Momentum Pensions Malta Limited (‘Momentum’)
OCTOBER 24, 2023

The Malta Financial Services Authority (‘MFSA’) decided to settle the pending matters with Momentum in relation to failings which occurred during the period from 2013 to 2018 which the Authority found in its investigation on Momentum. The MFSA has considered the detailed representations and evidence submitted by Momentum as well as the goodwill demonstrated by Momentum, and in view of such the Authority agreed to settle the pending matters in relation to the investigation on Momentum subject to a number of terms.

Address:

Momentum Pensions Malta Limited
Ground Floor, Crown Marina
Ta’ Xbiex Seafront
Ta’ Xbiex XBX1027
Malta

Business Activity: Retirement Scheme Administrator in terms of the Retirement Pensions Act (Chapter 514 of the Laws of Malta).

FINDINGS:

The MFSA’s investigation determined that during the period from 2013 to 2018, Momentum failed to adhere to its obligations in terms of the Special Funds (Regulation) Act and the Pension Rules issued thereunder, the Retirement Pensions Act and the Pension Rules issued thereunder, as well as the Trusts and Trustees Act and the Trustees Code of Conduct, namely the MFSA found that Momentum failed, on occasion:

  1. to adhere to certain fiduciary obligations as a trustee of the Scheme;
  2. to take the risk profiles of certain members into consideration when it came to investment decisions;
  3. to act in the best interests of the Scheme and its beneficiaries;
  4. to ensure that the Scheme observes its Investment Policy and Restrictions and on occasion to arrange for the Scheme assets to be invested in a prudent manner and in the best interest of Beneficiaries; and
  5. to safeguard the interest of certain members ensuring that retirement benefits payments can be met closer to retirement date for commencement of retirement benefits.

MEASURES

On 19 October 2023, the MFSA agreed to settle pending matters with Momentum after considering the detailed representations and evidence it provided and the demonstration of goodwill by Momentum, which has strengthened its internal controls and procedures in line with the revised requirements of the Retirement Pensions Act and the Trusts and Trustees Act. By means of a settlement agreement entered into between Momentum and the MFSA the latter imposed an administrative penalty of two hundred thousand Euro (€200,000) on Momentum.

PUBLICATION

This notice is being published in terms of the Authority’s Settlement Policy.