Woman to sue Global Capital over €10,000 losses

Rabat woman, 50, says she lost €10,000 on complex financial transaction that she should have not been sold in the first place

Carmen Micallef filed a judicial application against Global Capital Financial Management Limited claiming she suffered financial losses due to the company’s negligence.

The Rabat housewife, 50, alleged that a financial transaction carried out by Global Capital on her behalf, related to Lifemark S.A. Secure Income Bond 4 Euro G, had resulted in a loss of €10,000.

Micallef attributed the losses to the company’s negligence which she claimed were in breach of the Civil Code for investment regulations.

Micallef said that based on the Markets in Financial Instruments Directive (MiFID), she would be classified as a ‘retail client’, and yet she was not given copies of the documents Global Capital had asked her to sign, apart from the “Purchase Contract Note”.

The applicant argued that through unfair contract terms, the company had misled her into agreeing to terms which were “unfair, misleading and prohibited”.

Micallef said she was a housewife who assisted her husband, a vegetable seller, and that she had no knowledge of financial instruments, much less of the “complex investment as the Lifemark S.A. Secure Income Bond”.

She said that Global Capital sold her these investments when it was clear that she was not a suitable investor, and that company representative Noeline Mangion had assured her that the investment was secure.

Micallef said that she will be cashing payment cheques she received as a Lifemark ‘trustee’, dated November 2013, January 2014 and April 2014, without prejudice to her legal rights in this case.

In her judicial application, Micallef demanded that Global Capital pays her the financial damages she suffered. Dr Anna Mallia signed the application. 

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