Although the Malta Financial Services Authority has various functions and powers arising from legislation regulating financial services, it is not a court of law and cannot act as an arbitrator in disputes that may arise between a licence holder and its clients, it said this morning.
The MFSA said in a statement that specifically in the area of consumer complaints, its recommendations did not bind the financial entity or the complainant.
"Consequently, there may be cases where a licence holder or the consumer, or both, may choose not to accept the MFSA's recommendations," it said.
The MFSA noted that it has published various statements regarding the lines of enquiry in relation to the La Valette Multi Manager Property Fund Sicav, which it is pursuing
The first report on the authority's findings was published in June, and two of the licence holders involved in the fund were fined a total of €347,816 for regulatory breaches.
Other lines of enquiry have examined whether the Fund was sold to investors who were not eligible, and the allegation that persons connected to the licence holders divested their holdings when in possession of information which was not in the public domain, and has arrived at its conclusions on these two investigations.
"The process is now at a stage where all involved parties will be asked to submit representations to the authority," it said.
The authority said that, as with the first investigation, should it determine that a person who holds a licence, or any other person, has contravened any provision of law or of any regulations, it will impose appropriate administrative sanctions, and publish a statement to that effect.
"Until the publication of such a statement, all proceedings are subject to strict rules of confidentiality."
It said that its consumers complaints manager will inform a complainant whether a case is closed or not, and will recommend that the consumer seek independent professional advice, especially if she/he is not satisfied with the outcome of the complaint.
"In all cases, however, an investor's right to obtain compensation through the legal/judicial process remains unimpaired," the MFSA said.