In a stern warning to investors seeking high earnings amid unattractive low interest rates, the financial watchdog has expressed its "disbelief" at how a number of firms have offered portfolios comprising securities with huge underlying risks. "It is with disbelief that [we see] some portfolios offered to retail investors were composed of securities which – even by simply referring to their coupon interest rate – a rough idea of the severity of their underlying risk could have been easily deduced," the Malta Financial Services Authority said. The MFSA sounded this warning in its 2015 annual report which shows that consumer complaints on a wide-ranging array of services amounted to 124, on par with those received in the previous year. The report remarks that in cases related to investment services, the authority's recommendations in favour of the complainants were generally rejected. In such cases, aggrieved investors have to sue the investment companies in court. An analysis of these complaints reveals a general trend, which in the authority's own words is "food for thought". It notes that the ailing worldwide economic situation, which has deflated interest rates for such a...
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