The Malta Financial Services Authority (“MFSA”) decided to proceed with imposing an administrative penalty of three hundred and ten thousand Euro (€310,000) on the Company.

Address:

Integrated-Capabilities (Malta) Limited
4/1 Bohemia Business Hub
150 Independence Avenue
Mosta MST 9024
Malta

Business Activity: Licensed to act as Retirement Scheme Administrator in terms of the Retirement Pensions Act, Chapter 514 of the Laws of Malta and authorised to act as Trustee and to provide other fiduciary services in terms of the Trusts and Trustees Act, Chapter 331 of the Laws of Malta, as well as to act as administrator of private foundations pursuant to the provisions of the Trusts and Trustees Act.

BREACHES

The MFSA determined that the Company failed to adhere to its obligations in terms of the following provisions of Retirement Pensions Act, the Rules and Regulations issued thereunder, the Trusts and Trustees Act and the Trustees Code of Conduct:

[i] Part B.3.2.1 (ii) and (iii) and Part B.3.1.3 of the Pension Rules for Personal Retirement Schemes for failing to comply with certain investment restrictions to ensure that accumulations of risks in the retirement scheme’s portfolio are avoided and payments of retirement benefits can be met;

[ii] Part B.4.1.2 of the Pension Rules for Personal Retirement Schemes and Part B4.3.13 of the Pension Rules for Service Providers for failing to openly and promptly inform the MFSA of relevant information;

[iii] Part B9.3(d) of the Pension Rules for Personal Retirement Schemes for failing to give due consideration to the risk profile of Scheme members;

[iv] Part B.4.7.1, Part B.4.7.3 and Part B1.3.3(i) of the Pension Rules for Service Providers for failing to accept responsibility for the Scheme’s assets in its possession or control and ensure that the title to these assets are evidenced by documentation and are properly recorded and maintained to safeguard the interests of Members and Beneficiaries;

[v] Part B4.1.7 of the Pension Rules for Service Providers for failing to ensure compliance with regulatory conditions and be effectively prepared to manage, reduce and mitigate the risks to which it is exposed;

[vi] Part B.3.1.1 and B.3.1.2 of the Pension Rules for Personal Retirement Schemes and Part B 1.3.3 (s) of the Pension Rules for Service Providers for failing to ensure that the Retirement Scheme’s assets are invested in a prudent manner, in the best interest of Members and Beneficiaries, and in compliance with any applicable investment restrictions;

[vii] Article 5(1) of the Retirement Pensions (Control of Assets) Regulations for failing to ensure that assets are clearly identified as property attributable to the Scheme such that members would be able to enjoy a right of ownership in such assets;

[viii] Article 21(1) of the Trusts and Trustees Act and Paragraph 6.0 of the Trustees Code of Conduct for acting in breach of its fiduciary obligations as Trustee of the Scheme.

REGULATORY ACTION

On 1 November 2021, the Malta Financial Services Authority decided to impose an administrative penalty of three hundred and ten thousand Euro (€310,000) on Integrated-Capabilities (Malta) Limited.

The Malta Financial Services Authority has taken this decision by virtue of the powers granted to it under the Malta Financial Services Authority Act, Chapter 330 of the Laws of Malta; Article 46 of the Retirement Pensions Act; and Article 51(7) of the Trusts and Trustees Act.

PUBLICATION

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

UPDATE ON 3 DECEMBER 2021

The Authority’s decision was appealed before the Financial Services Tribunal within the period established by law.