The Malta Financial Services Authority (“MFSA”) decided to proceed with imposing an administrative penalty of one hundred and sixty thousand Euro (€160,000) on the Company.
Address:
MC Trustees (Malta) Limited
93, Mill Street
Qormi, QRM 3102
Malta
Business Activity: Retirement Scheme Administrator in terms of the Retirement Pensions Act (Chapter 514 of the Laws of Malta).
BREACHES
The MFSA determined that the Company failed to adhere to its obligations in terms of the following provisions of 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:
[i] failed to act in the best interests of the MCT Malta Private Retirement Scheme (“the Scheme”) and its beneficiaries in terms of Part B 2.3.1 of the Standard Operational Conditions applicable to Retirement Scheme Administrators;
[ii] acted in breach of its fiduciary obligations as a trustee of the Scheme in terms of Articles 21(1) and 21(2)(a) of the Trusts and Trustees Act, as well as Paragraph 6.0 of the Trustees Code of Conduct;
[iii] failed to implement adequate internal control procedures to protect the Scheme members from any financial losses in terms of Part B 2.6.4 (g) and Part B 2.7.1 of the Standard Operational Conditions applicable to Retirement Scheme Administrators;
[iv] failed to ensure that the individual member accounts are adequately liquid at all times as required by Part B 2.7.2 (a) of the Standard Operational Conditions for Retirement Scheme Administrators as well as the Licensing Conditions issued by the MFSA to the Company and the Scheme;
[v] failed to meet its obligations in terms of Article 19 (1)(l) of the Special Funds (Regulation) Act in view that it did not ensure that all instructions and decisions affecting the Scheme were in conformity with the law and the Scheme Particulars; and
[vi] failed to meet its obligations in terms of Part B 1.4.4 of the Pension Rules for Service Providers in view that it 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.
REGULATORY ACTION
On 16 April 2021, the Malta Financial Services Authority decided to impose an administrative penalty of one hundred and sixty thousand Euro (€160,000) on MC Trustees (Malta) Limited.
The Malta Financial Services Authority has taken this decision in terms of the powers granted to it under Article 17(6) of the Special Funds (Regulation) Act; 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 MFSA Act and Article 46(4) of the Retirement Pensions Act.
UPDATE ON 14 MAY 2021
The Authority’s decision was appealed before the Financial Services Tribunal within the period established by law.
UPDATE ON 25 JULY 2023
On 5 July 2023, the Financial Services Tribunal delivered its judgment on the aforementioned appeal and on 25 July 2023, the Authority has appealed the decision of the Financial Services Tribunal in front of the Court of Appeal (Inferior Jurisdiction) in terms of Article 21(14) of the MFSA Act.
UPDATE ON 3 MAY 2024
On 3 April 2024, the Court of Appeal (Inferior Jurisdiction) delivered its judgement by accepting the Authority’s appeal filed on 25 July 2023 and revoking the decision taken by Financial Services Tribunal on 5 July 2023.
