The American entrepreneur who called herself part of ‘Team Malta’ a few weeks ago has decided not to domicile her fund here, saying that Malta was an “extremely difficult jurisdiction”.
Julie Meyer told investors last June that her UK-based fund would be redomiciled to Malta as a ‘notified alternative investment fund’. The fund was to be administered by Alter Domus. However, in the fund report for 2017 issued a few days ago, she said this would not be achieved, though planned by year’s end.
Ms Meyer told her investors in a regular update report: “We have found Malta to be an exceedingly difficult jurisdiction in which to work.
“Absolutely nothing was simple, and actions which should have been done in a matter of weeks took months and quarters to achieve. We have subsequently learned through our compliance director and other people in the know in Malta that investment firms are fleeing the country due to the toxic reputation of Malta and, frankly, a jurisdiction which just doesn’t work. In no way, shape or form can it become world-class for funds anytime soon.”
People in the know say investment firms are fleeing Malta due to its toxic reputation and a jurisdiction that just doesn’t work
Ms Meyer first made the headlines in Malta in mid-November when companies and former employees started resorting to legal action to get outstanding bills paid.
Her woes deepened after it emerged that two directors in her MFSA-licensed company had resigned, putting her in breach of regulations as the sole remaining director.
Read: Meyer insists her company is liquid, not probed by MFSA
This was followed by the news that her UK company Ariadne Capital had been put into administration. (Go to 5:40)
Ms Meyer claimed in an e-mail to shareholders two weeks ago that she had done this deliberately, as it was the only way she could regain control over the company – putting herself as the ‘secured creditor’ – and sidelining an executive she blamed for the company’s woes. She says the executive has since been fired. “I promise you that you’ll make a return on your investment in Ariadne – just need a little more time now.”
Her stand on Malta is a complete U-turn from the enthusiasm she expressed to potential investors, saying in an e-mail in September 2016 that the regulatory side of the Malta Financial Services Authority was “simpler and straightforward”, boasting of her close contacts: “The chairman of the MFSA is in very regular contact with me, tells everyone that it is seriously good news that Ariadne has come to Malta, hosted a dinner for me with my investors in early September where he positioned himself as an innovator in financial services and impressed everyone.”
The chairman of the MFSA is in very regular contact with me ... hosted a dinner for me with my investors in early September
However, the chairman, Joe Bannister, distanced himself from this claim when contacted and asked whether this was a conflict of interest, denying that the dinner was in her honour: “There was a working dinner for a number of representatives of foreign institutions to discuss financial regulation in Malta and the progress achieved so far.
“It is normal practice for regulators to hold dinners or lunches with potential promoters. Supervisors are not present for these,” he said, pointing out that, at the time, Ms Meyer was not under MFSA supervision, something which only happened once she bought a licensed asset management firm, Portcullis, two months later.