The Malta Financial Services Authority (MFSA) has cancelled the investment services licence of MPM Capital Investments.
Additionally, the MFSA has appointed an inspector to assist the watchdog with its investigation and report on the affairs of MPM.
MPM Capital Investments provided investment and wealth management solutions in Malta.
International Adviser attempted to contact the firm but it has shut down its online presence and its telephone line is not working.
Breaches
The MFSA said that it found several issues at the firm, including:
- MPM carried out, “on a regular and habitual basis”, money remittance without the required licence;
- The company provided the MFSA with “false, inaccurate and misleading information”; and
- MPM failed, as a licence holder, to “act and cooperate with the MFSA in an open and honest manner”.
Regulatory action
On 28 August 2020, the MFSA cancelled MPM’s investment services licence and imposed the following directives on the company with immediate effect:
- Refrain from onboarding new investment services clients and accepting new business;
- Undertake the transfer of the company’s investment services business and the orderly transfer of the remaining clients’ investment holdings;
- Maintain proper safeguards of all records relating to MPM’s operations, including its investment services activities; and,
- Cooperate fully with the inspector appointed by the MFSA.
Inspection
The appointed inspector will assist with the transfer of MPM’s investment services business, as well as the transfer of the clients’ investment holdings and review the firm’s resolution programme.
The MFSA’s decision to cancel MPM’s licence can be appealed before the Financial Services Tribunal.
