MFSA helping in investigation after fund collapse

gaffarena joseph

Mar 11th 2011, 09:00

Better if MFSA,will help and solve the preoblem regarding BOV, property fund.

wally vella-zarb

Mar 9th 2011, 19:15

It is not the MFSA that needs to get a life; it is the people who put their money into such 'investments'. I cannot, by any imagination, be called an 'investor'. However, there are two things that I have learned about investments: (1) "If it looks too good to be true, it probably is". (2) "The higher the expected return, the higher is the risk".

Offering 15% return is too good to be true in ordinary circumstances, let alone in today's world. By all indications released so far this was nothing more than an elaborate Ponzi Scheme where the 'interest' was being paid out of other people's 'investments', thereby making greedy punters very happy...until the house comes crashing down about their ears when the originator (who has meanwhile been stashing the money safely away) calls it a day and files for bankruptcy or disappears.

Unfortunately it is useless to warn greedy people who seem to have more money than brains that "A fool and his money are soon parted".

J Brincat

Mar 9th 2011, 18:41

Can the MFSA state how stringent they are when they issue a licence to these financial institutions?

What safeguards does it take to ensure that such institutions have the required expertise to give a sound financial advice?

What steps does it take to ensure that the conditions terms and conditions of the licence are adhere with at all times?

l fenech

Mar 9th 2011, 17:54

What a shame that no investors were informed of the situation from our end.

M. Cachia

Mar 9th 2011, 17:20

Was this "Fund" product sold to seasoned investors who have a lot of cash to risk, or was it sold to any type of client? With guaranteed returns of 15% I am sure that many wanted this product and could have been fooled into accepting it just like the VFM one!

MFSA get real and start cracking down on all those cowboys out there who are harming the industry which our politicians pride themselves as being a pillar of our economy.

Arthur Ripard

Mar 9th 2011, 17:14

what was the yield I wonder? Is it a matter of high risk, high return?

J BORG

Mar 9th 2011, 17:02

From what MFSA have commented on their website, the case is not yet closed and they are helping MFSP to make sure all Maltese clients get their money back. The court case proceedings are still very much in course, so it would be resposible to be cautios at this stage. I believe that this is how things should be done. And I am all for the Financail Services Industry and the MFSA working hand in hand for the better good of us, the investing public.

J Agius

Mar 9th 2011, 16:42

I had problems with monies invested both with BOV and now with MFSP. I must say that MSP are much more professional than BOV. They kept me in the loop since the problem commenced. They showed me all the proceeding in the Danish court against this investment and i am convinced that they are doing their utmost to retrieve our monies.

joe vella

Mar 9th 2011, 15:37

here we go again, the MFSA is now chasing lost sheep!
seriously the minister and the MFSA heads should start concerning themselves about the reliability of this entity as a custodian of the financial investment market
this is the second fiasco following the BOV multimanager property fund- MFSA is coming out as a reactive rather than a proactive authority,
again maltese investors have been slapped,out of the blue, with another failed investment plan
another investigation (s?) by the authority - is this what it is all about, investigating after the chicks have hatched and flown?
to date nothing about the findings and potential proceedings on the bov multimanager property fund, and now we go off on another investigation
when are the conclusions and consequential actions coming out and being taken
with all this extended time frame, if there has been any fishy goings on, the persons involved are being given more than ample time to hide their tracks or ruffle their feathers and in the meantime the fleeced investor can only wait on
ask the investors who attended the latest valletta fund management meeting re the property fund referred to above