Investors should seek 'real independent' advice
Investors still mulling about whether they should register their undeclared funds would do well to seek real independent advice from the Central Bank rather than go to a commercial bank or another financial intermediary who was interested in selling...
Investors still mulling about whether they should register their undeclared funds would do well to seek real independent advice from the Central Bank rather than go to a commercial bank or another financial intermediary who was interested in selling investment schemes on which commissions were made, Parliamentary Secretary Tonio Fenech advised yesterday.
Speaking to The Times when asked to elaborate on the extension by a month of the scheme launched by the Ministry of Finance in April, Mr Fenech said about Lm30 million had been registered but feedback by operators was that the take-up was low, and many tried to register in the last days but did not manage.
"We have now given people the option to deposit their funds at the Central Bank as some who had hoarded cash could have, for some reason, feared commercial banks. Now they can go to the Central Bank and deposit their money there to maintain confidentiality," Mr Fenech said.
"I am preoccupied by the campaign waged by intermediaries about this scheme. They advised against registration and, instead, encouraged people to invest with them, saying it was safe. Commercial banks launched trust accounts, but people have to realise there is no real confidentiality as the government can still ask who the funds belonged to. Other agents advised clients to invest in their funds.
"This is the last chance to declare any funds. If one feels one does not have enough information, or one feels misinformed, go to the Central Bank, which does not seek to make a commission or sell any products. Go seek advice from there," he said.
The funds registration scheme was launched in the run-up to the adoption of the euro as Malta's national currency on January 1. Its aim is to provide individuals residing in Malta a unique opportunity to regularise their position in respect of their holdings of eligible assets in those cases where the associated income has not been declared for the purposes of the Income Tax Act.
The scheme now closes on August 31.