Updated 9.15pm - The MFSA has directed KPMG Malta to assume control of Falcon Funds Sicav after an investigations which started in December 2015.

The MFSA had previously issued two directives regarding the scheme, which is also being investigated by the Swedish authorities over its sales practices.

The fund reportedly owes some €247 million to Swedish pensioners.

The fund is based in Malta and has former minister Tonio Fenech as one of its directors.

COMPANY REACTION

In a reaction, the directors of Falcon said they welcomed the decision by the MFSA to appoint KPMG to manage the process of the sale of the remaining assets in the Sicav.

"The directors of Falcon Funds Sicav plc had suspended Temple Asset
Management from acting as the manager of the Sicav, following revelations of
a number of issues pertaining to the investment decisions made by Temple,
that had negatively impacted the investments of the Sicav.

"Temple Asset Management as the manager was responsible for the
investment decisions relating to the assets of the Sicav.

Falcon Funds Sicav pointed out that it had instituted legal proceeding against Temple Asset Management.

"In the circumstances the directors of the Sicav agree with the appointment of
KPMG. The directors of the Sicav will assist KPMG in the execution of their
mandate."

The statement was signed by Tonio Fenech, Joseph Xuereb and Ian Zammit.