Labour Spokesman for Financial Services Charles Mangion said on Wednesday morning that a year has passed since the Malta Financial Services Authority (MFSA) published the results of its investigation into the way the Bank of Valletta managed the La Valette Multi Manager Property Fund and broke the financial regulations of the fund. MFSA has yet to publish the results of another investigation into the same fund about mis-selling.
Mangion said that hundreds of investors and their families are anxiously waiting for MFSA to tell them whether their complaints are justified that they were sold schemes designed not for them but for experienced investors and a as result they lost a lot of the money that they saved with great sacrifices.
Mangion said that on 23 August 2011 MFSA had said in a pres release that it had already reached its conclusions about these complaints of mis-selling. On 3 November 2011 in another press release MFSA had said that it would publish the results of investigation by the end of 2011. PL urges MFSA to publish this report.
Mangion believes that this issue has now dragged on for two years and MFSA had enough time to publish its investigation results to address the legitimate complaints of citizens
Mangion said that it is totally unacceptable that a public authority like MFSA abandons hundreds of badly hit investors – most of them pensioners and other inexperienced investors – and leaves them to suffer without offering them any remedies.
Mangion also believes that the La Valette Multi Manager Property Fund continues to break MFSA’s regulations because it is still trying to attract new investors on e the basis of its 10 August prospectus which has not been updated and modified to take into consideration the conclusions published by MFSA in May 2011 after its investigations.