Confiance Malta was authorised to act as trustee or co-trustee and provide other fiduciary services including acting as an administrator of private foundations.
It has been ordered by the MFSA to commence “with immediate effect” the transfer of its business “to another person authorised to provide trust and fiduciary services”, the regulator said in a statement.
“In the exercise of its supervisory work, the MFSA has found Confiance Malta Limited to have fallen short of the standards expected of a trustee under the Trusts and Trustees Act and, in the interest of its clients, has decided to issue these Directives,” it said.
The firm has also been directed to report regularly to the MFSA on the progress being made on the transfer.
Furthermore, Confiance Malta Limited was “directed to ensure that the safety and the integrity of its client files is preserved.”
The watchdog cited the terms of article 48 of the Trusts and Trustees Act (namely, ‘Accessibility of deeds of trust’) as the basis for its action, but the statement did not offer further details with regards to the underlying reasons informing the decision.
The provision by the MFSA can be appealed before Malta’s Financial Services Tribunal within 30 days from the date of notification.
International Adviser has contacted both the MFSA and Confiance Malta Limited for comment.
