Ariadne Capital’s licence suspended amid Julie Meyer saga

The Malta Financial Services Authority has suspended with immediate effect the licence of Ariadne Capital Malta Limited, whose sole director is well-known American venture capitalist Julie Meyer, after it found the company had committed a number of serious breaches to the licence conditions.

The financial watchdog said it had been investigating the conduct of the company, as well as of Meyer and her related company Ariadne Capital ECO2 VC Limited Partnership, since November 2017.

“Following careful consideration of the facts available and due process, the Authority identified a number of serious breaches of licence conditions committed by the company,” the MFSA said, adding that these included failure to have in place a Compliance Officer at all times, to cooperate and collaborate with the MFSA, and to abide by the "dual control" principle.

The MFSA also found that the company had inadequate resources to carry out management of Alternative Investment Funds and had failed to establish a risk management function, which is separate from the investment management function.

“[Following the suspension] the Company is no longer in a position to provide investment services under the Investment Services Act. The MFSA’s decision may be appealed to the Financial Services Tribunal,” the Authority highlighted.

Ariadne Capital’s licence was as a “Category 2 Investment Services Licence Holder”, which enabled it to control clients’ money and assets and to act as an Alternative Investment Fund Manager pursuant to the Alternative Investment Fund Managers Directive.

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Magistrate displeased at being emailed by Julie Meyer about her case

The suspension comes in the midst of three ongoing lawsuits in Malta against Meyer, who had lived in the United Kingdom since the late 1990s before reportedly moving to Malta in 2016, over employees’ unpaid salaries and outstanding bills - although she has failed to appear for the last two court sittings after police were unable to track her down.

Meyer drew the court’s ire this week, after she emailed Magistrate Donatella Frendo Dimech about her case, in what the court declared to be an illegal act and a breach of ethics.