Issue link: https://maltatoday.uberflip.com/i/844299
maltatoday, SUNDAY, 2 JULY 2017 6 News TIM DIACONO THE financial services arbiter looks set to deliver a decision re- garding the case of the investors of a Bank of Valletta property fund who had lost millions in savings due to alleged misselling. Finco Treasury Management di- rector Paul Bonello, who is repre- senting the 500 or so aggrieved in- vestors and has been pursuing the case since 2011, told MaltaToday that a decision looks "imminent". "We have been awaiting a deci- sion from week to week, but now I really believe a decision is immi- nent," he said. "I suspect that the arbiter had delayed his decision until after the election, because otherwise it could have been per- ceived as distorted." The complaint relates to the long-running dispute investors have had with BOV after they had lost their savings when they had purchased shares in the suppos- edly low-risk La Valette property fund for up to €1.1650 per share. The Malta Financial Services Authority fined BOV six times be- tween 2011 and 2012 for missel- ling the fund to inexperienced in- vestors and for breaching its own investment restrictions – particu- larly when it invested €17 million in the now-defunct Belgravia Eu- ropean Property Fund. Around 2,300 investors accepted the bank's subsequent compensa- tion of 75c per share on condition that that they waive legal action against the bank should the MFSA find it had breached property fund conditions. Others, represented by Finco, demanded that BOV re- pay them based on the value of the shares at the time of investment and were indeed eventually com- pensated in full. However, BOV ignored the MFSA's subsequent demand to bring compensation up in full for the other 2,300 who had accepted its original offer. In the run-up to the 2013 elec- tion, the then-Labour Opposition pledged that a PL government would use its power to elect BOV's chairman to ensure that justice is done to the investors. However, its choice of chairman, John Cassar White – who has since resigned – refused to budge from his predecessor's stance, prompting Bonello to accuse him of changing his pre-electoral as- sessment of the case "faster than a chameleon changes his colours". Yet the investors' claims found a fresh opening when the office of the financial services arbiter was set up last year with the power to mediate, investigate and adjudi- cate complaints by aggrieved in- vestors. Finco filed its complaints on be- half of some 500 of the 2,300 inves- tors in July 2016 and finalized the submission of evidence in April. Bonello told MaltaToday that most of the investors chose not to pursue the case further, because they didn't have the courage or the interest to do so or because they weren't convinced enough that the arbiter would rule in their favour. However, he said he is optimistic that justice will prevail and pledged to call a press conference when the decision is made, regardless of the outcome. Financial services arbiter Reno Borg – a former PL candidate and BOV chairman and Labour's long- standing representative on the Broadcasting Authority – refused to speak to MaltaToday about the case or give an indication as to when it will be finalised. tdiacono@mediatoday.com.mt Decision on La Valette property fund 'imminent' HARD WORK IS REWARDING. IS YOUR CREDIT CARD? Make your business travel go further with the HSBC Business Credit Card. It's free for the first year, and comes with free travel insurance and reward points with every purchase. Call 2380 8000 or visit www.business.hsbc.com.mt/businesscards Approved and issued by HSBC Bank Malta p.l.c., 116 Archbishop Street, Valletta VLT 1444 which is regulated by the Malta Financial Services Authority. Terms and Conditions apply. A fee free offer for the first year applies for applications received by end of September 2017. Refer to our website for the Purchase Protection Policy, Travel Insurance Policy and the HSBC Business Cards Rewards Scheme. Finco director Paul Bonello says he expects a decision imminently by the financial services arbiter on some 500 aggrieved investors The complaint relates to the long-running dispute investors have had with BOV after they had lost their savings when they had purchased shares in the supposedly low- risk La Valette property fund Paul Bonello: optimistic that justice will prevail