The financial services watchdog has clarified that a court-appointed administrator of a Maltese investment firm which went bust last year was not empowered to settle any pending claims with creditors.

Such transactions may only be done if the company is dissolved, through a liquidator, it said.

The case involves Maltese Cross Financial Services, whose operations were suspended by the Malta Financial Services Authority in August of last year following claims of misuse and manipulation of funds.

A total of 222 clients were affected and the shortfall in funds was of €6,475,000.

Last March the company directors filed an application for liquidation but the court last month upheld an MFSA request to appoint a provisional administrator pending its decision on the winding up request.

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