Nexia BT banned as Corporate Advisor

Nexia BT
Miguela Xuereb

Tista' taqra bil- Malti.

The Malta Stock Exchange has cancelled the status of Nexia BT Advisory Services Limited as a Corporate Advisor.

The status of Nexia BT Advisory Services was withdrawn with immediate effect on Thursday after the Malta Stock Exchange issued a notice.

Nexia BT has seen its licence to sell passports revoked and has had two of its subsidiaries directed to refrain from taking on new clients or from providing additional services to existing ones by the Malta Financial Authorities after Brian Tonna was arrested along with disgraced former PM’s chief of staff Keith Schembri and Karl Cini, Nexia BT’s tax and international client services partner, in the wake of the conclusion of an inquiry into allegations that Schembri received kickbacks on the sale of passports with Nexia BT’s help.

In September, the Court issued an Investigation and Attachment Order against Tonna, Cini and others, as well as against Nexia BT and other companies. Their assets have been subsequently frozen.

In a brief statement on Thursday, the Malta Stock Exchange said that the company will no longer be approved to provide services to prospective or current Prospects MTF companies.

Multilateral trading facility is when small issuers raise capital by listing on a stock exchange. In order for small issuer to list, it would need to appoint a “Corporate Advisor”. By law such Corporate Advisor is meant to ascertain whether the issue is in order from an anti-money laundering and compliance perspective. Nexia BT used to act as a corporate advisor on behalf of small issuers. The MTF is specifically targeted for smaller SMEs.

Nexia BT Advisory Services Limited was investigated for its feasibility and suitability to continue operating as corporate advisors after the company had its assets frozen following an Investigation and Attachment Order issued in September.

The Malta Stock Exchange said that the cancellation of Nexia BT’s status as a corporate advisor was taken in the best interests of the market, investor protection and of the exchange.