Administrative Measures and Penalties Archive
Date | Entity | Subject |
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Date | Entity | Subject |
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| 23/12/2019 | Portmann Capital Management Limited | On the 23 December 2019, the Malta Financial Services Authority (“MFSA”) revised the Directive of the 22 August 2018 issued to Portmann Capital Management Limited (“Portmann”), a company holding a Category 2 investment services licence, whereby it was directed, with immediate effect, to: (a) cease the on-boarding of new clients; and (b) cease any outgoing transactions from all clients’ accounts held by Portmann. This restriction shall also apply to intra client accounts. The MFSA has taken this decision in terms of the powers granted to it under Article 6(2)(a) and Article 15 of the Investment Services Act. On 20 September 2018, Portmann Capital Management Limited had submitted an appeal before the Financial Services Tribunal against the MFSA’s decision of 22 August 2018. The appeal is still on-going. On the 23 December 2019 the MFSA has decided that whilst maintaining both afore-mentioned restrictions in place, it has directed Portmann to address and implement remediation measures in view of serious internal control and governance weaknesses. Portmann has been granted a maximum period of one (1) year to implement all these remediation measures. The Authority has therefore decided that the above restrictions shall be maintained in full force until the afore-mentioned remediation measures are implemented, in part or in full, by the Company to the satisfaction of the Authority, at which point in time the Authority will consider the variation or withdrawal thereof. Should the Company fail to implement such remediation measures within the stipulated timeframe, the Authority will consider what other regulatory action may be warranted in the circumstances This Directive was not appealed before the Financial Services Tribunal within thirty (30) days from the date of notification. This notice is being published in terms of the powers vested in the MFSA under Article 16(8) of the Malta Financial Services Authority Act. |
| 18/11/2019 | E&S Consultancy Limited | On 18th November 2019, the Malta Financial Services Authority (“MFSA”) has taken the following regulatory action against E&S Consultancy Limited (“the Company”): In terms of article 6(1)(a)(b) and (e) of the Company Service Providers Act (Cap. 529 of the Laws of Malta), the MFSA has decided to cancel the Company’s registration granted to it under article 5 of the Company Service Providers Act, for breaches of articles 5(1)(a), 5(7) and 6(1)(a) of the Company Service Providers Act, and Rules 5, 13.04(e), 13.04(f), 16.06, 17.03 and 17.07 of the Rules for Company Services Providers; In terms of article 6(3) of the Company Service Providers Act, a Company whose registration has been cancelled shall, within sixty days from the date of cancellation of registration, ensure that the services it has been providing to companies or other legal persons in terms of its registration are transferred to another person which is duly registered in terms of this Act; Further to the above obligation set out in the law and in terms of article 11(1) of the Company Service Providers Act, the Company is directed to provide, from the date of the cancellation of the registration, bi-weekly updates to the Authority with respect to the transfer of business which is to be carried out in terms of article 6(3) of the CSP Act. In terms of article 21(17) of the Malta Financial Services Authority Act, the MFSA’s decision to cancel the Company’s registration shall not become operative until the expiration of the period within which an appeal lies under article 21 of the Malta Financial Services Authority Act and, if an appeal is made within such period, the said decision shall become operative on the date of the decision of the Financial Services Tribunal dismissing the appeal or the date on which the appeal is abandoned. Update: On 17th December 2019, E&S Consultancy Limited filed an appeal before the Financial Services Tribunal against the MFSA’s decision of 18th November 2019. |
| 16/05/2019 | Money+Card Payment Institution Ltd | On the 15th May 2019, the Malta Financial Services Authority (“MFSA”) has decided to restrict the licence of Money+Card Payment Institution Ltd (“the Institution”), in terms of article 6(4) (c) and (d) of the Financial Institutions Act, as follows: The Institution and all its officials or any connected persons or related persons thereto, whether direct or indirect, henceforth and until further notice, are to refrain, cease and desist, with immediate effect, from undertaking any activity for which they have been licenced in terms of the Financial Institutions Act. The Institution shall obtain the Authority’s prior written approval before effecting any other transactions related to the payment of salaries and essential services. This restriction is immediately applicable and shall remain operative until the Authority directs otherwise, including if the Institution, for whatever reason, ceases to hold a licence. This notice is being published in terms of article 6(8) of the Financial Institutions Act and article 16(8) of the Malta Financial Services Authority and as part of the MFSA’s standard enforcement policy. Updated 9 August 2019 Reference is made to the Malta Financial Services Authority’s (‘the Authority’) Media Release concerning Money+Card Payment Institution Ltd (‘the Institution’) dated 15 May 2019, whereby it was notified that the Authority restricted the licence of the Institution, in terms of Article 6(4) (c) and (d) of the Financial Institutions Act (‘the Act’). The restriction imposed was based on the following grounds: [i] the Institution no longer possesses sufficient own funds to cover the minimum required by law; and [ii] the Institution, due to the deficiencies at management and Board level, no longer meets its governance requirements in terms of Article 5(1)(d) of the Financial Institutions Act. Further to the above, on 10 June 2019, the Authority notified the Institution that after due consideration, given that the serious circumstances of the Institution subsisted, the following regulatory action was taken: [i] require the institution to wind up its business in accordance with the Authority’s power in terms of Article 17(1)(e) of the Act; [ii] direct the institution to take all the necessary steps to pass an extraordinary resolution for the dissolution and consequential members’ voluntary winding up of the Institution in terms of Article 16(2)(b) of the Malta Financial Services Act , including the appointment of the liquidator to be chosen from a list of persons provided by the Authority. Upon appointment of Dr Louis Cassar Pullicino as the liquidator, the Authority has on 09 August 2019: [i]removed the restrictions imposed on the institution in terms of Article 6(5) of the Act insofar as this is required for the liquidator to perform the duties necessary` for the winding-up of the business; [ii] withdrawn the licence issued to the Institution in terms of Article 6(1) of the Act. It should be noted that, in terms of Article 21(17) of the Malta Financial Services Authority Act, the Authority’s decision to cancel the Financial Institution’s licence shall not become operative until the expiration of the period within which an appeal can be filed, and if an appeal is made within such period, the decision shall become operative on the date of the decision of the Tribunal dismissing the appeal or the date on which the appeal is abandoned. This notice is being published in terms of Article 6(8) of the Financial Institutions Act and Article 16(8) of the Malta Financial Services Authority Act and as part of the MFSA’s standard enforcement policy. |
| 06/05/2019 | Signature Opportunities Fund SICAV plc | On 06 May 2019, the Malta Financial Services Authority (“MFSA” or “Authority”) cancelled, on regulatory grounds, the Collective Investment Scheme Licence of Signature Opportunities Fund SICAV plc (“the Scheme”), including the Licence granted to its only Sub-Fund, namely Eden Rock Fund, with immediate effect. In addition to the Scheme’s failure to satisfactorily address a number of post-licencing conditions which needed to be addressed prior to the commencement of any business, the Scheme was found to be in breach of the following article of the Investment Services Act (“ISA”) and Standard Licence Conditions (“SLC”) of Part BIII of the Investment Services Rules for Professional Investor Funds (“the Rules”): (i) Article 13(1) of ISA - Failure to cooperate with the MFSA and to furnish information and documents to MFSA as required; (ii) SLC 1.64 of Part BIII of the Rules - Failure to submit the Audited Financial Statements of the Scheme (iii) SLC 1.5 of Part BIII of the Rules - Failure to appoint an Investment Manager (iv) SLCs 1.22 and 1.28 of Part BIll of the Rules - Failure to appoint a Compliance Officer and a Money Laundering Reporting Officer (MLRO); (v) SLC 1.65 of Part BIll of the PIE Rules - Failure to settle Supervisory Fees The Authority has taken this decision in terms of the powers under Article 7(3)(b) of the Investment Services Act. This notice is being published in terms of the powers vested in the Authority under the provisions of the Malta Financial Services Authority Act. It should be noted that the MFSA decision to cancel the Scheme’s collective investment scheme licence shall not become operative until the expiration of the period within which an appeal can be filed, and if an appeal is made within such period, the decision shall become operative on the date of the decision of the Tribunal dismissing the appeal or the date on which the appeal is abandoned. |
| 29/04/2019 | Mare Nostrum Melita Limited | On the 25th of April 2019, the Malta Financial Services Authority (“MFSA”) has taken the following regulatory action against Mare Nostrum Melita Limited (“the Company”): [i] In terms of article 46(b) of the Trusts and Trustees Act, the MFSA has decided to cancel the Company’s authorisation, granted to it under article 43 of the Trusts and Trustees Act (Cap. 331 of the Laws of Malta), for breaches of article 43(13)(i)(c), 43(13)(i)(f) and 43(14) of the Trusts and Trustees Act, paragraphs 5.0, 6.0, 9.4, 9.6 and 11 of the Code of Conduct for Trustees and Regulation 4(1) of the Trusts and Trustees Act (Fees) Regulations (L.N. 356 of 2008, S.L. 331.01); and [ii] In terms of article 51(7) of the Trusts and Trustees Act, the MFSA has decided to impose on the Company an administrative penalty amounting to eight thousand Euros (EUR 8,000), for the infringements of the above mentioned Articles of the Trusts and Trustees Act, Code of Conduct and Trusts and Trustees Act (Fees) Regulations. In terms of article 21(17) of the Malta Financial Services Authority Act a decision to cancel the licence shall not become operative until the expiration of the period within which an appeal lies under this article and, if an appeal is made within such period, the decision shall become operative on the date of the decision of the Tribunal dismissing the appeal or the date on which the appeal is abandoned. This notice is being published in terms of the powers vested in the Authority under Article 16(8) of the Malta Financial Services Authority Act. |
| 18/12/2018 | NOVUM BANK LIMITED | On 16 November 2018, the Malta Financial Services Authority ("the Authority") decided to impose an administrative penalty on Novum Bank Limited of eighty thousand and five hundred Euro (€80,500) after the bank was found to be in breach of Article 11(2) of the Banking Act and of Regulation 10 of the European Passport Rights for Credit Institutions Regulations. The administrative penalty was imposed by the Authority in terms of the powers granted under Article 35A(1)(c) of the Banking Act and Regulation 4(1) and (2) of the Administrative Penalties, Measures and Investigatory Powers Regulations (S.L.371.05). The bank had 30 days from the notification date to appeal to the Financial Services Tribunal. However, no such appeal was filed by the bank. This Notice is being published in terms of the powers vested in the Authority under Article 35B of the Banking Act. |
| 12/12/2018 | Novium AG Investment Solutions | On 12 December 2018, the Malta Financial Services Authority issued a directive to Novium AG Investment Solutions (“the Company”), a company domiciled in Switzerland and supervised by the Swiss self-regulatory organisation Verein zur Qualitätssicherung. The Company was previously the appointed Investment Manager of Novium Opportunity Umbrella SICAV plc, Excellence Investment Umbrella SICAV plc and Public Private Real Estate Funds SICAV plc in terms of an exemption laid down in Regulation 3(1)(h)(ii) of the Investment Services Act (Exemptions) Regulations. By means of the directive, the Authority hereby prohibits the Company from: (a) undertaking any investment services activity in terms of the Investment Services Act for a period of four (4) years applicable from 12 December 2018; and (b) operating under any exemption permitted in terms of the Investment Services Act (Exemptions) Regulations for a period of four (4) years applicable from 12 December 2018. The MFSA has taken this decision in terms of the powers granted to it under Article 15 of the Investment Services Act. This notice is being published in terms of the powers vested in the MFSA under Article 16(8) of the Malta Financial Services Authority Act. UPDATE The Authority’s decision was appealed before the Financial Services Tribunal within the period established by law. |
| 05/11/2018 | PILATUS BANK PLC | Public Notice regarding Pilatus Bank Further to the Authority’s proposal to the European Central Bank (ECB) to withdraw the authorisation of Pilatus Bank as a credit institution, the ECB’s Governing Council has decided to withdraw the authorisation of Pilatus Bank with effect from today. The Competent Person remains in control of Pilatus Bank in terms of the Banking Act as communicated in Public Statement 03/2018 dated 2 April 2018. All of the regulatory measures taken in relation to the bank remain in full force and applicable until further notice by the Authority. Further information may be obtained by accessing the Authority’s webpage www.mfsa.mt. Any communication in relation to Pilatus Bank should be addressed to the bank on 356 2779 9999 or the Authority on contact number Freephone 80074924. |
| 20/10/2018 | SATABANK P.L.C. | Public Notice Concerning Satabank plc This notice is being issued with respect to Satabank p.l.c., (“the Bank”) holding a credit institution licence in terms of the Banking Act (Chapter 371 of the Laws of Malta) (“the Banking Act”), having registration number C66993 and operating from Aragon Business Centre, Level 3, Dragonara Road, St. Julians STJ 3140. The Authority is hereby notifying the public that, pursuant to the Authority’s powers in terms of Article 9 and 4B of the Banking Act, Satabank plc has been directed as follows: i. to refrain, cease and desist from taking further deposits into accounts of its current customers, (this includes the acceptance of any payment in any account of a customer held with the Bank); ii. to refrain, cease and desist from accepting any new customers; iii. to refrain, cease and desist from affecting or processing any withdrawal or outward transfers from any accounts held by the Bank; iv. to refrain from effecting any transfer, sale, placement or any other movements of the Bank’s or the customers’ assets; v. to retain and preserve all records, data and documents relating to its business and its clients, including those on the Bank’s IT systems and networks whether in Malta or in any other jurisdiction, as well as any other documentation which relates in any way, whether directly or indirectly, to the business of the Bank; vi. to ensure that all such records, data and documents, in whatever form and however stored, are kept safe and not altered, destroyed, erased, concealed or disposed of in any manner; and vii. to ensure that all such records, data and documents, in whatever form and however stored, are accessible at any time to the Authority and/or to any person appointed by the Authority in terms of law. The Authority has also upgraded the appointment of the Competent Person EY (Ernst & Young) from an appointment in terms of article 29(1) (b) of the Banking Act (as communicated under the MFSA Public Notice dated 15th October 2018) to an appointment in terms of Article 29 (1) (c) and (d) of the same Act to conduct the following: i. take charge of the assets of the Bank for the purpose of safeguarding the interests of depositors; ii. assume control of the Bank’s business and to carry on such functions as the Authority may direct. The above regulatory measures have been issued with immediate effect and shall remain in place until the Authority directs otherwise. The Authority shall be closely monitoring any developments which may ensue in relation to the Bank, which could justify the maintenance, variation or withdrawal thereof. Any communication in relation to the Bank should be addressed to the Bank on the following number (+356) 2247 7999 or 2247 7900 or email: customersupport@sata.bank UPDATE The Authority’s directives and decision were partially appealed before the Financial Services Tribunal within the period established by law. |
| 15/10/2018 | SATABANK P.L.C. | Public Notice Concerning Satabank plc This notice is being issued with respect to Satabank p.l.c. (“the Bank”) holding a credit institution licence in terms of the Banking Act (Chapter 371 of the Laws of Malta) hereinafter ‘the Banking Act’, with registration number C66993 and operating from Aragon Business Centre, Level 3, Dragonara Road, St Julians STJ 3140. Pursuant to its powers in terms of Article 29(1)(b) of the Banking Act, the MFSA has appointed Ernst and Young Ltd (EY) as a competent person to advise and monitor the Bank in the proper conduct of its business. This measure has been taken in order to ensure good governance and controls and the implementation of remedial measures in line with the MFSA’s supervisory requirements as mandated by law. The bank continues to meet its financial prudential requirements. This regulatory measure shall remain in force until such time as the MFSA shall otherwise direct and shall be without prejudice to any further regulatory action. Any communication in relation to the Bank should be addressed (to the Bank) on the following number +356 2247 7900 or email info@sata.bank. |
