Regulatory Action against Zenith Finance Limited (“Zenith” and/or “the Company”)
MARCH 26, 2021

The Malta Financial Services Authority (“MFSA” or “the Authority) decided to impose a number of Directives against the Company as well as appointing a Competent Person for the Company.

Address:

Zenith Finance Limited
220, Immaculate Conception Street
Msida MSD 1838
Malta

Business Activity: Registered to act as Category 2 investment services licence under the Investment Services Act, 1994 (Chapter 370 of the Laws of Malta) (“the Act”).

REGULATORY ACTION

The MFSA considers that the Company is not in a position to continue properly servicing its clients whilst adhering to the applicable legal requirements, particularly those relating to the fitness and properness of the Company (Article 6(1)(a)(i) of the Act), the fitness and properness of the Company’s shareholders (Article 6(7) of the Act), as well as the Company’s sound and prudent management (Article 6(1)(d) of the Act). In this regard, on 26 March 2021 the MFSA directed the Company with immediate effect to:

(i) Refrain from onboarding of new clients and refrain from providing existing clients with any new or additional services;

(ii) Cease all outgoing transactions from the Company’s client accounts, including intra-client account transactions; and

(iii) Ensure that the Company and its directors maintain proper safeguard of all records relating to Zenith’s operations, including its investment services activities. The Company should therefore not destroy, conceal or alter such records in any way.

These Directives shall remain in place until such time as the MFSA may direct otherwise.

Furthermore, in terms of Article 15A(1)(b) and (c) of the Investment Services Act and for the purposes of safeguarding the interests of investors, the MFSA has decided to appoint Mr Stephen Paris to occupy the role of a Competent Person for the Company in order to take charge of the assets of the Company, including any assets related to the investment services business of the Company for the purposes of safeguarding the interests of the investors and consumers of the Company; as well as to assume control of the business of the Company to carry on that business until such time as the Authority may direct and to carry out such other function or functions in respect of such business as the Authority may direct.

The appointment of the Competent Person shall remain in force for a period of one (1) year subject to the possibility of renewal as the Authority may direct.

It should be noted that the MFSA’s decision may be appealed before the Financial Services Tribunal within the period as prescribed by the applicable law.

PUBLICATION

This notice is being published in terms of Article 16(8) of the Malta Financial Services Authority Act and Article 15(4) of the Investment Services Act.