The MFSA today issued an update of its investigation into the affairs of Maltese Cross Financial Services Limited.
The MFSA had suspended the operations of the company on August 7.
On August 12 the Authority took regulatory action against Jean Claud Bugeja, one of the three directors of the company, whereby the approvals granted to him to act as a director, compliance officer and money laundering reporting officer of the company were revoked.
The Authority also revoked its approval for Mr Bugeja to provide investment services and directed him to resign as a director, to desist from providing any financial services, including investment advice; to desist from carrying out any functions within the Company; and not to access the company’s records, IT systems and offices.
The MFSA said it established that the company has a material shortfall in clients’ assets, which appeared to have arisen from the possible misuse and manipulation of such assets.
As a consequence, certain investments which belonged to clients may have been lost.
"The Authority has taken and will continue to take the necessary action with the primary objective of safeguarding and protecting the interests of the company’s clients to the greatest extent possible."
The MFSA said it has informed the police about its findings.
While reminding investors that the Investor Compensation Scheme recently published a call for the submission of investor claims, the Authority recommended that investors should seek legal advice in order to identify any other legal action that may better safeguard their rights at law.