Issue link: https://maltatoday.uberflip.com/i/1309486
maltatoday | SUNDAY • 15 NOVEMBER 2020 15 INVESTMENT companies should inform their customers on how their investment is develop- ing in order to allow them to take educated decisions and query in- vestment brokers on their invest- ments. This was held in Carmelo u Carmen Baldacchino -v- Crystal Finance Investment Limited, de- cided on 11 November 2020 by the Court of Appeal presided by Mr Justice Lawrence Mintoff. Crystal Finance had appealed a decision given by the financial services Arbiter on 28 March 2018. This concerned a complaint lodged by the Baldacchinos. The Arbiter had upheld partially the complaint and the company was ordered to pay the Baldacchinos a sum with regard to a second in- vestment they carried out in a fund called BP211. The facts of this case concern loss the Baldacchino sustained in a 5% Euro Bond BP211 with an under- lying bond of 7% RENA GmbH. This was one of four funds. The Baldacchinos explained that they are an elderly couple and do not understand in investments. They were approached by the compa- ny to invest in a low risk invest- ment, however, it turned out that they lost money and blamed the company for being negligent. The company had recommended that they invest in Rena, because other investments they had made were losing money. They invested in Rena in total €9,160, but they were not informed that this second in- vestment was also not doing well. They only managed to retrieve €400. Their biggest loss was when they invested €30,075 and again they were not informed that the fund was doing badly. The company contested this claim and held that the Arbiter was not empowered by law to hear the case in terms of Article 17 of the Terms of Business Agreements. The Company held that the loss took place because of the interven- tion of third parties. The company held that they could not give guar- antees would be successful. The Arbiter in his decision dealt with the competence plea. Arti- cle 17 of the Terms of Business Agreement held that there if there were any disputes then the Mal- tese Courts had jurisdiction. The Company had also informed the Baldacchinos that they could lodge a complaint to the Arbiter. In Ed- gar Cuschieri -v- Perit FGustavo R Vincenti decided on 13 Febru- ary 1950, when a contract would not be providing for a particular event the Courts should interpret the contract primarily on how the parties to the contract intended it. The Company explained that the Baldacchinos had signed a num- ber of documents, which showed that they were educated enough to understand the terms of business. The Arbiter pointed out that these documents were long and techni- cal, and it was not read to them. It was handed to them simply to sign. It is the service provider's obliga- tion to explain the agreements to their clients. In Raymond Camill- eri et -v- Touring Medieterraneo Ltd decided on 6 October 2010, the principle pacta sunt servanda is based on the fact that the parties would negotiate the conditions of the agreement freely. On the merits of the case the complaint concerned two invest- ments that the Baldacchino carried out through the appellant compa- ny. €8,800 in RENA and €11,120 in BP211. They were convinced to invest in RENA because they were informed that their previous investment was not doing well but were not advised they RENA was also not doing well. The Baldac- chinos' greatest loss was in BP211, since the investment was done in one fund, when were meant to spread in different portfolios. On the other hand, Crystal Fi- nance blamed the Baldacchinos in that it was they who insisted to make this additional investment. The Arbiter then did a technical analysis of the investments and found that the company did dis- cuss options for the first invest- ment, but the Baldacchinos chose BP211 to invest in. This did not take place when they invested for a second time. The forms filled in were identical to the first invest- ment, showing this was a mere for- mality. And therefore, the Arbiter decided that the company should refund of €5,798.42 invested in the second investment. Crystal Finance appealed on the ground that the Arbiter lacked ju- risdiction and that his decision was erroneous. The Court of Appeal on the first ground of appeal, held that the Ar- biter did have jurisdiction because the agreements signed by the Par- ties did not give exclusive jurisdic- tion to the Courts. As to the second ground of ap- peal, the Court of Appeal did not agree with the Arbiter that the sec- ond investment should have never been carried out, because the re- sponsibility of the loss should not be bound by the company. Mat- thew Magro of Crystal Finance testified where he explained the Baldacchinos before 2008 invest- ed in UBS funds and he used to explain where did not understand the implications and when they complained that the interest was not as high as they were used to, he suggested to invest in binds. They were interested in Euro High Yield bonds with a rate of 6.25% inter- est. A colleague had rung them up in 2016 to inform them that the companies they had invested in not doing well. They had several investments. The Court of Appeal held it did not doubt the Client Review Forms that were filled in 2014. The Court held that if an investment does not succeed, then the investment company is not automatically to blame. However, the investment of BP 211 was doing badly from 2015 and could not make a profit. The company argued that it had no legal obligation to follow the investment. The investor may if he wishes ask the service provider for information. The Court held that without the necessary informa- tion, an investor is unable to judge whether he should ask for more in- formation. Therefore, the service provider should follow the invest- ments to safeguard against losses. The Court then moved to reject the appeal. LAW CLASSIFIEDS CLASSIFIEDS INFO @MEDIATODAY.COM.MT Investment companies should update their customers to allow them to query HOLIDAY ACCOMMODATION MARSALFORN, Gozo - holiday apart- ments for short or long lets with magnifi- cent sea-views. Call 21556021, 27556021, 79426883 PROPERTY TO LET XLENDI - catering premises in prime site to let. Can be used for other commer- cial purposes. 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Three bedrooms; dou- ble glazed windows; inverter air condition- ers including solar water heater. Being sold furnished. Own airspace with possibility of further development. Contact owner on 99912005/99450639. SERVICES NEWSPAPER adverts - Book & pay on-line on www.perfecta.com.mt - no extra charges. Call on 21322452 SITUATIONS VACANT ADMINISTRATIVE SECRETARY - RVC is looking for an Administrative secretary. Responsibilities: reporting primarily to the Company Director, has excellent skills in office management, able to work on their own initiative, good team player, main- tain executive's agenda, assisting in plan- ning appointments, board meetings, handle correspondence, monitor office supplies, sending quotations on time, following up job confirmation, payments, keeping track invoicing, preparing weekly timesheets for the employees, property manage- ment reports (reports for equipment and staff between the internal companies). Preference will be given to candidates with a minimum level 5 in Office Management and secretarial practice. Candidates are to send their CV to info@rvcltd.com.mt CLEANER - we require a cleaner on a full-time basis. Duties to include cleaning of plates, floors, toilets. Must be available on weekends and to work flexible hours. Minimum of 3 years' experience and good communication skills is a must. Contact us on info@coxswainscabin.com JUNIOR OFFICE CLERK - a vacancy has arisen at a shipping company located in Marsa. Following requirements are O Level standard passes, computer literate – Microsoft office, knowledge of Maltese and English languages. Ability to communicate and work on own initiative / 'hands-on' approach. Prospective candidates can send cv on email: David.debono@valfreight.com. mt or vvella@valfreightmalta.com SALES ASSISTANT - 'Fargola' Mini Market and 'BG' shop Malta are seeking the employ- ment of a Sales Assistant — to work in their mini markets. The ideal candidate should be in possession of the appropriate quali- fications or equivalent, in lieu a minimum of 3 years' experience in a similar post. The ideal candidate shall have command knowl- edge of both written and speaking level of the English and Serbian or Bulgarian lan- guages. The Sales Assistant will amongst others be assisting in on a day-to-day basis tasks, having close contact with out valued customers and assist the Manager. Sales Assistant shall interact with native Serbian or Bulgarian speakers to assist them as our customers by providing an excellent and efficient service to them. Remuneration package starts at €10,200 gross per annum. Email your CV to bgshopmalta@gmail.com SIGNAL 8 - Signal 8 Security Malta Ltd. requires filling positions as Customer Care Clerks, Security Guards, security for places of entertainment and cleaners. Applicants should be customer care orientated, smart and flexible for shift work. Email your CV to hr@signal8securitymalta.com.mt SPA THERAPIST - Required for a boutique hotel. Full time hours including weekends and public holidays. Must be flexible with hours. At least 5 years' experience in a sim- ilar post. Must be specialised in colonic irrigation. For more info please call Village Concept on 99885352. WAITER/WAITRESS - We require a wait- er/waitress to work full time including Friday, Saturday & Sunday evenings and public holidays. Minimum wage. Kindly contact Asian Palace, St Julians on 27811888 or email: info@asianpalacemalta.com WAITER/WAITRESS - We require a wait- er/waitress to work part time on Friday, Saturday & Sunday evenings. Kindly con- tact Asian Palace, St Julians on 27811888 or email: info@asianpalacemalta.com WANTED COLLECTIBLE items such panini albums and loose stickers, old postcards and post- ed envelopes, medals, militaria, coins and paper money, books, toys, stamps, badges, paintings, gold & silver items etc. Call on 21310238, 99246632. LAW REPORT MALCOLM MIFSUD Mifsud & Mifsud Advocates