fund search is undertaken, those funds that do not have an offering in the base currency of the intended users will typically be removed from the selection.

    3. Qualitative Evaluation

    The purpose of the qualitative selection methodology is to instil discipline into the manager research process by appraising critical factors that can help determine a fund’s ability to outperform. Funds are evaluated across the five pillars that Morningstar has identified as being helpful in predicting the future success of funds: Parent, People, Process, Performance, and Price.

    • Parent - The culture and structure of an asset management firm can have an impact on its ability to attract and retain talent and its penchant for serving in the best interests of fund shareholders.

    • People - Evaluating the depth and capabilities of an investment team is critical in attempting to identify funds that have a competitive advantage over their competition.

    • Process - Morningstar favours managers who employ a disciplined, consistent, and repeatable investment process. Ultimately, Morningstar is looking for traits that give the investment team an edge over its competition.

    • Performance - The goal is to identify management teams that in the past have demonstrated skill which we define as the ability to outperform their respective benchmark/peer group on a risk-adjusted basis in a consistent fashion.

    • Price - Research indicates that expenses are critical in predicting future fund performance. A fund’s expense ratio should be evaluated within the context of the relevant region and relative to its Morningstar peer group and also consider the trend in expenses and assets in the fund.

    4. Portfolio Construction

    Morningstar firmly believes that asset allocation is a primary determinant of investment returns within a global fund portfolio. Hence, an important consideration for our final selection is how the fund will complement the remainder of the portfolio or select list.

  • You can choose either to have 15% Maltese withholding tax, if any is due, automatically deducted from the gross amount of dividend or interest earned from your investments or not to have Maltese withholding tax automatically deducted at source. We recommend you to consult your tax advisor in order to asses which option is better for you.
  • Our approach is to gain an understanding of your goals and risk tolerance in relation to foreign exchange in order to implement effective strategies for your business:
    • We avail ourselves of foreign exchange specialists who will assess your needs.
    • We can help you minimise foreign currency exposure in a solution which is tailored to your business.
    • We continuously monitor markets to assist you in taking advantage of any opportunity in line with your pre-determined goals. 
  • You investment is safe kept in our nominee account, this allows us to give you the lowest execution fees under our scalable business model. However this means we have certain restrictions on the corporate action types we can offer.

    Below are some corporate actions which are currently not offered:

    • Dividend reinvestments/dividend options on international markets. Where possible we will offer this option on the local Maltese market.
    • Odd lot offers, typical in the United States market, e.g. mini tenders.
    • Non official offers, or offers that are not supervised or regulated by an official entity.
    • French loyalty bonus offers.
    • Company meetings, proxy voting and consent offers.
    Unregulated/unprotected corporate actions offered by third parties will also not be offered.
  • The most prevalent “phishing” attacks have the following in common:

    • A criminal sends thousands of emails to customers. These emails appear to come from the Bank.
    • It urges you to update some information on a fraudulent website that mimics our online banking website.
    • On the fraudulent website, you will be asked to provide sensitive account information.

    Phishing attempts trick you into thinking that you are providing information to a bank when, in fact, you are giving it to a criminal. Here are a few signs that an email message you have received is a “phishing” attempt:

    • Have urgent or time-sensitive message requesting you to act immediately, or suggests dire consequences if you do not. Scam artists are hoping to get you to react quickly before the fraud is detected.
    • Requests that you verify your information, and provides a link for you to do so. The link will take you to the scam artists' fake website in the hope that you disclosure your personal information.
  • It is important to note that a phishing attack does not involve a breach of our security systems. Instead of breaching the security of banking systems, criminals rely on unsuspecting customers to reveal their personal account information. Fraud success is related to the lack of customer education. In the past, customers were often being telephoned and tricked into revealing their account numbers. This type of fraud eventually declined—not because people stopped using their telephones, but because they became more informed about the risk of giving personal information over the phone.
  • Send us your instruction online by logging onto your account and sending us a return secure message. Instructions must be very clear and not be subject to interpretation, clearly stating the option number you are opting for.

  • You can benefit from foreign withholding tax reduction on income paid on US equities, ETFs and bonds. In order to claim the benefit on your behalf, we need you to submit a W-8BEN Form. We do not offer foreign tax refund services.
  • If you have accounts denominated in different currencies, you can move money between them by clicking on Transfer Money > Between My Accounts from your Internet Banking platform.  If the origin account and the destination account are denominated in different currencies, Mediterranean Bank will provide you with an indicative exchange rate, which is determined by applying a 0.5% margin on the prevailing market rate.
  • Investing in a Model Portfolio will cost you just 0.5% of the amount invested if this is over €40,000 and 1% of the amount invested otherwise. We do not charge any exit fees or other transaction charges. If you invest in a Model Portfolio by opening a tiMe account, the entry fee will be entirely waived, thus making it even more convenient to build your saving plan.

  • Once you have opened an Investment Account and accessed the trading platform, you can place an order in a number of ways:

    • By clicking "Place an Order" in the left hand menu of your trading platform
    • By clicking on the "Buy" or "Sell" buttons next to the securities in your portfolio
    • By clicking on the "Buy" or "Sell" buttons within the research tools available on the trading platform
  • Should you wish to close an account, please inform us either by calling our Customer Service on (+356) 2557 4400 or through the Bank’s secured messaging system. Upon closure, any outstanding balance together with any interest due, shall be transferred to your account of preference*. Fixed Term Deposit accounts and NOW Accounts cannot be closed prior to the maturity date. Me12 Savings Accounts require a twelve months’ withdrawal notice, while Me3 Savings Accounts require a three months’ withdrawal notice to be closed.

    * With the exclusion of those clients who manage the banking relationship exclusively online and through a linked account, in which case, any balance together with any interest due shall be transferred to the linked account.

  • If you apply for an account online, we will ask you to provide the details of an account in your name that you hold (as a single or joint holder) with a bank in the European Union. We call this linked account because we will link it to your Mediterranean Bank account.

    We will also ask you to send a payment from your linked account in order to activate your account with Mediterranean Bank. Subsequently, when your account is activated, you can transfer money from any account, however any funds sent out of your Mediterranean Bank account may only be sent to your linked account.

    If you would like to remove the linked account feature from your account, you can visit one of our branches and provide an official identity document (ID card or passport).

  • Once an order has been executed, you will receive a secure message together with an email notification to the email address you provided at account opening stage. You will also be able to download your contract note with all the details of the executed trade from the Trade History section of your trading platform. Executed orders will be reflected in your portfolio summary, while pending orders will be shown in a separate section below portfolio summary and move into your portfolio summary once executed.
  • The ‘Capital Growth’ Model Portfolio has five different risk profiles. You can choose a risk profile from defensive to dynamic. A defensive portfolio contains mainly fixed income funds, whereas a dynamic portfolio mostly contains equity funds. Therefore, a dynamic portfolio will be more sensitive to fluctuations on stock markets. The profit expectations of a dynamic portfolio will also be higher than those of a defensive portfolio. The ‘Regular Income’ Model Portfolio always has a balanced risk profile.
  • Mediterranean Bank calculates exchange rates by applying a 0.5% margin on the prevailing market rates. Exchange rates shown in the newspaper and on some currency conversion sites are generally interbank rates available only to banks for high-value transactions. These rates are not generally available to the public. Mediterranean Bank’s spread on foreign exchange is low compared to most banks and other exchange rates services providers, and it is transparent since there are no hidden commissions or other changes.
  • The company's registrar will set a deadline for security holder responses to a corporate action, we must ensure that all the instructions of our clients reach the registrar by this deadline. Therefore our deadline will always be before the company registrar's deadline to give us time to process and forward on client instructions.

  • There may be phishing scams that are circulating using the name and logo of the Bank in an email with a link to a false online banking website. The link then connects to a website that looks very much like our actual online banking website. Please do not submit any information on the fraudulent site. The information submitted via this website is used to commit fraud.

    By using the logos and letterhead of financial institutions, fraudsters are able to convince some of their target victims to respond. The Bank does not solicit members for personal and confidential information by email. If you receive a phishing email that claims to be from us, please report it to phishing@medbank.com.mt. This is the surest way to confirm your suspicions and to enable us to protect other members.

    Hypertext links in emails are not always what they appear to be. Scammers use techniques to make links appear valid, but the actual link may redirect to a fraudulent website. If you have any doubt about an email, type in the Internet address of Mediterranean Bank yourself, and do not click on embedded links. Always look for the padlock in your browser, the https:// in front of business.medbank.com.mt to help validate that you are visiting our online banking website.

    Please be sure to take the following measures:

    • Give your login credentials only at the login page on https://business.medbank.com.mt.
    • Do not provide information in response to an unsolicited request, whether it is in an email or over the phone.
    • Never send your password, PIN or answers to security questions via email.
    • Be suspicious of urgent requests for personal financial information.
  • To securely access our corporate internet banking, please open a new browser window, and navigate to https://business.medbank.com.mt. You can verify that you are on our real log-in page in 3 easy steps:

    • The address in the address bar starts with https://
    • The domain in the address bar is correct: business.medbank.com.mt
    • The browser displays a padlock, indicating that the connection is secured.
    • Check the validity of our digital certificate by clicking on the padlock.

    Note on the fourth step: This will help you confirm the authenticity of our online banking website. Digital certificates authenticate websites. They are issued by certification authorities, and include the name, serial number, and expiry dates.

    To check the validity of our digital certificate, click on the padlock in your browser. The location of the padlock varies depending on the browser you are using. You should see the name of the owner, and the validity period of a certificate. This is what you should see if you are on the real online corporate banking website of the Bank.

  • Our investment services are on an 'execution-only' basis. This means we shall not provide personal financial advice about the suitability of an account or an investment you hold within it.

  • Yes, you can invest in multiple Model Portfolios.
  • Cancellation of pending orders is subject to the following rules:

    • Orders for mutual funds cannot be cancelled.
    • Orders for international equities and ETFs can be cancelled on our investment platform by clicking the “Cancel” button on the “Pending Orders” screen

    We cannot guarantee that requests for cancellation of orders will be executed, in particular if such requests have been validly received after the order has already been executed, or if such cancellation is not possible because of the regulation and operational rules of the markets concerned.

  • The linked account can be changed by sending a secure message whilst logged on your Internet Banking. The message should contain name of account holder(s), IBAN and BIC/Swift code of your new linked account. You will then have to send a payment of any amount from the new linked account and upon receiving the payment we will change your linked account details.
  • No charges are applicable when opening an account with Mediterranean Bank. Furthermore there are no charges for the maintenance of such accounts. If you would like to see our Tariffs and Charges for Banking Services, please follow this link

  • Proceeds from sales of investments will be reflected in your Investment Cash Account immediately after the trade is executed. The sale proceeds shall be available for withdrawal or further investment once the trade has settled.
  • The Model Portfolios can be a guidance when investing, but cannot be considered as investment advice. You decide whether or not to invest in this basket of funds. You should also read all legally required documents of all the funds carefully, such as the prospectus, the (semi) annual report and the KIID (Key Investor Information Document). Mediterranean Bank will not manage the Model Portfolios as they are offered on an execution-only basis.
  • If you have missed our deadline then the default instruction option will be applied on your investment.

  • There may be several reasons why you are not able to log in:

    • Account has been blocked. Account may be blocked if we detect several failed attempts to logon to your account. If you receive a message that indicates that your account has been blocked, please call Customer Service at 2557 4444. Please note that we will need to verify your identity before we can unblock the account.
    • Typing errors. Internet users often type in an address to reach a web site. Secure pages have slightly different addresses from other sites on the Internet. To logon to online corporate banking, type-in https://business.medbank.com.mt into your browser’s address bar. Note: secure web sites begin with https://.
    • Cookies. A cookie is a small piece of information that a website can store on your computer. We use cookies to maintain continuity during your online banking session. Cookies must be accepted in order to access your account online. Check your browser settings to ensure you are accepting cookies from our websites.
  • We will accept your queries via email if you have signed an indemnity document with the Bank. Please note that email is not a secure medium of communication. Consequently the Bank advises to make use of the secure messaging functionality within the Corporate Internet Banking service.
  • If you wish to alter an instruction you have sent us please contact us on (+356) 2557 4400 or send a replacement online secure message and we will do our best to accommodate your request. If your election has already been acted upon, and forwarded to the company's registrar, this may not be possible.

  • Whenever a dividend is paid on one of the fund included in your Model Portfolio, the dividend will be paid to the Investment Cash Account linked to your portfolio. 
  • The securities in your portfolio can all be viewed in one place by logging onto your Internet Banking and reviewing your Investment Account. This is where you will be able to find information about the value of your investments, their book cost and an estimate of the unrealised gains or losses related to each security in your portfolio.
  • You can deposit funds by instructing a bank transfer, online or by visiting one of our branches. We also accept cheques, bank drafts and cash. In the case of cash, we may ask you to provide a proof of the source of funds, such as a withdrawal receipt or a declaration letter.
  • In order to comply with European regulations, Mediterranean Bank must apply enhanced due diligence procedures to politically exposed persons. Politically exposed persons are individuals who have been entrusted with a prominent public function or who are closely related to such persons.
  • The prices quoted on Mediterranean Bank trading platform are normally delayed by 15 minutes, with the exception of bonds and mutual funds for which previous day closing prices are provided. These price quotes serve only as an indication of the real-time market price.
  • The company's registrar will often set a default election option for security holders to be used when no reply is received. We will tend to use the same default option however there may be some occasions when we will set a different default option. We will always advise the default option on our corporate action notifications.

  • We are using the security token to authenticate your online banking session. Please immediately inform the Bank that you are no longer in the possession of the token by calling our Customer Service on (+356) 2557 4444 or contact your Relationship Manager.
  • Additional users need to be setup by the Corporate Administrator. Please refer to manual for further assistance. Once the user is setup the Bank will arrange for an additional token to be provided upon notification from the administrator.
  • The trading platform is available 24/7, but you can trade only on working days during the following hours:

    • Equities and ETF’s - 8 am to 6 pm for European and UK markets, 2.30 pm to 10 pm for US markets (with the ability to place orders from 8 am for execution at market opening)
    • Bonds and Mutual Funds - 8 am to 6.30 pm (with the ability to place orders until 10 pm for execution the next day)
  • Mediterranean Bank asks this question in order to comply with the Foreign Account Tax Compliance Act (FATCA), a US law which requires non-US financial institutions to provide the US tax authority (the Internal Revenue Service or IRS) with information on certain US persons with accounts outside of the United States.
    The W-9 Form is used by financial institutions to obtain information from their customers which will be used to report interest and other types of income to the US tax authority.
  • You need to submit a W-9 Form if you are a US citizen, US resident alien or US tax resident. The W-9 form can be found on our website under Support > Document Centre. The W-9 Form can be completed in either blue or black ink. If correction fluid (Tip-ex) or correction tape are used the form will be rejected. Please complete the fields as indicated below.                         

    General Information

    Row 1: Enter your full name Row 3: Check the box which indicates the appropriate tax classification Rows 4 and 5: Enter your permanent address

    Part I: Taxpayer Identification Number (TIN)

    Enter your TIN: for individuals this is the Social Security Number (SSN)

    Part II: Certification

    Sign and date the form, keeping in mind that the US date format is mm-dd-yyyy so for example 25th of September 2012 should be written 09-25-2012.

    Please note that the information above is for guidance purposes only and should be read alongside the official IRS instructions that are available on the IRS website. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.

  • Transaction charges can be found in our Investment Services Tariffs and Charges
  • This will vary, but generally will not be until the company has sent out the official documentation to shareholders. We will not contact clients as a result of press releases or market speculation. We also validate and second source the corporate action before distributing the information to you.

  • Notify the Bank immediately if you believe that your account has been compromised in any way. Please call our Customer Service on (+356) 2557 4444 or contact your Relationship Manager.

  • To logon on to online corporate banking, type-in https://business.medbank.com.mt into your browsers address bar. Please refer to “How do I know I am on your safe online banking website?” for more information. Alternatively, you can click on the Login button on the top right corner of our Business Banking website.
  • If you believe you should have received correspondence from us please contact us on (+356) 2557 4400 or send a secure online message.

Model Portfolios

  • A Model Portfolio is composed of a basket of funds. By investing in a Model Portfolio, you spread your money over all these funds. This way you can invest efficiently and diversify your portfolio in just a single click.
  • The funds are selected based on their ratings in cooperation with Morningstar. Not only past performance is important, but also the analyst reports for the future. Based on five pillars (management team, fund house, investment process, yields and costs) the Morningstar analysts make an estimate indicating whether the fund has the potential required to outperform similar funds.

  • You can start investing in a Model Portfolio by visiting one of our branches. 
  • You can start investing in a Model Portfolio from €20,000
  • No, you can always change your Model Portfolio later if you wish. You can sell a fund or a part of a fund in the portfolio. Adding additional funds is not possible. You can of course keep other funds in your portfolio and sell or buy them via your Mediterranean Bank investment account.
  • Investing in a Model Portfolio will cost you just 0.5% of the amount invested if this is over €40,000 and 1% of the amount invested otherwise. We do not charge any exit fees or other transaction charges. If you invest in a Model Portfolio by opening a tiMe account, the entry fee will be entirely waived, thus making it even more convenient to build your saving plan.

  • The ‘Capital Growth’ Model Portfolio has five different risk profiles. You can choose a risk profile from defensive to dynamic. A defensive portfolio contains mainly fixed income funds, whereas a dynamic portfolio mostly contains equity funds. Therefore, a dynamic portfolio will be more sensitive to fluctuations on stock markets. The profit expectations of a dynamic portfolio will also be higher than those of a defensive portfolio. The ‘Regular Income’ Model Portfolio always has a balanced risk profile.
  • Yes, you can invest in multiple Model Portfolios.
  • The Model Portfolios can be a guidance when investing, but cannot be considered as investment advice. You decide whether or not to invest in this basket of funds. You should also read all legally required documents of all the funds carefully, such as the prospectus, the (semi) annual report and the KIID (Key Investor Information Document). Mediterranean Bank will not manage the Model Portfolios as they are offered on an execution-only basis.
  • Whenever a dividend is paid on one of the fund included in your Model Portfolio, the dividend will be paid to the Investment Cash Account linked to your portfolio. 

Morningstar

  • Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia and Asia. They offer an extensive line of products and services for individuals, financial advisors and institutions. Morningstar is highly respected for their independent investment information. Their strength lies in their independent status, expert research and well tested rating and equity scoring models.
  • The Morningstar Star Rating is derived from a quantitative method in which mutual funds are ranked on the basis of their historical returns (adjusted for risk and costs) over periods of at least three years. These "risk-adjusted returns" are based on the monthly returns of a fund, where downward variations result in a lower score and a consistently good performance is rewarded with a higher score. Another important aspect is costs, making it more difficult for relatively expensive funds to receive a high star rating.

    The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star.  This Star Rating is calculated over periods of the past three, five and ten years.  If possible, Morningstar will also calculate these ratings for all periods in its Overall Morningstar Star Rating
  • The Morningstar Analyst Rating is a qualitative assessment that is issued by Morningstar fund analysts. This rating represents a forecast on the future performance of funds relative to peers and/or relevant benchmarks.

    In order to issue a rating, the Morningstar fund analysts base their assessment on five pillars: investment team, investment process, performance, costs and fund house.

    A rating of ‘Gold’, ‘Silver’ or ‘Bronze’ is attributed to investment funds that are expected to perform better during a future full market cycle than the category and/or risk-adjusted relevant benchmarks. The difference between these ratings is determined by the degree of conviction of the fund analyst of the ability of the fund to achieve outperformance. Funds that are not expected to distinguish themselves will receive a 'Neutral' rating, while funds that perform below par on several levels will be assessed as 'Negative'.

     MorningstarAnalystRating

  • The Synthetic Risk and Reward Indicator (SRRI) was defined in 2009 by the Committee of European Securities Regulators (CESR) with the aim of providing investors with a method of assessing a fund's risk. The SRRI measures the volatility of the fund. A higher volatility means there is greater uncertainty about the size of the changes in a fund's value. This means that the price of the fund can change dramatically over a short time period in either direction. A lower volatility means that a fund's value is not expected to fluctuate dramatically, but to rather change in value at a steady pace over a period of time. The table below shows the mapping between the volatility and the SRRI value. The table shows the differences in percentages that the value of a fund may experience over one year (Annualised Volatility). The percentage is linked to the respective SRRI rating. The more limited the variation is, the lower the SRRI Rating of a fund. The higher the variation, the higher the SRRI Rating.

    SRRI

    Annualised Volatility

    1

    0 - 0.49%

    2

    0.5 - 1.99%

    3

    2 - 4.99%

    4

    5 - 9.99%

    5

    10 - 14.99%

    6

    15 - 24.99%

    7

    25% +

    The SRRI is calculated based on the fund returns over the last five years. If a fund is less than five years old, the returns of a comparable benchmark is used for the period before the fund was launched. 

  • Fund Selection Process

    Mediterranean Bank works closely with Morningstar Investment Management Europe (MIME) to define a bespoke fund universe or portfolio of funds to support specific investment goals. The fund selection process is comprised of the following quantitative and qualitative phases:

    1. Determining asset allocation

    Before selecting individual funds Morningstar looks at the composition of the portfolio in terms of stocks and bonds (the so-called asset classes) and examines its geographical and sectorial allocation. This determines the composition of the portfolio.

    2. Quantitative Screening

    Morningstar applies a ranking process that considers the Morningstar Risk Adjusted Return benchmark. Other factors that are taken into consideration are:

    • Performance consistency – if a manager has consistently performed poorly in three out of the last four calendar years, the fund will typically be removed at this stage. Empirical evidence suggests that long term poorly performing funds will continue to perform poorly going forward.

    • Manager Tenure – If a manager has been running a fund for less than three years, they will typically be removed from the selection.

    • Style – If the fund displays erratic changes in style, it will typically be removed at this stage.

    • Currency – If a multi-regional fund search is undertaken, those funds that do not have an offering in the base currency of the intended users will typically be removed from the selection.

    3. Qualitative Evaluation

    The purpose of the qualitative selection methodology is to instil discipline into the manager research process by appraising critical factors that can help determine a fund’s ability to outperform. Funds are evaluated across the five pillars that Morningstar has identified as being helpful in predicting the future success of funds: Parent, People, Process, Performance, and Price.

    • Parent - The culture and structure of an asset management firm can have an impact on its ability to attract and retain talent and its penchant for serving in the best interests of fund shareholders.

    • People - Evaluating the depth and capabilities of an investment team is critical in attempting to identify funds that have a competitive advantage over their competition.

    • Process - Morningstar favours managers who employ a disciplined, consistent, and repeatable investment process. Ultimately, Morningstar is looking for traits that give the investment team an edge over its competition.

    • Performance - The goal is to identify management teams that in the past have demonstrated skill which we define as the ability to outperform their respective benchmark/peer group on a risk-adjusted basis in a consistent fashion.

    • Price - Research indicates that expenses are critical in predicting future fund performance. A fund’s expense ratio should be evaluated within the context of the relevant region and relative to its Morningstar peer group and also consider the trend in expenses and assets in the fund.

    4. Portfolio Construction

    Morningstar firmly believes that asset allocation is a primary determinant of investment returns within a global fund portfolio. Hence, an important consideration for our final selection is how the fund will complement the remainder of the portfolio or select list.

Online Banking

  • For security reasons outward payments are subject to a daily limit in the amount of €30,000. Payments between your Mediterranean Bank accounts are not limited. If you want to transfer an amount in one day that is larger than €30,000, please visit one of our branches and we will provide you with further assistance.
  • Once you open an account with Mediterranean Bank, you can register to use Internet Banking. The service is available 24/7 and is free of charge. In order to register for Internet Banking, you need to visit our website www.medbank.com.mt, click on “Register” and fill in the information requested. If you need further help, click to download our Online Banking Guide.
  • To log in to your Internet Banking you need to click on “Log in” and follow the steps indicated. If you need further help, click here to download our Online Banking Guide.
  • You can change your security details by logging in to your Internet Banking, clicking on “Update Details” and then selecting the security detail you wish to change (password, PIN and answers to your security questions). If you would like to change your contact details (email, address, phone number) you can do so by logging in to your Internet Banking and clicking on Update Details > Change Personal Details. You can also send us a message through the Need Help? > Contact Us section of your Internet Banking platform, visit one of our branches or call us on (+356) 2557 4400. If you need further help, click here to download our Online Banking Guide.
  • In order to make an outward payment you can select Move Money > Outward payments and follow the instructions. If you need further help, click here to download our Online Banking Guide. 
  • If you have accounts denominated in different currencies, you can move money between them by clicking on Transfer Money > Between My Accounts from your Internet Banking platform.  If the origin account and the destination account are denominated in different currencies, Mediterranean Bank will provide you with an indicative exchange rate, which is determined by applying a 0.5% margin on the prevailing market rate.
  • Mediterranean Bank calculates exchange rates by applying a 0.5% margin on the prevailing market rates. Exchange rates shown in the newspaper and on some currency conversion sites are generally interbank rates available only to banks for high-value transactions. These rates are not generally available to the public. Mediterranean Bank’s spread on foreign exchange is low compared to most banks and other exchange rates services providers, and it is transparent since there are no hidden commissions or other changes.

Safety

  • All Mediterranean Bank accounts are guaranteed up to €100,000 by the Malta Financial Services Authority (MFSA) under the Depositor Compensation Scheme.
  • The Depositor Compensation Scheme is a rescue fund for depositors of failed banks which are licensed by the Malta Financial Services Authority. Compensation is paid only if a bank is unable to meet its obligations towards depositors or has otherwise suspended payment. The Scheme is based on the EU Directive 94/19 on deposit-guarantee schemes. The scheme is managed by a single Management Committee which is appointed by the MFSA.
  • All client holdings are held in separated client custody accounts with robust, investment grade rated global providers of custody and safekeeping services. Such accounts are held in the name of Mediterranean Bank as nominee for its clients and not in Mediterranean Bank’s own name. As a result, no matter what happens to Mediterranean Bank, all client investment holdings will remain in these segregated client custody accounts and would continue to be held for your benefit.
  • Yes, after the payment details have been verified, we will send you a text message containing a One Time Passcode (OTP). Simply enter this code in the on-screen box provided to authorise and complete the transaction. OTP provides additional protection because it is unlikely a fraudster will be able to capture both your internet log credentials and your mobile phone.

Tax matters & legislation

  • If you have elected to have tax withheld, Mediterranean Bank will deduct withholding tax on:

    Interest income earned on Savings Accounts, Me3 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts.

    Coupons paid on bonds’ holdings.

    Dividends paid on equities, ETFs and funds’ holdings.

    Capital gains earned from the sale of securities.

    Mediterranean Bank will pay your income/trade consideration net of withholding tax due and remit the withholding tax to the Maltese tax authority. Please note that the information above are for guidance purposes only. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • Interest income earned on Investment Cash Accounts, Savings Accounts, ME3 Savings Accounts, Me12 Savings Accounts, Fixed Term Deposits and NOW Accounts is not subject to foreign withholding tax. Income from securities issued by foreign companies may be subject to withholding tax in the country where the security was issued. However, a Maltese investor may benefit from a lower foreign withholding tax rate or be entitled to a refund of foreign withholding tax by virtue of the double taxation agreement between Malta and the country where the issuer of the security is located. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • The W-8BEN Form is issued by the Internal Revenue Service (IRS) with the purpose of allowing non-US persons to benefit from a reduced rate of taxation on dividends and coupons paid by US companies. If you wish to invest in US securities, you will have to provide us with a duly signed W-8BEN form. The W-8BEN form is valid for three calendar years after the year in which it was signed and submitted to IRS. A new form must be submitted when the existing one expires or if there is a change in circumstances making any information on the form incorrect. 
  • The W-8BEN form should be completed in either blue or black ink. If correction fluid (Tip-ex) or correction tape are used the forms will be rejected. As an individual, you should complete only the fields indicated below.

    Part I: Identification of Beneficial Owner

    • Point 1: Enter your full name
    • Point 2: Enter your country of citizenship
    • Point 3: Enter your permanent residential address. Do not enter a PO Box, "Care of" or any other mailing type addresses. Country name should be completed without any abbreviations used.
    • Point 4: Enter your mailing contact address only if it is different from your permanent address. Country name should be completed without any abbreviations used.

    Part II: Claim of Tax Treaty Benefits

    • Point 9: Enter your country of residency for tax purposes.

    Part III: Certification

    • Sign and date the form, keeping in mind that the US date format is mm-dd-yyyy so for example 25th of September 2012 should be written 09-25-2012.
    Please note that the information above are for guidance purposes only and should be read alongside the official IRS instructions that are available on the IRS website. We advise you to consult your tax advisor in order to get more specific advice and to assess your overall tax position.
  • You can choose either to have 15% Maltese withholding tax, if any is due, automatically deducted from the gross amount of dividend or interest earned from your investments or not to have Maltese withholding tax automatically deducted at source. We recommend you to consult your tax advisor in order to asses which option is better for you.
  • You can benefit from foreign withholding tax reduction on income paid on US equities, ETFs and bonds. In order to claim the benefit on your behalf, we need you to submit a W-8BEN Form. We do not offer foreign tax refund services.

Transfer of assets

Who is Mediterranean Bank?

  • Mediterranean Bank is a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA).
  • Mediterranean Bank was established in July 2005 as a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA). In July 2009, the Bank was acquired by AnaCap Financial Partners LLP, a UK private equity firm specialising in European financial services, and recapitalised. In 2014 Mediterranean Bank bought Volksbank Malta, a subsidiary of Volksbank Austria providing banking services to the Maltese retail and corporate sectors. In 2015, Medifin Holdings Limited, the holding company of Mediterranean Bank, completed the acquisition of Charts Investment Management Service Limited, a local investment services company, thus further strengthening its presence in the local market. As well as growing locally, Mediterranean Bank has also grown internationally, through its Belgian branch operating an online savings, investment and wealth management platform under the MeDirect brand. MeDirect became a fully licenced Belgian bank in 2015. In 2016, the name of the parent company Medifin Holding Limited was changed to MeDirect Group Limited.

  • Click here to read the biography of our management team
  • The ultimate shareholders of Mediterranean Bank are AnaCap Financial Partners II L.P., a fund managed by AnaCap Financial Partners LLP, a UK private equity firm focused on investing in the European financial sector. Senior management of the Bank are also shareholders with a minority stake in the Bank’s equity.