Labour MP calls on bank to act ethically, compensate investors

Shadow finance minister Charles Mangion urged Bank of Valletta to compensate investors in Bank of Valletta's La Valette multi-manager property fund. It is believed that close to €50 million in investments, plus legal interest, were lost.

According to international audit company Mazars, those who invested in the property fund failed to qualify as "experienced investors".

"This conclusion burdens the bank with a new economic and social responsibility, given the important role it holds as an economic entity," Mangion said in a statement.

Mangion said BOV was aware of the report and the persons who required additional compensation are known.

"Even though this is not a legal issue, ethics call for compensation to be awarded to those who invested in this fund based on the advice given to them from bank officials," he said.

Mangion said that the investors had trusted the bank. "We believe that the bank must act on this report's conclusions and identified investors should be informed as soon as possible."

The Labour MP said that this would not leave any repurcussions on the financial situation of the back. "On the other hand, a just action serves to strengthens the public's trust in the bank and other financial entities," Mangion said.

He argued that it was important for the consumer to feel protected and safeguarded. "Commercial interest and profit must not be of detriment to the consumer. Moreover, the structures of the financial regulator must be strengthened in order to safeguard the consumer."

Mangion said that consumers' advisers must act responsibly while the consumer must be informed on any potential investment one decides to make.