ALL INVEST COMPANY LIMITED

The Malta Financial Services Authority has announced that, on 6 June 2013, it has suspended the investment services licence of All Invest Co. Ltd. after identifying a series of regulatory breaches. As a result, All Invest cannot accept new business and must begin an orderly transfer of its clients business. The Authority has investigated the manner in which All Invest had sold complex investment products to retail investors. The Authority has determined that, in a number of instances, All Invest failed to act in the best interest of investors as required of all firms which provide investment services. The Authority’s decision was based on a detailed review of a number of investor files held at All Invest, as well as information provided by the firm itself. The following is a summary of the Authority’s findings and conclusions: The provision of investment advice: the Authority concluded that in certain instances, investors received unsuitable advice. In such instances, All Invest also failed to establish the investor’s risk attitude and investment objective, which were in conflict with those of the financial product(s) sold. There were also instances where All Invest failed to establish if the investors possessed the relevant knowledge and experience to understand the risks involved in relation to the product(s) sold. These criteria were meant to be established at the onset of investment advice and by means of a Suitability Test. The provision of non-advisory services: the Authority concluded that in certain instances, All Invest should not have promoted and sold complex investment products and a proper Appropriateness Test was not compiled. As a result, the firm failed to establish if such non-advisory clients possessed the relevant knowledge and experience to understand the risks involved in relation to the product(s) sold. Record keeping: All Invest was required to maintain sufficient records to be able to demonstrate compliance with the regulations and with the conditions of its investment services licence at all times. In a number of instances, All Invest failed to obtain the required information at the time when the transaction took place. This notice is being published in terms of the powers vested in the Authority under the provisions of the Malta Financial Services Authority Act.