Administrative Measures and Penalties


In terms of article 4(1)(c) of the Malta Financial Services Authority Act, one of the MFSA’s functions is to keep the general public informed of important developments in the sector that it regulates, and to provide the public with relevant information and guidance. Article 16(8) of the Malta Financial Services Authority Act also provides that:

Any administrative or disciplinary sanction or measure, of whatever type, including reprimands or warnings, imposed or decided by the Authority under any law for whose administration it is responsible, shall be published in such medium and in such manner and for such duration as may be deemed warranted by the circumstances and the nature and seriousness of the breach or wrongdoing. 

The MFSA is obliged to make public all sanctions and penalties it imposes on its licence-holders so that the general public will be better informed. The current MFSA policy on publication is that after a licence-holder is notified of the MFSA’s decision to impose a penalty or administrative sanction, the MFSA shall publish a notice of the sanction on its website and in such other media deemed appropriate in the circumstances. Where and as applicable, the notice published on the website will indicate clearly whether the penalty or sanction is currently being appealed against. Publication on the MFSA website is based on the following criteria:

  1. A notice to the public in respect of a fine not exceeding € 3,000, a warning, a reprimand or other minor infringement shall remain posted on the website for a minimum period of two (2) years.
  2. A notice to the public in respect of a fine exceeding € 3,000 but not exceeding € 25,000, or of more serious infringements shall remain posted on the website for a period of five (5) years.
  3. A notice to the public in respect of serious infringements, including suspension or restriction of a licence for regulatory purposes (not a voluntary request for suspension or restriction) and fines exceeding € 25,000 shall remain posted on the website for a period of ten (10) years.
  4. A notice to the public in respect of a cancellation of a licence for regulatory purposes (not a voluntary surrender) shall not be removed from the web-site.
  5. A warning of a general nature shall be removed from the web-site only when it is established that there is no further threat to the public. The removal of such warnings is not tied to a pre-determined number of years.   The MFSA seeks to ensure high standards of conduct and management throughout the financial system.

The MFSA believes that the naming of persons, including licence-holders that have been sanctioned for breaching provisions of law, will lead to a greater awareness of the standards which should guide the activities and the conduct of operators in the financial services industry.

 

The MFSA has updated the administrative measures and penalties format for decisions issued as from 2020. Any administrative measures and penalties issued prior to 2020 can be found here.

Kindly note that these notices are intended as a summary of the Authority’s decisions and, accordingly, are not the actual decisions themselves.

JUNE 12, 2020
The Malta Financial Services Authority (“MFSA” or “Authority”) cancelled, on regulatory grounds, the Collective Investment Scheme Licence of MCM Global Opportunities Fund SICAV plc, including the Licence granted to its only Sub-Fund, namely Global Equity Opportunities Fund. Address: Vi ...
JUNE 12, 2020
The Malta Financial Services Authority (“MFSA” or “Authority”) cancelled, on regulatory grounds, the Category 2 Investment Services Licence of Malta Capital Management Ltd. Address: Level 3, 6 Market Street, Floriana FRN 1082 Business Activity:  De Minimis Alternative Investment ...
JUNE 12, 2020
The MFSA decided to proceed with the cancellation of the Company’s Alternative Investment Fund Manager Licence. Following the suspension of the Company’s licence by the MFSA in May 2018, it remained in breach of the Standard Licence Conditions of Part BIII of the Investment Services Rules for In ...
JUNE 11, 2020
The Malta Financial Services Authority has issued a number of directives to RES Malta Ltd. as a consequence of the regulatory action taken against Dr. Christian Ellul and Mr. Karl Schranz on 8 May 2020. Address: Palace Court, Church Street, St. Julians STJ3049 Malta Business Activity: re ...
JUNE 08, 2020
The Malta Financial Services Authority (“MFSA”) decided to proceed with imposing a notional administrative penalty of €475,192 in accordance with the law due to serious regulatory breaches of the Insurance Business Act Chapter 403 of the Laws of Malta and the MFSA Act, Chapter 330 of the Laws ...
MAY 19, 2020
The MFSA decided to proceed with the cancellation of the Collective Investment Scheme Licence of the Scheme, including the Licence granted to its remaining five Sub-Funds, namely Sub-Fund A - Global Managed Futures, Sub-Fund B - Equity Hedged, Sub-Fund C - High Leverage Managed Futures, Sub-Fund I - ...
MAY 11, 2020
The Malta Financial Services Authority issued a number of directives to Solv International Ltd. as a consequence of the regulatory action taken against Dr. Christian Ellul and Mr. Karl Schranz on 8 May Address: 2, Spinola road, St. Julians STJ3014 Malta Business Activity: authorised to a ...
MAY 08, 2020
The Malta Financial Services Authority (“Authority”) decided to proceed with issuing a number of directives to Dr Christian Ellul. BREACHES Dr Ellul has been found to have acted in breach of/not satisfying the following: [i] Article 5(1)(c)(iii) of the Company Service Providers Act, Rul ...
MAY 08, 2020
The Malta Financial Services Authority (“Authority”) decided to proceed with issuing a number of directives to Mr Karl Schranz. BREACHES Mr Schranz has been found to have acted in breach of/not satisfying the following: [i] Article 5(1)(c)(iii) of the Company Service Providers Act, Rule ...
MAY 07, 2020
The Malta Financial Services Authority decided to proceed with imposing an administrative penalty of twenty-five thousand seven hundred Euro (€25,700). Address: The Landmark, Level 1, Suite 2, Triq L-Iljun, Qormi QRM3800 Malta Business Activity: Intermediaries - Insurance Managers List ...