Finco Treasury Management Ltd has submitted a 'very substantial' number of complaints on behalf of La Valette Multi Manager Property Fund investors to the Financial Services Arbiter in connection with the long running dispute these investors have had with La Valette Funds SICAV, its fund manager Valletta Fund Management Ltd  and with the Fund’s custodian (and primary sales intermediary), Bank of Valletta.

It said complainants consist both of investors who had received €0.75 per share in June 2011 as well of others who had received an additional €0.25 in January 2013.

Shares in the Fund had been bought at prices of up to €1.1650 per share, besides an initial charge of 4%.

All investors claimed not to have been correctly restored to their former financial position notwithstanding that the Fund had not been managed by VFM in accordance with the Fund’s Prospectus.

"Indeed the Investment Restrictions in the Prospectus meant to impede the Fund Manager from making speculative and very high risk investments had been manifestly, repeatedly and continuously breached in respect of the larger part of the investments made by the Fund, causing the Fund’s massive losses," Finco said.

"Furthermore, BOV as custodians had repeatedly issued reports to investors for successive years in which they wrongly confirmed that the fund was being managed in conformity to the prospectus. These allegations were confirmed by MFSA which also imposed record fines against BOV and VFM. The latter did not appeal the sanctions."

Finco said it looked forward to the full cooperation of BOV – "rather than overt and covert moves to undermine the process" - for the determination of this dispute by the Financial Services Arbiter, in line with the commitment made by John Cassar White, chairman of BOV and VFM as recently as December 2014.