The saga of the La Valette Multi Manager Property Fund is well publicised. However, the outcome of the investigation made by the Malta Financial Services Authority is still shrouded in official mystery. Notwithstanding the declaration of the chairman of the authority on 6 February on PBS that the conclusions of the first investigation will be published as soon as the one-month notice period given to Bank of Valletta for comment expired, and that the other two investigations will be published within one “one to two months”, nothing official has been forthcoming although later comments to the press by the same chairman point to obvious conclusions having been justifiably reached.

Bank of Valletta is one of the main equities listed on the Malta Stock Exchange. Bank of Valletta is required to comply with the continuing obligations of the listing authority, which incidentally is also the Malta Financial Services Authority (MFSA). Bank of Valletta, as an issuer of listed securities, is required to issue a company announcement to bring “useful and relevant facts to the attention of the market” that consists of “price sensitive facts which arise in the issuer’s sphere of activity and which are not public knowledge” and thus dispel price speculation in the securities of the company. If there was one circumstance which would require a company announcement, the announcement by Bank of Valletta of the results of the investigation by the MFSA would qualify as the most classic case.

What is Bank of Valletta waiting to make the relative company announcement?

And what is the MFSA waiting to enforce the listing authority continuing obligations in this respect?

Listing authority rules are not meant to be plasticine clay to be moulded as may be convenient to the market players.

Indeed what is the MFSA waiting for to publish the results of the investigation itself as it has committed itself to the public?

Suzanne Borg

Ibraġ