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.
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.”