The Malta FinancialServices Authority has barred Trive shareholder Kasim Garipoglu from taking newpositions requiring its approval for 10 years and ordered him to divest hisshareholding in the broker within six months. The regulator alsoordered Trive Financial Services Europe Limited to stop all incoming andoutgoing transactions from client accounts, citing deficiencies in safeguardingclient assets and reconciliation procedures.London's trading industry is coming home!The MFSA ruled thatGaripoglu was no longer fit and proper to hold positions requiring itsapproval. The order covers qualifying shareholdings he holds directly orindirectly in Trive. He must divest those holdings as soon as possible andwithin six months of the decision.The MFSA’s actionfollowed a decision by the UK’s Financial Conduct Authority to banGaripoglu from working in UK financial services. The FCA found that helacked “honesty and integrity” and had deliberately provided false andmisleading information to the FCA and other regulators.MFSA Orders Trive to Address ClientAsset DeficienciesThe MFSA’srestrictions on Trive began in September, when the regulator ordered the firmto stoponboarding new clients until deficiencies in safeguarding client assets andreconciliation procedures had been adequately addressed.The regulator alsorequired Trive’s board to approve and sign off on transactions involvingdesignated client accounts or clients’ money and assets, with appropriateoversight and supervisory controls.Trive was instructedto provide documentation confirming that client money held by liquidityproviders was maintained in the relevant accounts. The MFSA also ordered thefirm to prioritise transferring client money held with counterparties to thosemeeting regulatory requirements.Client Transaction Freeze Remains UntilComplianceOn 24 September, theregulator imposed a further restriction, ordering Trive to stop all incomingand outgoing transactions from client accounts with immediate effect. Therestriction will remain in place until the firm transfers client money tocounterparties that meet the requirements or the MFSA decides otherwise.The MFSA’s notice doesnot specify the amount of client money affected or state that any funds aremissing.The regulator said itsdecisions may be appealed before the Financial Services Tribunal within theperiod prescribed by law.This article was written by Tareq Sikder at www.financemagnates.com.