Man fined €150,000 over unlicensed investment services, gets 10-year ban

A man has been fined €150,000 and banned for 10 years from introducing clients to licensed investment firms.

The Malta Financial Services said Dennis Muscat, not a licensed practitioner as far as MaltaToday is informed, had performed unlicensed investment services by providing investment services without a licence on a regular and habitual basis.

Back in June 2020, the MFSA had already advised that Muscat was not licensed or authorised to provide any financial services in Malta.

“Financial services may include the provision of investment advice, portfolio management, reception or transmission of orders and acting as nominee. The provision of these services as well as other financial services require prior authorisation from the MFSA.

“Certain legal arrangements, such as having in place certain powers of attorney given to individuals to undertake these services on a wide scale, are considered to be a means to attempt to circumvent the statutory requirements applicable to persons or entities which would require prior authorisation from the MFSA,” the MFSA had said of Muscat.

The MFSA had directed Muscat to cease the provision of any financial services which required prior authorisation from the MFSA, as well as refrain from destroying any documentation, related to the introductory and other financial services he had provided to third parties.