Greens demand resignation of Bank of Valletta chairman
AD – ‘Finance minister should assume political responsibility since BOV chairman is appointed by the government.’
Alternattiva Demokratika has called for the resignation of the government-appointed chairman of the Bank of Valletta, after the bank was fined over €200,000 in a decision by the regulator on the mis-sale of the La Valette peroprty fund to retail clients.
"Following the latest ruling of the Malta Financial Services Authority, BOV chairman Roderick Chalmers and other officials directly involved in the matter should assume responsibility and resign," the party said in a statement.
AD also that finance minister Tonio Fenech should assume political responsibility, given government's shareholding with the bank as well as due to the fact the BOV chairman is appointed by the government.
"People were misguided by BOV. Minister Tonio Fenech should have seen the writing on the wall and should assume political responsibility for this. AD demands full release of government's correspondence on the matter," AD said.
The Malta Financial and Services Authority fined BOV the maximum fine available under the applicable legislation of €203,150 for breaching license conditions when selling units in the fund to its clients.
The bank will now undergo a review by an independent professional services firm, engaged by the MFSA at the expense of the bank, to prepare a list of ineligible investors to whom the bank should offer further compensation, tagged at €1 per unit.
In June 2011, BOV offered investors a conditional compensation offer of 75c per share after the La Valette fund was found to have lost some €50 million in value, which prompted a series of judicial protests against the bank in the name of the property fund investors by Bonello's accusations were later confirmed in the investigation by the financial services authority that fined BOV and its investment arm Valletta Fund Management €350,000 over a breach of investment services rules.
The MFSA then issued a reprimand to former La Valette property fund director John C. Ripard, for having sold his holding in the fund on the basis of insider information.