A Malta-based investment firm has welcomed a decision by the financial regulator to drop limitations imposed on it in 2016.

The decision paves the way for Futura Investment Management Limited to become a full alternative investment fund manager, in line with EU directives.

Futura’s application for a licence upgrade, filed in 2014, was frozen by the MFSA two years later after the company’s name was linked to issues faced by Banca Popolare di Vicenza.

The allegations, published by Italian media, were that Futura was being investigated as part of that bank’s bankruptcy. Futura strenuously denied those allegations as completely false and unfounded and said the MFSA decision to freeze its application as a result of them had a major impact on its business.

“This move held Futura back in its investment decisions and its move to become the largest asset manager in Malta with a portfolio worth €1.4 billion. This growth had been further compounded by the MFSA imposing directives on Futura to stop it from increasing its assets under management and from marketing its funds in general – directives which have since been withdrawn,” it said in a statement.

The MFSA has now published a decision noting the company’s “goodwill” and saying it has settled pending issues with it “subject to a number of terms”.

“As part of the settlement, the authority has decided to lift the directives issued by it on June 9, 2016,” the MFSA said. Futura, in turn, said it will be withdrawing its appeal against the MFSA.

“Futura and its management team welcomes this positive news and remains fully committed to being a strong presence and influential stakeholder in the fund industry, and especially in the financial sector and economic community of the Maltese islands,” the company said in a statement.