An investigation “is underway with regard to the manner in which the securities issued by LM Investment Management Limited were sold in Malta. The MFSA Consumer Complaints Manager will also consider complaints, including complaints of mis-selling, filed by investors who have acquired LM products through intermediaries licensed in Malta,” the regulator said in a written statement to International Adviser.
LMIM had assets under management last year of as much as A$3bn ($3.1bn), has been placed into voluntary administration.
The MFSA has not disclosed the names of financial intermediaries involved in the sale of LMIM products but it suggested other providers may also have been involved. “The Authority does not exclude that other investment services providers may have sold these products,” it said.
The regulator is also looking into the manner by which the securities issued by SNS Reaal Bank and LMIM were sold in Malta, according to a report in The Times of Malta newspaper.
According to press reports 631 Maltese investors have invested more than €14m in two Australian property-linked funds administered by LMIM.
Another 183 investors are reported to have bought close to €3m in high-interest bonds in SNS Reaal, the fourth largest bank in the Netherlands, that was nationalised by the Dutch government in February.
Investors in Reaal have formed a foundation to represent international bond holders from Greece, Germany, Italy Spain, Belgiumm and the UK.
The foundation is said by The Times to represent the interests of subordinated debt holders whose securities are estimated to value of about €1.8bn.
