Swedish investigators have closed down a criminal investigation into a pension scheme operated by Falcon Funds.

The Stockholm police have said they freed Tonio Fenech, Joseph Xuereb and Ian Zammit from any suspected offences. Former Minister was one of the directors of the failed fund.

The fund used to offer Swedish pensioners based on the country's premium platform. It was later kicked out by the pension's authority in Sweden following rising suspicions in the assets and illegal transfers of money. Later, the MFSA prohibited the funds from accepting any new appointments in funds or entities for a period of two years.

The Swedish investigators still have to investigate some 15 other suspects. The Swedish pension authorities are still keeping their door open for legal proceedings against the Maltese. This same authority had claimed that Falcon funds was unable to pay back some €245 million in savings due to a major investment fraud. MFSA had in fact remarked on the failed act fairly or with integrity.

The MFSA, which has been investigating the conduct of the Scheme since December 2015, said at the time: "Following careful consideration of the facts available to the Authority, on 9 and 22 September 2016, the MFSA issued two directives to the Scheme under the powers granted to the Authority in Article 15 of the Investment Services Act."

In order to ensure the proper protection of the unit-holders and other creditors of the Scheme, the MFSA appointed KPMG Malta as a competent person in terms of Article 15A of the Investment Services Act with effect from 11 January 2017 to inter alia: [a] to take charge of the assets of the Scheme for the purpose of safeguarding the interests of the investors in the Sub-Funds of the Scheme, [b] assume control of the business of the Scheme, [c] periodically report to the MFSA and other relevant persons on the activities undertaken, and [d] carry out such other functions as the MFSA may direct.

This measure, the MFSA said, was being taken with specific reference to the Scheme following an on-going investigation and the termination of the Investment Management Agreement between the Scheme and Temple Asset Management Ltd, the former Investment Manager of the Scheme. These measures will remain in place until such time as the MFSA directs otherwise." 

At the time, Falcon Funds had already returned at least €67 million in savings, and wants to carry out the total divestment of the funds in an orderly fashion to safeguard the value of the pension savers' investments.