Out of court settlement has been reached for all La Valette Property Fund investors handled by Finco Treasury Management, who had not accepted the bank’s 75c per share conditional offer of May 2011.

Finco said in a statement this morning that agreement was also reached with the complainants of misselling in the sale of perpetual securities such as Lehmans by Bank of Valletta.

Finco said that a just and equitable solution for the 2,500 investors in the property fund, who were offered 75c compensation per share, continued to be elusive.

It noted that that its claims relating to mismanagement of the fund, including investment by Valletta Fund Management in underlying funds in breach of the fund’s investment restrictions, the repeated issue of incorrect custodian reports by BOV, as well as misspelling practices, were all confirmed in three separate reports into the investigations of the MFSA.

The investigations resulted in record administrative sanctions and penalties and the findings were not appealed.

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