Wood & Company Withdraws Fund License in Malta
The financial outflow from Malta’s investment services sector continues, as yet another firm has chosen to surrender its license. Wood & Company Funds SICAV p.l.c., a subsidiary of the Czech-owned investment firm Wood & Company, has voluntarily relinquished its Maltese license for one of its sub-funds: the Wood & Company Textiles Fund. The sub-fund was managed by Wood Textiles Holding Limited, a Malta-registered company that has since been struck off the corporate register.
Wood & Company, headquartered in Prague and founded in 1991, is a prominent investment player in emerging European markets, with significant equity activity in Warsaw, Bucharest, Hungary, Prague, and Vienna.
The board of directors of the Maltese entity included:
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Frank Chetcuti Dimech
-
Vladimir Jaros
-
Jan Sykora
The firm also oversees a portfolio of real estate funds in the Czech Republic and Slovakia.
Regulatory Climate in Malta: A Declining Trend
This is not an isolated event. The trend of licensed firms withdrawing from Malta has accelerated since the island nation was placed on the Financial Action Task Force (FATF) greylist in June 2021. However, the downward spiral started earlier, in 2018, when a significant number of Malta Financial Services Authority (MFSA) license holders began opting out.
The Scam-Or Project previously published a comprehensive list documenting this exodus.
MFSA’s Mounting Problems
The Malta Financial Services Authority has come under increased scrutiny due to financial mismanagement and bloated operations. According to its audited financial statements for the fiscal year ending 2020, the Maltese government was forced to inject over €46 million to cover losses sustained in 2019 and 2020.
Staffing Surge at MFSA:
|
Year |
Total Employees |
Managerial Positions |
Admin Roles |
|
2013 |
189 |
140 |
49 |
|
2020 |
382 |
340 |
42 |
Despite this massive increase in staffing, no improvements were observed in regulatory efficacy. The MFSA has been harshly criticized for its failed “Blockchain Island” initiative, which saw €3 million in taxpayer funds funneled into marketing an underwhelming campaign that never materialized into tangible growth.
Following Malta’s FATF greylisting, no resignations were recorded among MFSA leadership. The Executive Committee and Board of Governors remained intact, including members:
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Edwina Licari
-
Michelle Mizzi Buontempo
-
Christopher Buttigieg
Note: The Scam-Or Project welcomes additional information or documentation from insiders and the public to further investigate regulatory shortcomings in Malta’s financial sector.