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.
  • You can open an account by visiting one of our branches. We will assist you with the account opening process, which consists of submitting an account application form, an official identification document (ID card or passport) as well as a proof of address (recent utility bill or bank statement).

    If you are unable to visit one of our branches, you can open an account online, by clicking on Open an account from our website.

    Once you fill in the online account application form you need to log in to your account using the details provided via email, upload an official identification document (ID card or passport) as well as a proof of address (recent utility bill or bank statement) on the dashboard and make a first payment of any amount to your Mediterranean Bank account.

    If you already hold an account with Mediterranean Bank opening additional accounts is quick and easy. You will just need to log in to your account, click on Open an account and follow the steps indicated on screen. 

  • No charges are applicable to open and maintain an account with Mediterranean Bank. For more information about fees please read our Tariffs & Charges Schedule for Banking Services.

  • 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
  • Should you wish to close an account, you can call us on (+356) 2557 4400 or send a secure mail through your Online Banking providing us with instructions to send any outstanding balance together with any interest due to an account of your 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.

  • You can deposit funds by instructing a bank transfer from an external bank account to your Mediterranean Bank account. We also accept cheques, bank drafts and cash deposits. 
  • 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 US. If you qualify as a US person, you cannot apply for an account online.

  • Once you open an account with Mediterranean Bank, you can register to use our Online Banking. The service is available 24/7 and is free of charge. In order to register you need to call us on (+356) 2557 4400 or visit one of our branches to request an Activation Code and Client number. Click on Login on our website and follow the steps indicated on screen.

  • Yes, you can open a joint account with existing Mediterranean Bank clients and with new clients. Click on Open an account and follow the steps indicated on screen.

  • You can move money between your accounts, to third party accounts with Mediterranean Bank or to external accounts. Once you set up a transfer you may also save the beneficiary details for future transfers.

  • You can exchange currencies online by moving money from a debit account to a credit account that are denominated in different currencies.

  • The Online Banking platform will provide you with an indicative exchange rate, which is determined by applying a 0.5% margin on the prevailing market rate. 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. 

  • For security reasons transfers to an external account are subject to a daily limit of €30,000 or equivalent. 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 or equivalent, please visit one of our branches and we will provide you with further assistance.

  • Yes, you can view and download your statements through Online Banking by clicking on My Transfers > Bank Statements.

  • You can send and receive secure mail through Online Banking by clicking on Mailbox.

  • You can change your security or contact details by logging in to your Online Banking, clicking on Settings and then selecting the details you wish to modify.

  • 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 send a secure mail through your Online Banking. 

  • Yes, you can set up future dated payments up to twelve months, through your Online Banking (My Transfers > Move Money), if the debit and credit accounts have the same currency.

  • You can instruct a Me3 Savings Account withdrawal at any time, subject to a three month notice, through your Online Banking (My transactions > Me3 & Me12 withdrawal notice).

  • You can instruct a Me12 Savings Account withdrawal at any time subject to a twelve month notice through your Online Banking (My transactions > Me3 & Me12 withdrawal notice. You cannot make a withdrawal request in the first three months since account opening.

  • 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. For more information about the Bank's interest rates please read the Interest Rate Sheet.

  • Different accounts have different rules for interest payments:

    • NOW Account: all interest is paid 10 working days after opening the account into your Savings 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 into your Savings Account
    • Me12 Savings Account: interest is paid semi-annually on the last working day of June and December into your Me12 Savings Account
    • Me3 Savings Account: interest is paid semi-annually on the last working day of June and December into your Me3 Savings Account
    • Savings Account: interest is paid semi-annually on the last working day of June and December into your Savings Account
    • Investment Cash Account: interest is paid semi-annually on the last working day of June and December into your Investment Cash Account
    • tiMe Account: interest earned together with bonus incentive will be used to purchase the Balanced Model Portfolio

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

  • Once a Fixed Term Deposit Account is opened, you cannot change the amount deposited, the rate or the term.

  • 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.
  • No withdrawals can be made from the tiMe Account. 

  • You are required to make regular monthly contributions over the initial twelve-month period. If for any reason you are unable to make one or more contributions, you should discuss this with one of our branch 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 Online 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.

  • 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.

  • In the event that an account holder passes away, 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 mail through your Online Banking 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 mail. 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 via secure mail through your Online Banking. 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.

  • You can provide your instruction by sending us a return secure mail through your Online Banking. 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 secure mail 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 call us on (+356) 2557 4400 or send a secure mail through your Online Banking.

  • If you believe you should have received correspondence from us please contact us on (+356) 2557 4400 or send a secure mail through your Online Banking.

  • 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 call us on (+356) 2557 4400 or send us a secure mail through your Online Banking.

  • 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

  • You can open an Investment Account by visiting one of our branches. We will assist you with the Investment Account opening process, which consists of submitting an Investment Account application form, an official identification document (ID card or passport) as well as a proof of address (recent utility bill or bank statement).

    If you are unable to visit one of our branches, you can also open an Investment Account online by clicking on Open an account from our website.

    Once you fill in the online account application form you need to log in to your account using the details provided via email, upload an official identification document (ID card or passport) as well as a proof of address (recent utility bill or bank statement) on the dashboard and make a first payment of any amount to your Investment Account.

    If you already hold an account with Mediterranean Bank opening additional accounts is quick and easy. You will just need to log in to your account, click on Open an account and follow the steps indicated on screen. 

  • No charges are applicable to open and maintain an Investment Account with Mediterranean Bank. For more information about fees please read our Tariffs & Charges Schedule for Investment Services

  • You can fund your trades by depositing funds in your Investment Cash Account, either from another account you hold with Mediterranean Bank or from an external bank account. Money in 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 balance held on your Investment Cash Account.

  • You can explore our universe of tradable securities on your Online Trading platform (My Investments > Place an Order). 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.

  • If you wish to trade or transfer a security or mutual fund that is not currently available on our Online Trading platform, please call us on (+356) 2557 4400 or send us a secure mail and we will let you know whether or not it is possible for the requested security or fund to be added to our universe of tradable securities.

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

    • Click on My Investments > Place an order
    • Click on Invest > Place an order 
    • Click on My Investments > My Watchlist
    • Click on My Investments > Overview > Investment Details
  • Once an order has been executed, you will receive a secure mail in your Online Banking. 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 Online Trading platform. Executed orders will be reflected in My investments > Overview, while pending trades will be shown in My investments > Pending trades and moved into My investments > Overview once executed.

  • 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 from your Online Trading platform by clicking the Cancel button on the Pending trades screen
    • Orders for bonds, local equities and local ETFs can be cancelled by sending a secure mail through your Online Banking 

    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.

  • An order to purchase or sell securities may be split into several orders and executed at different prices during the same Business Day or any following Business Days. If your order is only partially filled, and any part of the unfilled portion of the order is completed on subsequent Business Days, you will be charged separately for each partial order. As a result, the total charge may differ from the original estimate provided.

  • 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 securities in your portfolio can all be viewed in one place by logging onto your Online Banking and clicking on My investments > Overview. 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.

  • The prices quoted on the Online 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 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)
  • Transaction charges can be found in our Tariffs & Charges Schedule for Investment Services
  • No, the custody service is provided at no additional cost.
  • Your securities will be held in a segregated 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.
  • Mediterranean Bank does not offer investment advice tailored to your personal and financial circumstances, but we will be happy to discuss your financial needs with you. Give us a call on (+356) 2557 4400 to book an appointment with one of our relationship managers. If you would like to get tailored financial advice or portfolio management services, we offer it though Charts, our investment management sister company.

  • You can invest on the most important stock markets across the world, including, amongst others:

    • Borsa Italiana
    • Euronext Amsterdam
    • Euronext Brussels
    • Euronext Paris
    • London Stock Exchange (LSE)
    • Malta Stock Exchange (MSE)
    • Nasdaq
    • New York Stock Exchange (NYSE)
    • SIX Swiss Exchange
    • Xetra Frankfurt
  • You can trade over 400 bonds on the Mediterranean Bank Online Trading platform. These have been selected to provide you with a wide variety and choice and cover the following areas:

    • Issuers: Issuers: governments, corporate, financial institutions, super-national bodies
    • Domicile: Malta, US, Germany, UK, France and many more
    • Maturity: short term (less than two years), medium term (two to five years), long term (over five years)
    • Currencies: EUR, USD, GBP and more
  • We have selected a list of about 300 funds in which you can invest. They cover a range of investment objectives, markets and asset classes in order to help you diversify your portfolio.
  • You can trade over 200 ETFs on the Mediterranean Bank Online Trading platform, covering a wide range of investment objectives, market indices, and asset classes in order to help you diversify your portfolio.

  • Generally for shares, the minimum order size consists of one share. For bonds the minimum order size normally ranges from 1,000 to 100,000 in the currency of denomination. For mutual funds there is no specific minimum order size. The minimum investment level will be disclosed to you in the order placement screen.

  • You can purchase or sell securities on the Online Trading platform by placing market orders or limit orders.

    • Market Orders:If you place a market order, your order will be executed at the best available market price in accordance with the Mediterranean Bank Best Execution Policy which is included as Annex 2 to Investment Services Terms and Conditions.
    • Limit Orders:Limit orders are available only for shares and ETFs. When submitting a limit order, you will have to provide a limit price. Buy orders will only be executed at a price equal or lower than the limit price, while sell orders will be executed at a market price equal or higher than the limit price. You can choose between three different types of limit orders:
      • Fill or Kill: your order will be executed immediately in its entirety or cancelled. 
      • Immediate or Cancel: your order will be executed immediately in whole or in part, otherwise the order (or any unfilled parts of it) will be cancelled. Partial fills are accepted with this type of order, unlike a Fill or Kill order, which must be filled immediately in its entirety or cancelled.
      • Good for Day: your order will automatically expire if not executed at the end of the day when the order was placed. A Good for Day order is an order that is good for that day only, during which time partial fills can take place. If it is not filled, the order (or any unfilled parts of the order) will be cancelled. If you wish, you can re-input the order on the next working day.

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.

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.

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 June 2004 and one year later became a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA). In July 2009, Mediterranean Bank was acquired by new shareholders, a fund managed by AnaCap Financial Partners LLP, a UK private equity firm, and was recapitalised.In September 2014 Mediterranean Bank bought Volksbank Malta Limited, a subsidiary of Volksbank Austria providing banking services to the Maltese retail and corporate sectors, and incorporated it under the name of Mediterranean Corporate Bank Limited. In 2017 the activities of Mediterranean Corporate Bank were merged with the existing corporate banking services offered by Mediterranean Bank. In 2015, Medifin Holding 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 subsidiary 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.

  • More information about the Bank's directors is listed in the Management Team page on our website. 
  • 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.