International pensions company Momentum has been told to pay compensation by Malta's Arbiter for Financial Services for its part in losses incurred by clients of the now folded Continental Wealth Management (CWM).
MAFS has concluded that Momentum Pensions Malta, as the trustee and retirement scheme administrator of the CWM schemes, was "partly responsible" for the the losses of clients of CWM - which closed its doors in 2017 - publishing a document that outlined the grievances of the 55 complainants and the rebuttals from Momentum.
The Arbiter rejected eight of the individual cases where members were advised by CWM and upheld a further 46, with a partial liability imposed on Momentum.
Momentum told International Investment that "subject to further advice" it will be exercising its right to appeal and that it "looks forward to the results of a full legal analysis of the issue in the appeal courts."
If it fails in its appeal it must compensate those that lost money. The full financial implications of the ruling are not yet clear.
The spokesperson for Momentum said that it has worked with customers affected by the collapse of Continental Wealth Management in 2017 and has "supported them where it can".
"Momentum Pensions maintains the highest standards in delivering its responsibilities as a trustee and retirement scheme administrator," the spokesperson added.
"As the trustee and retirement scheme administrator, we did not provide investment advice and always ensured that scheme investments were executed in accordance with Malta regulatory requirements."