Regulatory Action against Zenith (Tied Insurance Intermediary) 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 Qualified Person for the Company.

Address:

Zenith (Tied Insurance Intermediary) Limited
220, Immaculate Conception Street
Msida MSD 1838
Malta

Business Activity: Enrolled to act as a Tied Insurance Intermediary under the Insurance Distribution Act (Chapter 487 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. 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 accounts holding clients’ monies; and

(iii) Ensure that the Company and its directors maintain proper safeguard of all records relating to Zenith’s operations. 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 16(2)(c) of the Malta Financial Services Authority Act and for the purposes of safeguarding the interests of policyholders, the MFSA has decided to appoint Mr Stephen Paris to occupy the role of a Qualified Person for the Company in order to [i] liaise with Mapfre MSV Life plc and Mapfre Middlesea plc (“the Principals”) in respect of the relationship between the Company and the Principals and any actions which the Principals deem fit to take vis-à-vis the Company; [ii] act as the representative of the Company vis-à-vis the existing clients of the Principals and to ensure that any queries of the clients addressed to the Company are duly answered;  [iii] safeguard the funds of the clients which are held in the clients’ account; [iv] ensure that the records of the Company are duly safeguarded so that nothing is destroyed, concealed or altered; and [v] act on behalf of the Company in the case that a board of directors is not properly constituted while providing prior approval to the decisions of the board of directors in the case it is properly constituted.

The appointment of the Qualified 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.