The Malta Financial Services Authority has barred Trive shareholder Kasim Garipoglu from taking new positions requiring its approval for 10 years and ordered him to divest his shareholding in the broker within six months.
The regulator also ordered Trive Financial Services Europe Limited to stop all incoming and outgoing transactions from client accounts, citing deficiencies in safeguarding client assets and reconciliation procedures.
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The MFSA ruled that Garipoglu was no longer fit and proper to hold positions requiring its approval. The order covers qualifying shareholdings he holds directly or indirectly in Trive. He must divest those holdings as soon as possible and within six months of the decision.
The MFSA’s action followed a decision by the UK’s Financial Conduct Authority to ban Garipoglu from working in UK financial services. The FCA found that he lacked “honesty and integrity” and had deliberately provided false and misleading information to the FCA and other regulators.
MFSA Orders Trive to Address Client Asset Deficiencies
The MFSA’s restrictions on Trive began in September, when the regulator ordered the firm to stop onboarding new clients until deficiencies in safeguarding client assets and reconciliation procedures had been adequately addressed.
The regulator also required Trive’s board to approve and sign off on transactions involving designated client accounts or clients’ money and assets, with appropriate oversight and supervisory controls.
Trive was instructed to provide documentation confirming that client money held by liquidity providers was maintained in the relevant accounts. The MFSA also ordered the firm to prioritise transferring client money held with counterparties to those meeting regulatory requirements.
Client Transaction Freeze Remains Until Compliance
On 24 September, the regulator imposed a further restriction, ordering Trive to stop all incoming and outgoing transactions from client accounts with immediate effect. The restriction will remain in place until the firm transfers client money to counterparties that meet the requirements or the MFSA decides otherwise.
The MFSA’s notice does not specify the amount of client money affected or state that any funds are missing.
The regulator said its decisions may be appealed before the Financial Services Tribunal within the period prescribed by law.
This article was written by Tareq Sikder at www.financemagnates.com.Retail FXRead More
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