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Regulatory Action against Malta Capital Management Limited – MFSA

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On 11 June 2020, the Malta Financial Services Authority (“MFSA” or “Authority”) cancelled, on regulatory grounds, the Category 2 Investment Services Licence of Malta Capital Management Ltd (“the Manager”).

In addition to the Manager’s failure to satisfactorily address a number of breaches, which needed to be rectified following the suspension of its licence on 12 December 2017, the Manager did not seek to take any corrective actions or initiatives to restore its business operations and was found to be in breach of the following Standard Licence Conditions (“SLC”) of Part BIII of the Investment Services Rules for Investment Services Providers (“the Rules”):

[i] SLC 8(a) of the Rules – Failure to notify the MFSA in writing and at least one month in advance of a change in its business name;

[ii] SLC 22 of the Rules – Failure to have a Compliance Officer in place;

[iii] SLC 29 of the Rules – Failure to act honestly, fairly and professionally in accordance with the best interests of its clients;

[iv] SLC 35 of the Rules – Failure to maintain sufficient financial resources;

[v] SLC 38 of the Rules – Failure to have in place an Auditor; and

[vi] SLC 40 of the Rules – Failure to submit the Audited Financial Statements from 31 December 2015 to 31 December 2019.

The Authority has taken this decision in terms of the powers under Article 7(2)(b) and (d) of the Investment Services Act.

This notice is being published as part of the Authority’s standard enforcement policy and in terms of Article 25(1) of the Investment Services Act and Article 16(8) of the Malta Financial Services Authority Act.

It should be noted that the MFSA decision to cancel the Manager’s investment services licence shall not become operative until the expiration of the period within which an appeal with the Financial Services Tribunal can be filed as stipulated in Article 19 of the Investment Services Act or as otherwise determined by Law, and if an appeal is made within such period, the decision shall become operative on the date of the decision of the Financial Services Tribunal dismissing the appeal or the date on which the appeal is abandoned.

Regulator Information

Abbreviation: MFSA
Jurisdiction: Malta

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