On 25 September 2023, the Malta Financial Services Authority (“Authority” and/or “MFSA”) decided to suspend with immediate effect the financial institution licence of MTACC Ltd. and appoint a Competent Person in terms of the powers conferred to it by the Financial Institutions Act (“Act”).

 Address:

MTACC Ltd
39, Centre Point
Triq Francis Zammit
St Julians
Malta

Business Activity: Financial Institution authorised under the Financial Institutions Act

BREACHES

The MFSA determined that the Institution has acted in breach of:

1. Article 5 (1) (b) and (c) of the Act due to its weak governance arrangements;
2. Article 14 (1) and 17 B of the Act for the failure to submit its Audited Financial Statements and the Auditor’s Management letter for the financial year ending 31 December 2021 for the financial year ending 31 December 2022;
3. Article 10 B (1) of the Act on the lack of safeguarding of its clients’ funds;
4. Article 7B (2) of the Act on the breach of a Directive issued by the Authority;
5. Article 16 (1)(b) of the MFSA Act due to the lack of cooperation with the Authority;
6. Article 24 A (b) of the Act due to the misleading information provided to the Authority.

REGULATORY ACTION

By virtue of the powers given to the MFSA under Article 6(1) (d) (i) and (j) of the Act, the Authority has decided, on 25 September 2023 to suspend the financial institution licence of MTACC. The suspension shall remain in place until such time as MTACC:

1. remediates the Institution’s weak governance and internal controls; and
2. all dues to clients have been settled in full.

Furthermore, in terms of Article 17 (1) (a) (c) and (d) of the Act, the MFSA has decided to appoint PwC Advisory Services Malta Limited to occupy the role of a Competent Person. The Competent Person shall have the power to:

• take charge of the assets of the financial institution or any portion of them for the purpose of safeguarding the interests of the integrity of the financial system in Malta;
• take over the business of the financial institution, either to carry on that business, or to carry out such other function or functions in respect of such business or part thereof, as the competent authority may direct.

The term of the appointment of the Competent Person shall commence on the 25 September 2023 and shall remain in force for a period of six (6) months, unless the Authority and the Competent Person agree to extend such term. PwC Advisory Services Malta Limited can be contacted on: [email protected] and/or 25640020.

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 10 NOVEMBER 2023

The Authority’s decision was not appealed before the Financial Services Tribunal within the period established by law.

UPDATE ON 31 MAY 2024

The Authority has extended the term of the appointment of the Competent Person, which shall commence on the 30 May 2024 and shall remain in force for a period of six (6) months.

UPDATE ON 2 October 2024

The Authority has extended the term of the appointment of the Competent Person, which shall commence on the 2 October 2024 and shall remain in force for a period of six (6) months.