Court Ruling Against Calamatta Cuschieri Investment Services
The Maltese Arbiter for Financial Services has ruled against Calamatta Cuschieri Investment Services Ltd (www.cc.com.mt), operating under the trading name Calamatta Cuschieri, for breaching investment regulations. The decision outlined that an investor suffered a financial loss exceeding €100,000 due to investments recommended by the company.
Calamatta Cuschieri (LinkedIn), regulated by the Malta Financial Services Authority (MFSA), is part of CC Finance Group PLC and ranks among Malta’s leading financial services firms. Notably, it is also a distributor of UBS funds in the Maltese market.
Directors and Company Background
Key individuals behind Calamatta Cuschieri include:
-
Alan Cuschieri (Director) (LinkedIn)
-
Nicholas Calamatta (Director) (LinkedIn)
-
Michael Galea (Director) (LinkedIn)
-
Kari Pisani (Company Secretary), who previously held a position at Sparkasse Bank Malta, a bank fined heavily over anti-money laundering failures.
Breach of Regulatory Duties
According to the Arbiter’s findings, the firm recommended high-risk, non-investment-grade bonds without properly assessing the client’s risk appetite or financial goals—requirements mandated by investment service laws. These obligations require a provider to clearly document a client’s risk tolerance and investment objectives.
The ruling emphasized that Calamatta Cuschieri failed to demonstrate that it had fulfilled these duties. The core issue revolved around the recommendation of 6.5% Lecta bonds, issued by a Spanish paper company that later defaulted. The investor ultimately lost over €100,000.
This bond was also suggested to other clients, either directly or through the company’s managed fund structure, CCFunds. It remains unclear whether additional clients have taken legal action for similar losses.
Malta’s Growing Compliance Concerns
In recent years, Malta has drawn attention for questionable regulatory conduct. Local media reports have revealed that MFSA allegedly funds certain media outlets through direct orders.
At the same time, Kenneth Farrugia (Director of FIAU) and his deputy Alfred Zammit have faced strong criticism for inaction on serious cases involving politically exposed Maltese individuals. These failings contributed to Malta being greylisted by the Financial Action Task Force (FATF).
Calamatta Cuschieri itself was previously penalized for failing to verify the source of clients’ funds and assets.
Controversies Surrounding MFSA Leadership
The now-former MFSA CEO Joseph Cuschieri resigned after it emerged that he traveled to Las Vegas with Yorgen Fenech, the alleged mastermind behind the assassination of Maltese journalist Daphne Caruana Galizia. They were joined on this trip by Edwina Licari, then General Counsel of the MFSA. (Source)
Other MFSA officials involved in supervising Calamatta Cuschieri—Michelle Mizzi Buontempo and Christopher Buttigieg—have never taken disciplinary action against the firm, despite years of oversight. Their lack of accountability has drawn criticism, especially in light of recent revelations about secret settlements reached with certain regulated entities.
The case of Calamatta Cuschieri is now seen as emblematic of broader regulatory failures in Malta’s financial sector.
Source and Related Information
The Scam-Or Project, an independent investigative outlet, has been actively covering regulatory failures in Malta’s financial services industry.