BANK OF VALLETTA PLC

On 28 December 2011, the MFSA imposed an administrative penalty of €175,174 on Bank of Valetta plc in terms of article 16A of the Investment Services Act. Bank of Valletta plc was found to be in breach of a number of provisions of the Investment Services Guidelines applicable for transactions effected prior to 1 November 2007 as well as the Investment Services Rules applicable for transactions effected after the 1 November 2007 as follows: [I] failure to act with the level of care and diligence required of licence holders in order to ensure that the investment advice or portfolio management service provided is appropriate and suitable given the customer’s particular circumstances; [II] failure to take all reasonable steps to ensure that a client or potential client has sufficient information which he is able to understand to enable him to take informed investment decisions; [III] failure to obtain and record the personal and financial information necessary to make appropriate recommendations or investment decisions; and [IV] failure to maintain sufficient records. The said breaches relate to transactions in respect of certain securities sold to investors, including perpetuals and other preferred securities issued by Lehman Bros, Royal Bank of Scotland, HBOS and others. This notice is being published in terms of the powers vested in the MFSA under the Malta Financial Services Authority Act. Bank of Valletta has a right to appeal from this decision up to the 26 January 2012.