A Constitutional Court has thrown out a complaint by a director of a bankrupt investment firm that a Malta Financial Services Authority directive to delay the liquidation of his company before it settled all its dues with its clients was in breach of his fundamental human rights.

Wallace Falzon, a director of All Invest, which is facing claims from several of its customers who lost thousands of euros worth of investments, claimed that the MFSA order was limiting his access to a court of law as protected by the European Convention of Human Rights.

Through this directive, the authority instructed All Invest to delay the winding up of its business "until the transfer of clients' holdings is completed in an orderly manner; until any pending complaints or court proceedings against it are determined by the courts and until the authority is satisfied that arrangements are in place for a proper safeguard of the company".

But the Constitutional Court, presided by Mr Justice Anthony Ellul said there was no such breach because Mr Falzon had appealed the MFSA decision before the Financial Services Tribunal on whom he called to revise the directive.

The court said that by ordering All Invest to delay the winding up of its business, the authority was not acting beyond its powers and therefore the company could not complain that the directive stopped it from starting bankruptcy proceedings in court.

Moreover, the Constitutional Court said the bankruptcy proceedings before another court were still pending and the directive issued by the MFSA did not stall those proceedings or impose upon All Invest to withdraw them.

This showed that the company's requests were being considered by the Law Courts, despite the directive.

The court also referred to conditions in the licence granted to All Invest which precluded the company from ceasing operations before obtaining the written consent of the authority. In addition, there was also a condition which stipulated that the MFSA could delay of a company's investment services business or the winding up of such business "so as to comply with conditions imposed by the MFSA in order to protect the interests of the customers".

Mr Justice Ellul therefore rejected the company's complaint. Sources said the company has appealed the decision.

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