MFSA restricts Trive onboarding and client-account transactions

The Malta Financial Services Authority’s directives against Trive Financial Services Europe Limited restrict new-client onboarding and transactions from client accounts. The notice identifies Trive as an investment firm and links the measures to deficiencies in safeguarding client assets and reconciliation procedures.

The MFSA said it imposed the directives under Article 15 of the Investment Services Act and Article 16(2)(b) of the Malta Financial Services Authority Act. The notice records supervisory action but does not describe an adjudicated enforcement finding or impose a penalty.

Directives effective from 1 September

The first set of directives took effect on 1 September 2026. Trive must cease onboarding new clients with immediate effect, with the restriction continuing until the MFSA is satisfied that the identified deficiencies have been adequately addressed.

The MFSA also directed Trive’s board to approve and sign off transactions involving client-designated accounts or client money and assets. The notice says this is intended to ensure oversight and adequate supervisory controls over those transactions.

Trive must provide the MFSA with documentation confirming that client money held by liquidity providers remains in the relevant accounts within 48 hours of receiving the directive. It must also prioritise transferring client money to counterparties that meet Regulation 9(1) of the Investment Services Act (Control of Assets) Regulations, S.L. 370.05, within one week of the directive.

Immediate restriction on client-account transactions

On 24 September, the MFSA directed Trive to cease all incoming and outgoing transactions from client accounts with immediate effect.

That restriction remains until Trive transfers client money to counterparties meeting Regulation 9(1), or until the MFSA decides otherwise. The notice does not specify whether particular client accounts or transaction types are exempt, so its published wording covers incoming and outgoing transactions from clients’ accounts generally.

The measures have separate conditions for ending. New-client onboarding is suspended pending the MFSA’s satisfaction with remediation, while client-account movements are restricted until the required transfers occur or the Authority varies its direction. Board approval requirements apply to transactions involving client-designated accounts and client money or assets.

The notice does not set out the underlying reconciliation failures, identify the liquidity providers or state the value of client money affected. It also does not say whether the deficiencies have been admitted, finally determined or resolved. The published record establishes the directives’ existence and scope but leaves those points open.

The MFSA said its decision may be appealed before the Financial Services Tribunal within the period prescribed by applicable law. The notice identifies no appeal filing or Tribunal event. The official record to monitor is the MFSA’s confirmation of remediation, the required Regulation 9(1) transfers and any decision to vary or lift the transaction restriction.