The Malta Financial Services Authority (MFSA) has imposed an administrative penalty of €160,000 (£137,925, $192,906) on MC Trustees (Malta).
The Maltese regulator said on 16 April that the firm “failed to adhere to its obligations” in terms of the Special Funds (Regulation) Act and the Pension Rules, the Retirement Pensions Act and the Pension Rules, as well as the Trusts and Trustees Act and the Trustees Code of Conduct.
It failed to “act in the best interests of the MCT Malta Private Retirement scheme and its beneficiaries” and also “acted in breach of its fidicuciary obligations as a trustee of the scheme”.
The company also neglected to “implement adequate internal control procedures to protect the scheme members from any financial losses” and “failed to ensure that the individual member accounts are adequately liquid at all times”.
MC Trustees also “did not ensure that all instructions and decisions affecting the scheme were in conformity with the law and the scheme particulars” and “did not implement adequate procedures for the effective handling of complaints resulting in inconsistent approach when classifying complaints as well as discrepancies in the recordkeeping of complaints”.
International Adviser has learned that the firm has appealed MFSA’s decision.
According to MC Trustees (Malta) website, its UK arm was sold to Mattioli Woods in September 2016. Mattioli Woods has no connection to the Malta operation.
