New members for MFSA board of governors

New governors will take their place today on the board of the Malta Financial Services Authority, as a clean sweep takes place on the MFSA’s highest authority.

Central Bank governor Josef Bonnici, former Labour MP Joseph Brincat, economist John Consiglio, banker and former FIAU deputy chairman Herbert Zammit Laferla, former Air Malta group head Frans Camilleri, and university lecturer Lauren Ellul have been picked to sit on the MFSA board.

The former members of the board were Albert Attard, Louise Ellul Cachia Caruana, Anton Felice, Cynthia Scerri Debono and Frank Xerri de Caro.

Bonnici retains his position on the MFSA board.

MFSA chairman Joe Bannister’s term was extended by five years after his contract expired in December 2013.

The decision was taken around the same time that Prof. Bannister was asked to mediate between the government and the Opposition on the controversial Individual Investor Programme.

Bannister, an architect of Malta’s modern financial system, was the target of severe criticism over the MFSA’s handling of the La Vallette Property Fund investors’ complaints.

Recently, the MFSA defended itself against accusations from investor-clients of the shuttered Maltese Cross Financial Services, blaming external auditors PricewaterhouseCoopers for giving the all-clear on Maltese Cross’s financial for six years running.

The MFSA has been accused of failing to conduct on-site inspections at Maltese Cross, which lost some €6 million in clients’ investments.