Two companies and six individuals have accused MFSP Financial Management Limited of abusing of their lack of knowledge in financial services and losing their investments, amounting to a total of €212,000.

MFSP is facing renewed accusations of negligence with clients' savings, with investors claiming it had sold them services that were unsuitable for retail clients like themselves.

The judicial protest was filed by Gennaro Camilleri, Genick Company Limited, Giulio Camilleri, Joseph Camilleri and his wife Romina, Paul Camilleri and his wife Anna Maria and Marketing and Consultancy Limited.

The group of investors, who are brothers, as well as the two companies, are claiming that the company failed to carry out a basic due diligence exercise on the fund in which it was investing their money in the British Virgin Islands.

In their judicial protest they held that MFSP invested their money in high-risk investments when the company knew that they only qualified as retail clients and when it knew these products were not suitable and appropriate for them.
They also accused the company of taking advantage of their lack of knowledge to make them sign documents they did not understand.

MFSP Financial Management was fined €12,000 by the MFSA in October 2012 and had its licence to sell complex products restricted for three years, after an investigation into sales practices determined that in a number of instances MFSP had failed to act in the best interest of investors.

The company has appealed this decision.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.