The Malta Stock Exchange has withdrawn Nexia BT’s corporate advisor status, becoming the latest agency or body to act against the company after their assets were frozen a week and a half ago.

In a short statement, the Exchange said that it has determined that Nexia BT Advisory Services Limited “will no longer be approved to provide services to prospective or current Prospects MTF companies.”

The Prospects MTF is a multilateral trading facility (MTF) operated by the Malta Stock Exchange. It provides a cost-effective opportunity for small and medium-sized enterprises (SMEs) to raise capital by issuing bonds or equity. Companies considering admission to Prospects MTF require the services of a Corporate Advisor prior to and following the admission process.

On its website, the Stock Exchange states that “the involvement of a Corporate Advisor ensures that transparency and corporate governance efficiencies are achieved and retained, thus instilling greater investor confidence.”

Nexia BT – through one of its sub-companies Nexia BT Advisory Services Limited – was one of such corporate advisor for the Prospects MTF market.

“The Exchange concluded its investigations into the feasibility and suitability of Nexia BT Advisory Services Limited to continue to operate as Corporate Advisors following the circumstances that arose after the freezing of assets resulting from the Investigation and Attachment Order issued by the Criminal Courts on the 21st September 2020”, the statement said.

Nexia BT was one of the 40 or so companies which had its assets frozen in a court order issued a week and a half ago.

The order saw the freezing of all the assets belonging to former OPM chief of staff Keith Schembri, and Nexia BT partners Brian Tonna and Karl Cini after reasonable suspicion of money laundering was found, only days after a magisterial inquiry into allegations that Schembri received kickbacks on the sale of passports was concluded.

Schembri, Tonna, Cini, and another Nexia BT partner Manuel Castagna were all arrested last Tuesday but released soon after on police bail.

Nexia have since had their licence to sell Maltese passports suspended, and have been slapped with enforcement directives by the MFSA as well.  Tonna and Cini meanwhile have had their warrants suspended by the Accountancy Board.