[WATCH] MFSA has ‘great powers’ it isn’t using – Finco stockbroker

Paul Bonello, the stockbroker who provided the financial evidence on the mismanagement of the La Valette property fund, said MFSA never informed any investors or members of the public of the real risk the property fund was, even though the investors were told it was low-risk.

“The statute itself obliges the Authority to guide the public and keep it informed,” Bonello said.

He added that while MFSA’s regulations are “state of the art” on paper, the Authority’s problem was the administration that lacked the teeth to make use of its tools.

“MFSA is delivering the wrong message: when it receives a complaint it says it’s going to make declaration – which takes months and years to be completed – but at the same time warns they are not a sort of ‘court’.

“In reality it has great power which it could be using better,” Bonello said.

Bonello said there is “considerable room for progress” when it comes for MFSA to direct investors.