The Malta Financial Services Authority reacted today to remarks in Parliament by Labour MP Evarist Bartolo who asked how MFSA chairman Joe Bannister was a partner with one of the authority's own consultants in a company in the Cayman Islands.
In a statement, the authority said Prof. Bannister is not a business partner but a non-executive director of the mentioned fund and of four other schemes that have no association with Malta.
"Prof. Bannister’s involvement in international fund business is known to the Malta Financial Services Authority and to the public, both in Malta and overseas. His involvement is listed in his biography, which has been published in the local media when he gives presentations at conferences organised in Malta," the authority said.
"Prof. Bannister’s international involvement has been utilised by both the MFSA and various practitioners to solve complex problems in the funds sector."
The MFSA said that no director of any fund with which Prof Bannister is associated has received any contract by the authority.
"It is to be noted that Prof Bannister does not award any contracts. These are approved by the Board of Governors."
"Mention has also been made of Mr P Astleford of Dechert LLP who resigned from the fund in question in early 2007. Prof. Bannister has no business association with Mr Astleford who is the Senior Partner in financial services at Dechert LLP. Dechert LLP, considered one of the leading financial services legal firms in Europe, have had a long professional association with the MFSA, having helped the MFSA to develop and continuously refine the Professional Investor Fund [PIF] regime and the Special Funds Act which has been developed into the Retirement Pensions Act. They have recently assisted the MFSA in the discussions with the UK tax authorities on the tax transparency of the Maltese Limited Partnership."