Issue link: https://maltatoday.uberflip.com/i/741600
maltatoday, SUNDAY, 23 OCTOBER 2016 13 JURGEN BALZAN FORMER finance minister Tonio Fenech has accused the Swedish Pensions Agency of attempting to prejudice the position of the Mal- ta-based fund he is a director of, which is reportedly unable to pay back €247 million in savings be- cause of 'major investment fraud' in the eyes of the SPA and public opinion. In a letter sent to the Swedish minister for financial markets and consumer affairs, Fenech reas- sured that all investments in the Malta-based pension fund – which last week was reported to the po- lice on an allegation of investment fraud – were "intact" but warned that "unrealistic" time-frames for the redemption of funds would work against the interest of pen- sion savers. Last week, MaltaToday reported that Falcon Funds was facing a criminal investigation in Sweden after the pensions authority told the police the fund could be un- able to pay back Swedish savers their monies. Falcon Funds denies wrongdoing and says it will return the money as soon as the assets it invested it can be sold. In the email sent to Per Bolund, who also serves as Swedish deputy finance minister, Fenech however insisted that "the investments and monies pertaining to three sub- funds in the Swedish Pension Sys- tem are intact, in the custody of Bank of Valletta, a reputable bank in Malta and are being remitted to the Swedish Pensions Agency as the assets are being sold and set- tlements are made." On his part, Bolund told Malta- Today in a comment that he was "very concerned" with the Fal- con Funds saga, adding that "this shows that we need a better con- sumer protection for Swedish pen- sion savers. It is also important to stress that all financial service au- thorities in all EU member states are expected to follow the EU har- monized regulation and also per- form the necessary supervision." The Swedish government is mulling the introduction of new legislation and could ask agencies supervising the pension system to tighten the rules. Bolund added that while it is following the ongoing legal pro- cedures involving Falcon Funds, "the Swedish pensions agency is working towards regaining all the money for the pen- sion savers that have been affected." In Sweden, savers may opt to invest a portion of their state pension in private funds that have entered an agreement with the Swedish Pen- sion Agency, like Falcon Funds. The SPA claims Falcon Funds, which is licensed by the MFSA, is un- able to pay back a to- tal of €247 million (2.4 billion Swedish kroner) to 22,000 investors after it delisted the fund from the Swedish pension platform. The SPA claims Falcon Funds has made question- able investments and also obtained investors through misleading sales tactics. Falcon Funds has so far returned 1.25 billion Swedish kroner, but pension agency spokesman Jimmy Larsson-Hagberg claims the rest may be lost. However, Fenech and the board of Falcon Funds disputed the agen- cy's right to cancel the agreement, insisting that Swedish prosecutors found nothing illegal in the way pension money has been trans- ferred to the firm from other pen- sion funds. In the email, Fenech reiter- ated that once it accepted the SPA's redemption request, investments jad started to be transferred back to the Swedish pension sys- tem. But he lamented that the tight time- frames are con- straining Falcon Funds. "There are ob- vious logistical p r a c t i c a l i t i e s that make it i m p o s s i b l e to wind up a SEK 2.4 billion in two weeks as the Swedish Pension Agency expected," Fenech said, adding that the legal obligations of the Falcon Funds board of directors is to ensure that the trans- fer of funds is done in an orderly manner "to ensure that when assets are sold this is done in the best interest of investors i.e. not to create un- necessary losses." In his email sent on 14 October, Fenech also insisted that allegations of unlawful use of client IDs were found to be baseless by the Swedish prosecutor, and accused the SPA of using media pressure against it. "We have no objection to authori- ties enquiring on the workings and actions of the Fund, and as Direc- tors we will co-operate fully, how- ever the public pronouncement done by the Swedish Pensions Agency sought only to prejudice the position of the Fund in the eyes of the court and public opinion," Fenech wrote. "The Fund went to the Adminis- trative Court to seek remedy, which the court however referred to the Civil Court, and that is where we are today," he added. While noting that the MFSA does not share the SPA's view that the pension fund invested money in ineligible investments, Fenech said the SPA was making wrongful claims "on matters that are super- vised by competent financial au- thorities in Sweden and Malta and not by them. These assertions dam- age not only the reputation of the Fund but also the interests of inves- tors when it comes to dispose of the investments as market offers take advantage of the situation." The SPA has said that while the MFSA has directed Falcon Funds to start paying back the cash, "millions are still missing. This raises a strong suspicion that the events that have transpired are part of a major in- vestment fraud". jbalzan@mediatoday.com.mt JURGEN BALZAN THE players' union has launched an online petition calling for an end to compensation fees for chil- dren who decide to change club. "Children playing football in Malta are treated as financial commodities. A child is a club's property," the Malta Football Play- ers Association (MFPA) petition reads. From the age of 12, players are officially registered with the Malta Football Association and if a player decides to move to another club, nurseries have a right for compen- sation. However, the MFA has not set parameters and some- times clubs have demanded compensation payments running into thousands of euros. The so-called 'nursery compensation fee' which clubs demand starts at some €300 for every season spent at the nursery and many parents are concerned that this is driving children out of the game, especially if the parents or the new club are unable or unwilling to pay the fee. Alternatively, players can de-reg- ister for 18 months and re-apply with a new club but many parents see this as counter-productive as it leads to children being unable to play competi- tive football for months. The petition notes that even if a child is unhappy or is not play- ing regularly, the club is entitled to receive this compensation. "Freedom comes at a price. This is called nursery compensation fee and is paid over and above the annual mem- bership fee and the an- nual kit fee. Let's stop this. Our children are not for sale," the petition reads. Once players reach the age of 12 they become eligible to register on what is known as Form Q, provided that the child has the written permis- sion of at least one of the parents or a legal guardian. At the end of the season when the player becomes ineligible to play in the U/15 competition, the player can register with a club on Form G. If the player decides to play for a new club, the previous club demands the compensation fee. After one year following the end of the season when the player is no longer eligible to play in U/15 competitions, players have the right to register with a new club without paying any compensation. News Fenech tells Swedish minister of 'unrealistic' time frame for repayment of pension funds Players' union calls for end of commodification of children footballers Swedish deputy finance minister Per Bolund told MaltaToday he was 'concerned' about the Falcon Funds saga Tonio Fenech