Updated - BOV pays inexperienced investors
Updated - Adds BOV statement - Most of the investors in the La Valette Multi Manager Fund who were eligible for further compensation from Bank of Valletta have received their credits direct into their account, and others will be receiving cheques shortly, the Malta Financial Services Authority said.
It said that BOV wrote to all clients involved, informing them of the decision in the Mazars Report, concluded this month, which was to provide additional compensation to investors who did not quality as “experienced investors” as defined in the terms of the fund’s supplementary prospectus.
The MFSA said it will be publishing the report prepared by Mazars, which sets out the methodology used, the conclusions and the number of BOV clients who were considered to be due compensation under the terms of this review. Those investors will have effectively received €1 for every unit invested.
The MFSA said it has also updated the Question and Answer document on its website, that sets out many of the issues raised by consumers during the investigation.
BOV REACTION
In a reaction, BOV’s Chief Executive Officer Charles Borg said: “The bank has cooperated fully with the independent review and now that these payments – including the ex-gratia payment of €0.75 per share made unilaterally by the Bank in June 2011 - have been made, we welcome the opportunity to close this issue.
“In the meantime, the bank engaged an international financial services consultancy firm to carry out a comprehensive review of its procedures to learn from the experience and to benchmark against best-in-class standards. This enabled us to move forward to ensure that we could offer our customers a better service. This has resulted in a number of procedural changes, considerable staff training, and also organisational changes, such as the opening of investment centres which offer our customers the chance to seek expert advice in a more discreet and professional environment.”
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G Tonna
Jan 23rd, 07:22
No investor deserves to get his money back if the investment goes wrong. A person who says he can be misled into a wrong investment is a cheat. Everyone knows that even the most experienced investors do not get it right many times.
Elvin Muscat
Jan 23rd, 07:15
I am rather impressed, other foreign banks simply wound up the business section and left people penniless or made meagre and insolent payments, yet BOV paid almost in full to everyone (some people's comments below are quite baseless really).
I wonder if BOV would pressure the Government to solve and compensate National Bank of Malta issue once and for all, for the good of the new Bank investors.
Elisa Grech
Jan 22nd, 23:06
I am an inexperienced investor.So much so that I have BOV's letter which states that I am a Retail Investor. Moreover I insist that I never invested US$ 50,000 therefore it transpires that my procedure was manipulated by the Intermediary, JMFS. As yet I have not been refunded. MFSA please note what is required of me to make me eligible for compensation ?
john izzo
Jan 22nd, 22:30
This is unfair.Since there were high ranking officials who withdrew their investment before the latter collapsed, compensation should be given to each and every investor not just those who were identified as inexperienced.Having some money previously invested in another fund directly through Valletta Fund management does not make you exactly an expert investor.
Peter Murray
Jan 22nd, 21:29
TONI BORG-Put it under the mattress like I do as it is more safe there and will earn you as much interest! Why give these banksters the wherewithal to continually rip you off and you actually underwrite your own deposits in the bank -via the Depositors Compensation Scheme-and not these financial terrorists who contribute nothing.The world is in this mess now becauce of these rapacious banksters
matthew tanti
Jan 23rd, 16:11
i guess thieves must be rubbing their hands at this news! if you have nio monies invested in banks i wonder why you go to all this trouble
A. Mifsud
Jan 22nd, 21:13
The most hilarious aspect of this satirical 'audit' was the criteria on which investors qualified or did not qualify as 'experienced investors'.
How on earth could anyone justify such poor reasoning? Why didn't they call it a means test instead!
and MFSA permitted all this nonsense!
Pauline Abela
Jan 22nd, 20:07
The BOV Property Fund was a farse from the beginning. I am not an experienced investor being told so by the Bank itself. I have not received anything. I am entitled for an explanation and for sure to close all my accounts if BOV decides contrary
matthew tanti
Jan 23rd, 16:10
i dont think your accounts will make a difference. if you werenot experienced according to the prospectus criteria (not according to what you think is experienced) you would have been compensated.
vincent Lia
Jan 22nd, 19:38
Who fines MFSA? This independent watchdog should have realized what was going on, especially with stupid adverts of people waiting in the streets for their dividends. The money the BOV is paying out as compensation comes from the profits and those that invested directly in the banks shares or indirectly through a savings plan or insurance policy will have dividends or profits reduced.
Peter Murray
Jan 22nd, 19:28
Banks only function via the OPM principle(OTHER PEOPLES MONEY) specifically savers/depositors /nvestors yet all you bank-lovers out there appear pefectly willing to allow them to give the life-blood to their very existence(you savers)carte blanche to rob and steal from you with paltry returns whilst they continue to reap mighty profits courtesy of your trust.All are laughing at the bank-at you.
matthew tanti
Jan 23rd, 16:08
i wonder why you invested in the first place if you are so intelligent
C Cassar
Jan 22nd, 19:11
No one should have been "compensated" as with any other investment, the value can go down as well as up. Quite incredible that people got money because one of their investments went down.
P. Ciantar
Jan 22nd, 21:26
in this case there should have been A compensation as the investment was unsuitable to 99 per cent of the people who are retail . Other companies has similar funds and made a loss but as they are professional investor they do not qualify for compensation . The same applies to bond funds equity funds that can be sold to retail clients and there is no capital guarantee . No risk no gain
Adrian P. Cassar
Jan 23rd, 06:45
Dear C Cassar,
These people were NOT compensated because the value of their investment went down.
They were compensated because they were sold something they should NOT have been sold.
Some forms of investment are specifically aimed at experienced investors, MFSA specifically PROHIBITS from selling to non experienced individuals.
P. Ciantar
Jan 23rd, 07:12
well said Adrian
Shawn Abela
Jan 22nd, 18:37
This situation is ridiculous. What were the terms and conditions?
I was an inexperienced investor, nothing else was invested bar the sum in the multimanager property fund, i was poached directly by a BOW member of staff and yet i have no letter, no cheque and nothing was deposited in my account.
I expect a solution.
matthew tanti
Jan 23rd, 16:07
i am sure the facts are not as you say. and shouldn't you have seen the terms and condition before you invested?
Joseph Apap
Jan 22nd, 18:33
Why should BOV customers close their accounts
I have been a client of the National Bank and after with BOV
and I do not intend to close any of my accounts
Peter Murray
Jan 22nd, 18:26
Also if those who received compensation had their money transferred directly into BoV accounts I would suggest they close them forthwith.
Toni Borg
Jan 22nd, 18:42
Why's that???
Other investors with other institutions also lost somes of money and were not compensated!!!
Should these then also follow your advice? Where do you suggest we put our savings?
Josephine Muscat
Jan 22nd, 20:35
Stupidity at its best.... Just look around and you realize how many other investors invested with various other institutions and lost a good portion of their capital... Who invests needs to understand the risks involved.
P. Ciantar
Jan 22nd, 20:41
tony the property fund was meant for professional investora only . All other funds that are for retail clients can go up and down and there is no guarantee on investment and If there is a loss there is no compensation . Please read how the funds work worldwide prior to commenting
Peter Murray
Jan 22nd, 18:24
how many is MOST and how many remain to be compensated?Why not all?Did they receive any back-interest payments?
matthew tanti
Jan 23rd, 16:06
nahseb dawk li ma thallsux kellhom bizzejjed esperjenza hux!
Please choose the reason of your report below: