Dozens of clients might still have investments with the company whose licence was suspended 10 days ago by the Malta Financial Services Authority.

The MFSA also revoked the approval given to the director of Maltese Cross Financial Services, Jean Claude Bugeja, to act as a director. It is still investigating the company to safeguard the interests of investors and better understand the circumstances that have led to the suspension.

What is clear is that Maltese Cross is not able to meets its obligations arising from any claims – and it does not seem that this situation will change in the foreseeable future.

Investors will get compensation from the Investment Compensation Scheme. The maximum payable from the scheme is €20,000 or 90 per cent of the investor’s eligible claims, whichever is the lower.

The company was only set up two years ago, resulting from the management buy-out of Island Financial Services, part of the Island Insurance Group. Mr Bugeja, 42, was the managing director of Island Financial Services and had been working as a financial advisor since he got his certificate in 2004.

At the time of the buy-out, Maltese Cross inherited a client base of around 150 clients, according to sources, although it is impossible to know whether this number increased or decreased over the past two years.

The last financial statements for Island Financial, for the year ended December 2012, showed that the company was financially healthy, with no red flags raised by auditors PwC.

The company had assets of €198,474 (2011: €291,382). Maltese Cross directors are Mr Bugeja, Robert Cutajar of Mosta and Stephen Spiteri of Swieqi. They are also the shareholders, along with Mr Bugeja’s wife Hermione.

Attempts to contact the directors were unsuccessful.

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