Asteria Advisory – News & Updates

Building Consumer Protection Capacity in the EU

Insights from BEUC’s Consumer PRO Initiative

The Consumer PRO motto, “Collaboration is Key,” serves as an important reminder for us all. In the ever-evolving landscape of consumer rights, collaboration is essential for fostering progress and protecting consumers. This was an essential task for building consumer protection capacity across the EU. Here are some insights into the Consumer Pro Initative launched by BEUC.

BEUC is the umbrella group for 44 independent consumer organisations from 31 countries. Its main role is to represent these organisations to the EU institutions and defend the interests of European consumers. The acronym originates from its French name, ‘Bureau Européen des Unions de Consommateurs’.

Capacity Building

Capacity building has become increasingly vital in this field, especially as consumer protection laws continue to evolve. Recent legislative changes have been notably more favorable to consumers, while also providing clearer obligations for traders. These updates aim to harmonize consumer protection regulations across the EU, ensuring fairness and transparency in all consumer transactions.

Key Training Sessions and Updates

In 2020, a comprehensive training initiative was launched, focusing on general consumer protection and the evolving digital rights under EU law. By 2022, the program expanded to include the Representative Actions Directive, reinforcing the collective rights of consumers.

The Consumer PRO initiative, led by the European Commission and EISMEA, was designed to build capacity within consumer organizations across the EU. Implemented by BEUC, this initiative aimed to foster knowledge sharing and collaboration among professionals in the field.

The Best Practice Seminar: A Platform for Collaboration

The Best Practice Seminar is a key element of this initiative, open to a wide range of participants, including consumer organizations, national authorities, and European Consumer Centres (ECCs) in the EU, Norway, and Iceland. The seminar also welcomes other consumer professionals eager to learn and collaborate.

This seminar has been instrumental in enhancing the strategic planning of consumer law. Since 2020, two rounds of training have engaged over 2,000 consumer professionals, with participants receiving training either directly or through national seminars led by local trainers. Notably, the Czech Republic had the highest participation rate, while Malta, as a smaller jurisdiction, saw around 20 participants in 2020 and approximately 9 in 2022.

Focus on Digital Rights and Collective Redress

The 2020 training in Malta primarily focused on general consumer rights, with a brief session on digital rights. However, by 2022, digital rights received more in-depth attention due to increasing concerns about the lack of training and knowledge in this area. Additionally, a session on collective redress was introduced, though much of the legislation surrounding this remains unclear and underexplored.

Key Themes: Celebrate, Cultivate, and Collaborate

BEUC’s approach emphasises three core themes:

  • Celebrate: Recognizing the often-unsung daily efforts in consumer protection that are crucial to its success.
  • Cultivate: Fostering continuous learning and adapting to emerging challenges, such as the impact of AI on consumer rights. Inter-generational projects could help bridge the gap between traditional business practices and the evolving AI-driven landscape.
  • Collaborate: Encouraging cooperation among consumer professionals, organizations, and the BEUC to produce more meaningful results.

Looking Ahead

The Consumer PRO initiative has proven to be a vital tool for improving consumer law knowledge and building strong, collaborative networks across Europe. As we continue to navigate the evolving consumer protection landscape, we can expect more updates and opportunities for professionals to engage with this important work.

Stay tuned for more updates on this crucial initiative! and contact Geraldine Spiteri if you require any information about this initative.

📩 gs@asteria.mt

Cannabis Reform – new Legal notice !

This article was originally drafted at the time of Malta’s cannabis reform in 2021. While some aspects may have since evolved, it remains a useful overview of the framework established for responsible cannabis use and regulation.

In a landmark reform, Malta legalized the personal use and possession of cannabis, establishing a legal and regulatory framework to oversee its safe distribution through non-profit associations.

A new legal notice introduced the concept of Cannabis Harm Reduction Associations—non-profit organizations permitted to cultivate and dispense cannabis in controlled quantities to their registered members. This model, focused on harm reduction rather than commercial sale, marks a significant shift in Malta’s approach to cannabis use.

To regulate this framework, the Authority for the Responsible Use of Cannabis (ARUC) was established. ARUC is tasked with:

  • Licensing and supervising cannabis associations
  • Ensuring responsible use through education and oversight
  • Developing guidelines to govern both the operational and ethical aspects of the associations

While the reform aimed to balance access with accountability, it also raised several open questions. These include how associations will structure their internal governance, what compensation models will be permitted for founders and administrators, and how long-term compliance will be enforced.

Although applications for licenses opened some time ago, the ongoing implementation of Malta’s cannabis law remains a developing story—one that will continue to test the boundaries between public health, individual freedom, and regulatory oversight.

The change comes amid a flurry of controversy, with the ARUC intended to show that the use of cannabis will still be controlled and that some of this control will be handed over to the voluntary organisations who will be dispensing it.

The journey has been long – and there is more work to be done. In particular, there are many questions, such as the level of pay which will be acceptable for the founders / investors or the commercial model to be used.

Applications have opened a few weeks ago but it remains to be seen as to the ongoing administration.

At Asteria Advisory, we continue to monitor Malta’s evolving regulatory landscape. Whether you’re considering setting up a non-profit association, require legal clarity on compliance obligations, or are exploring opportunities under Malta’s licensing regime, our team is here to help you navigate every step with confidence

CJEU Invalidates Public Access to Beneficial Ownership Registers

A Shift in EU Transparency Law relating to beneficial ownership

On 22 November 2022, the Court of Justice of the European Union (CJEU) delivered a landmark judgment in Joined Cases C‑37/20 and C‑601/20. The decision marks a major shift in EU anti-money laundering and data protection law. It addresses whether the public should have unrestricted access to beneficial ownership information.

The Court struck down a key part of the 5th Anti-Money Laundering Directive (Directive (EU) 2018/843). This provision required Member States to grant the public full access to beneficial ownership registers for companies incorporated in their territory.

Background: Balancing Transparency and Privacy of beneficial owners

The 5th Anti-Money Laundering Directive introduced public access to beneficial ownership registers. It amended the 4th AML Directive (Directive (EU) 2015/849). The aim was to boost financial transparency, build trust in corporate structures, and strengthen efforts against money laundering and terrorist financing.

Sovim SA and another applicant in Luxembourg challenged these rules. They argued that the expanded transparency violated fundamental privacy rights under the EU Charter of Fundamental Rights.

The Court’s Findings

The CJEU ruled that the contested provision—Article 1(15)(c) of Directive 2018/843, which amended Article 30(5) of the 4th AMLD—was invalid. Here are the relevant considerations:

1. A Serious Interference with Fundamental Rights of beneficial owners

The Court found that full public access to beneficial ownership data constitutes a serious interference with the right to respect for private life (Article 7) and the right to protection of personal data (Article 8) of the Charter.

This interference was deemed particularly intrusive since it could:

  • Expose individuals’ financial and business affairs,
  • Facilitate profiling or targeting by malicious actors,
  • Lead to risks of harassment, extortion, or identity theft, particularly for beneficial owners with no connection to illicit activities.

2. Lack of Proportionality and Justification

The Court acknowledged transparency as a valid policy goal. However, it ruled that giving the general public unrestricted access went too far. The earlier approach under AMLD4—limiting access to those with a legitimate interest—struck a better balance.

The Court held that the EU legislature did not show why full public access was essential to meet the Directive’s aims.

3. Insufficient Safeguards for Beneficial Owners

Article 30(9) of AMLD4 let Member States grant exemptions case by case—for example, to protect high-risk individuals. But the Court found this safeguard inadequate. It came too late and did too little to prevent harm, especially when privacy risks had not yet emerged.

Implications for Member States and Corporate Transparency

This decision has immediate and long-term consequences for EU Member States. Businesses operating in the EU are also affected:

  • Member State Registers: Many countries—including Luxembourg and the Netherlands—moved swiftly to suspend public access to their beneficial ownership registers following the ruling. Others are reviewing legislative changes to align with the judgment.
  • Reassessment of Access Regimes: Member States must now ensure that access to beneficial ownership data is limited to parties with a legitimate interest. These would include competent authorities, financial intelligence units, and entities subject to due diligence obligations.
  • Future AML Legislation: This ruling would influence the upcoming EU AML Package, including the establishment of the new EU Anti-Money Laundering Authority (AMLA). Once created, AMLA would centralise and harmonise certain oversight functions. Any further expansion of transparency tools will need to respect the limits drawn by the Court.

A Step Back or a Refocus in disclosing beneficial ownership information?

The judgment has attracted mixed responses. Privacy advocates have welcomed it as a necessary recalibration of data protection principles in an era of growing surveillance. However, transparency NGOs and investigative journalists warn that this sets back progress on tackling opaque ownership structures, especially in the wake of revelations like the Panama Papers.

At its core, the ruling reaffirms the EU’s constitutional commitment to fundamental rights, even in areas where policy goals like financial transparency are clearly important. For practitioners and compliance professionals, it serves as a reminder that regulatory ambition must be matched with legal precision.

If you have queries about the information held in respect of a company that you own, or you wish to notify the Malta Business Register of any changes in the beneficial ownership of your company, please get in touch and we will be pleased to guide you.

Understanding the Representative Actions Directive Malta

The Representative Actions Directive (Directive (EU) 2020/1828) introduces a harmonized framework for consumer collective redress across the European Union. Designed to strengthen consumer rights enforcement, the directive empowers qualified entities to bring representative actions on behalf of consumers, especially in mass harm situations.

Although the directive officially came into force in 2023, EU Member States had until the end of that year to transpose it into national law. Malta launched its public consultation on the directive’s implementation late in the year — closing on the 25th of November — and it remains unclear whether the required legal framework will be adopted on time.

Malta’s Existing Legal Framework

The concept of collective redress is not new to Maltese law. The Collective Procedures Act (Chapter 520 of the Laws of Malta) already allows for collective actions. However, the new legislation implementing the Representative Actions Directive aims to carve out competition claims from the existing act and handle consumer redress separately under a new legal framework.

Whether this bifurcated structure will fully comply with the directive remains an open question and one that legal practitioners are watching closely.

In Malta, the competent authority for consumer affairs is the Consumer Affairs Diretorate within the Malta Competition and Consumer Affairs Authority.

Methodology and Key Features

A key departure from the American class action model is the EU’s emphasis on safeguards against abusive litigation. Instead of a lead plaintiff representing a class, the Representative Actions Directive mandates that only qualified entities — typically consumer organizations or public bodies — may bring forward such claims.

These entities must meet strict criteria to be eligible for cross-border claims, as defined in a checklist by the European Commission. Domestic-only actions may require less stringent qualifications but still need to reflect the directive’s principles.

To mitigate the financial burden of litigation, the draft Maltese Bill proposes an exemption from court registry fees and reduced fees for unsuccessful claims. However, concerns remain about whether local consumer organizations possess the resources and manpower to file and follow through with complex claims.

Funding and Participation Challenges

Access to adequate funding remains a significant obstacle. Many Maltese organizations lack not only financial resources but also the human capital — particularly younger legal professionals — required to lead large-scale litigation efforts.

Malta is also opting for an opt-in mechanism, meaning consumers must actively choose to join a representative action. This raises additional concerns about consumer engagement, especially when the potential compensation is relatively modest.

Public Consultation and Legal Community Reactions

The public consultation revealed a variety of perspectives, many of which highlight both support for the directive and concern about Malta’s readiness to implement it effectively. Historically, Maltese courts have interpreted collective redress provisions liberally, but the new legal framework may narrow that flexibility.

Legal Training and Awareness

In response to the upcoming legal changes, I am hosting a seminar series this week focused on the Representative Actions Directive, its objectives, and Malta’s proposed implementation model. These sessions will explore legal, procedural, and operational aspects of the directive, offering insights for both practitioners and policymakers.

Conclusion

The Representative Actions Directive signals a significant shift in EU consumer protection enforcement. Malta’s approach to implementation — balancing existing mechanisms with new legislative structures — will play a pivotal role in shaping how collective redress is accessed and delivered locally.

As these developments unfold, it is essential for legal professionals and stakeholders to remain engaged, informed, and prepared to adapt to the evolving regulatory landscape.

Malta’s Maritime Industry: A Strategic Hub for Ships & Yachts

Introduction:

With a proud maritime heritage and strategic position at the heart of the Mediterranean, Malta has steadily evolved into a strategic hub for ships and yachts. Malta is a leading jurisdiction for maritime investment and ship and yacht registration.

Known for its robust legal and regulatory framework, Malta’s maritime industry offers significant opportunities for international investors. This applies to local and international stakeholders alike, for both ships and yachts.

A Growing Force in Global Yachting and Shipping

Malta continues to enhance its reputation as a reliable and forward-looking maritime flag state. During the Superyacht Symposium that took place in July 2021, Transport Minister Dr. Aaron Farrugia launched the development of a National Superyacht Strategy. This initiative gives a clear signal that Malta intends to further elevate its standing in the global maritime industry.

Update – November 2023: the initiative was published by government and can be downloaded here.

Industry professionals called for improvements including infrastructure and marina services, corporate and legal frameworks supporting ownership. These efforts aim to position Malta as a top-tier jurisdiction for yacht registration and support services. The strategy covers everything – from hard-standing facilities to high-quality professional advisory.

International Interest at the Monaco Yacht Show

Malta’s presence at the Monaco Yacht Show drew substantial attention, with the Transport Malta stand buzzing with activity. Visitors from around the globe showed a strong interest in the advantages of the Malta. They included yacht brokers, charterers, and industry professionals looking at both commercial and private yachts.

The Malta Business Registry was also present in Monaco. This move emphasised the close integration of commercial ship operations and maritime corporate services under the Maltese system.

Over the last decade, promotion of Malta’s maritime industry has become even more important as a government priority.

Building a National Superyacht Strategy

In a follow-up meeting hosted at the Malta Chamber of Commerce, key stakeholders shared recommendations for shaping Malta’s National Superyacht Strategy. Topics included: modernising Transport Malta’s online platforms, banking access and developing a private yacht code.

The attendees’ suggestions will all form part of a national White Paper. The government will publish these proposals once the proposals are properly considered.

These collaborative initiatives will play a pivotal role in reinforcing Malta’s legal and regulatory environment for shipping and yachting — ensuring long-term competitiveness and regulatory clarity for investors, operators, and clients.

Malta on the European Stage

Further bolstering Malta’s profile, recent proposals by a Maltese MEP on maritime transport were adopted by the European Parliament. This achievement underscores Malta’s active role in shaping maritime policy at the European level. It also reaffirms Malta’s ability to punch above its weight in a sector that continues to expand in both scale and complexity.

Conclusion: A Flag of Confidence

From ship registration to yachting advisory, from compliance management to infrastructure investment, Malta offers a powerful combination of expertise, international credibility, and commercial flexibility. With its EU membership, central Mediterranean location, and strong maritime tradition, Malta continues to position itself as a preferred jurisdiction for marine and shipping operations.

At Asteria Advisory, we support local and international clients with tailored legal and corporate services across the shipping and yachting sectors. Whether you’re setting up under the Malta flag, registering a vessel, or exploring new opportunities in maritime operations, we’re here to help.

👉 Get in touch to discuss how we can support your maritime venture or regulatory needs.
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