A Dec 19, 2025 analysis by The Shift News argues that Malta’s supervision failures during a peak mis-selling era left hundreds of retail investors trapped in the collapse of Australia’s LM Managed Performance Fund—and that even after liquidation proceeds reached Malta in late 2024, distribution to beneficiaries still hasn’t happened.
Key Facts
- The Shift says the product was widely sold in Malta (2008–2013), often framed as “execution-only”, despite allegedly targeting financially unsophisticated retirees (Source: TSN).
- The fund entered compulsory liquidation in Australia in 2013; interest stopped and capital was not repaid at maturity (Sources: TSN, International Advisor).
- The Shift identifies All Invest Co Ltd, MFSP Financial Management Ltd, and Hollingsworth Financial Services Ltd as key MFSA-licensed distributors, with MFSA action coming only after losses materialised.
- Investor redress was structurally limited: Malta’s Investor Compensation Scheme covers 90% up to €20,000 per investor.
- Liquidation proceeds were reportedly remitted to Zenith Finance Ltd (formerly MFSP) as nominee; more than a year later, funds remain undistributed and releases are allegedly demanded from investors.
Short Analysis
From a compliance standpoint, the case is a textbook collision between MiFID suitability/product governance and a sales culture that used “execution-only” labelling to bypass real risk assessment. Notably, MFSA itself said in 2013 it was investigating how LM Investment Management products were sold in Malta, suggesting supervisory awareness while distribution continued.
The post-collapse phase is equally damaging: The Shift describes liquidation proceeds sitting inside a court-supervised nominee structure while investors are asked to sign broad liability waivers—raising consumer-protection and governance red flags, even before questions of civil liability are reached.
Call for Information
Were you sold LM/Zenith products in Malta, worked at a distributor, or have documents on MFSA communications, nominee holdings, or release demands? Share securely via Whistle42.com.
