The Malta Financial Services Authority (“MFSA”) decided to proceed with imposing an administrative penalty of one hundred and fifty thousand euros (€150,000) and directed Dennis Muscat to cease the activity of introducing investment services clients to locally licensed investment firms for a period of ten (10) years.
Business Activity: Unlicensed Investment Services
BREACHES
The MFSA determined that Dennis Muscat has acted in breach of Article 3 of the Investment Services Act (''ISA'') by providing investment services without a licence on a regular and habitual basis.
REGULATORY ACTION
On 3 June 2020, the MFSA had directed Dennis Muscat with immediate effect in terms of Article 15 of the ISA and Article 16 of the MFSA Act to:
- Cease the provision of any financial services which requires prior authorisation from the MFSA, including the provision of investment services as defined under the applicable law; and
- Refrain from destroying, altering or amending in any way documentation, whether electronical or physical held by yourself or any service provider related to the introductory services, as well as any other financial services, including investment services of any type, which you may have provided to third parties.
On 18 September 2020, the MFSA decided to impose an administrative penalty of one hundred and fifty thousand euros (€150,000) on Dennis Muscat. The Authority has decided to direct Dennis Muscat in terms of Article 15 of the ISA and Article 16 of the MFSA Act to cease the activity of introducing investment services clients to locally licensed investment firms for a period of ten (10) years.
PUBLICATION
This notice is being published as part of the Authority’s standard enforcement policy and in terms of Article 25(1) of the ISA and Article 16(8) Malta Financial Services Authority Act.
UPDATE ON 15 OCTOBER 2020
The Authority’s decision was appealed before the Financial Services Tribunal within the period established by law.
