Hollingsworth International Financial Services Limited (the “Company”) was found by the Malta Financial Services Authority (“MFSA” or the “Authority”) to have acted in breach of a number of provisions of the Insurance Distribution Act, the Insurance Distribution Rules and the Investment Services Rules, which breaches took place during the tenure of Mr Mark Hollingsworth as director of the Company. The Company filed an appeal before the Financial Services Tribunal contesting the finding of the MFSA.

Having considered the goodwill demonstrated by the Company and Mr Mark Hollingsworth the Authority agreed to settle pending matters subject to a number of terms, inter alia

• Payment of an administrative penalty of €20,000 imposed on the Company;
• The Authority shall issue a reprimand against Mr Mark Hollingsworth, in his capacity as director of the Company, in relation to the breaches which took place during his tenure as director of the Company;
• Mr Mark Hollingsworth is inter alia precluded from holding any new directorship, senior management and/or any roles requiring the Authority’s approval, in any licensed entity authorised by the MFSA for a period of two years subject to certain derogations as approved by the MFSA. By way of exception to the foregoing prohibition, during the two-year period Mr Mark Hollingsworth may apply to the MFSA to act as an investment advisor with an investment services provider licenced by the MFSA to provide investment advice exclusively in relation to non-complex instruments;
• Mr Mark Hollingsworth is required to disclose to any entity in which he will be holding or holds a position about the findings of the Authority in the Company’s regard;
• The Authority shall accept the surrender by the Company of its investment services licence and its disenrollment from the Brokers List, which surrender has taken place in circumstance of regulatory shortcomings identified by the MFSA;
• The Company shall be prohibited from resolving to liquidate and wind-up until and unless it obtains the prior written approval of the Authority;
• The Company shall withdraw the pending appeals lodged against the directives issued by the Authority in its regard before the Financial Services Tribunal;
• The Company and/or Mr Mark Hollingsworth shall waive any claim or contestation in connection with the findings of the Authority before any judicial fora.

Moreover, the Authority’s decision as set out above shall continue to apply even when the Company ceases to hold its investment services licence and disenrolls from the Brokers List.