The financial turmoil and its effect on investors

During the course of the year, the Consumer Complaints Unit within the MFSA receives a number of complaints, contentions and queries from members of the public. The unit aims at offering assistance to ensure that complaints are considered at the appropriate level within the organisation involved although it is not the role of the unit to act as Financial Services Ombudsman.

Many investors faced the reality of the financial turmoil which hit the markets around the last quarter of 2008. During the last quarter, the Consumer Complaints Unit received a substantial amount of queries on investments, mainly triggered by unrealised losses in portfolio values. The unit also carried out a detailed review of the impact of the financial turmoil brought about by the collapse of Lehman Brothers during September 2008. Analysis of the data is ongoing.

The decrease in the value of portfolios has led many investors to lodge complaints with MFSA against their financial intermediaries.

The decrease in values of portfolios on its own does not constitute valid grounds for lodging a complaint against financial intermediaries.

Further information can be accessed from timesofmalta.com. The Consumer Complaints Annual Report 2008 may also be downloaded from the Consumer Complaints website on www.mfsa.com.mt/consumer.

Skills Gaps Action Plan launched

An Action Plan drawn up by the MFSA Education Consultative Council following the Skills Gaps Survey carried out by the MFSA in August 2008 was launched on May 20 at a meeting with guidance teachers working within government, church and private schools. The meeting was attended by Tonio Fenech, Minister of Finance, Investments and the Economy; Dolores Cristina, Minister of Education, Culture, Youth and Sport; Joseph Bannister, chairman of the MFSA and Charles Farrugia, chairman of the MFSA's Education Consultative Council.

The event highlighted the importance of generating awareness at secondary level of the working opportunities available in the financial services sector and the skills, qualifications and attitudes required by prospective employees in this area. Financial services are earmarked as one of the main economic pillars within the government's 2015 vision for Malta.

The launch also included the inauguration of a Job Shadowing Pilot Scheme thanks to which about 50 fourth formers from government, Church and independent secondary schools will be given the opportunity to "shadow" a number of jobs at the offices of 14 operators involved in the different sectors of the financial services industry. Each programme will be carried out over a number of days and will also be monitored by a mentor. As explained by Prof. Bannister and Prof. Farrugia during the launch, the Action Plan brings together a number of collective initiatives that will be undertaken by the MFSA and other members of the Education Consultative Council to promote financial services related careers and to further collaboration between stakeholders involved in training and employment within the sector.

The Action Plan also includes concrete measures aimed at introducing the necessary training required to fill the skills gaps identified in the MFSA survey. Other aspects of the Action Plan cover continuous professional development and address the ways and means for making these initiatives more accessible to small and medium sized firms operating in the sector.

A copy of the Action Plan may be downloaded from the Reports and Publications section on the MFSA website: www.mfsa.com.mt.

Further information including: MFSA Consultations; New Rules and Legal Notices; New Licences Issued during April / May and Events can be accessed from timesofmalta.com.

The MFSA is also producing an extended electronic version of its monthly newsletter. This may be downloaded from the Publications section on the MFSA website or requested by email addressed to communications@mfsa.com.mt.