Nemea plc (“Nemea”), the principal shareholder of Nemea Bank plc (the “Bank”), refutes a contention made by the Malta Financial Services Authority that is is affected by “regulatory shortcomings”.
In a statement replying to the MFSA declaration on 20 January, Nemea plc said it disagrees in the most absolute and categorical manner with the appointment of PricewaterhouseCoopers Malta as competent person by the MFSA in terms of Article 29 of the Banking Act and Article 15A of the Investment Services Act.
Indeed, Nemea and others have appealed the MFSA’s decisions to appoint a competent person and to impose a deposit withdrawal limit, amongst others.
On 16 January 2017, the Financial Services Tribunal in a preliminary decision found in favour of Nemea and other appellants (the “Appellants”), dismissing the Authority’s preliminary plea that the Appellants lacked the locus standi to bring this appeal. Accordingly, this appeal is due to continue being heard according to law by the Financial Services Tribunal established under the Malta Financial Services Authority Act.
Nemea categorically refutes the MFSA’s contention that the Bank is affected by regulatory shortcomings.
Furthermore, and entirely without prejudice to the foregoing, Nemea also contests the Authority’s statement that to date no tangible progress has been registered by the Bank’s shareholders to fulfill the Bank’s regulatory requirements. The Bank’s shareholders wish to put on record that they have always collaborated in utmost good faith with the MFSA, that the Bank is meeting and has met, at all times, its capital and other regulatory requirements to a material extent, and that the Bank is fully viable and able to resume its normal profitable operations.
Nemea, therefore, said it strongly contested the proposal by the MFSA to the ECB to withdraw the Bank’s licence as it considers this proposal to be without any legal or factual basis. Should any regulatory action as has been proposed by the MFSA be taken against the Bank, such action will be vigorously and robustly challenged before the appropriate judicial fora at both the Maltese and EU levels. Nemea is committed to restoring the Bank’s normal operations in the shortest time possible in the interest of depositors and all stakeholders.