The MFSA suspended the operations of Zenith Finance Limited and Zenith (Tied Insurance Intermediary) Limited on Friday, hours after its owners Matthew Pace and Lorraine Falzon were granted bail over money laundering charges.

The two, along with their advisory firm, previously known as MFSP, were charged with a slew of other financial crimes on Saturday.  

Their case is linked to alleged graft involving former OPM chief of staff Keith Schembri and former managing directors of Allied Newspapers Adrian Hillman and Vincent Buhagiar.

On Friday the Malta Financial Services Authority ordered Zenith Finance and TII to refrain from taking on new clients or provide existing ones with new or additional services. 

The companies were also instructed to stop all outgoing transactions from accounts that hold clients' monies and ensure that records about their operations were properly safeguarded.

The MFSA warned them not to destroy, conceal or alter such documents in any way.

The authority also appointed Stephen Paris to safeguard the interests of clients, following the resignation of Pace and Falzon.

He will take charge of all the assets of Zenith Finance, safeguard the interests of investors and consumers, as well as carry on the company's business.

When it comes to Zenith TII, Paris will represent the company with existing clients, safeguard the clients' funds and ensure that the company's records were not destroyed, concealed or altered.

In a statement, the MFSA said it "fully understands and appreciates" clients' concerns.

"The protection of clients and their assets is one of the MFSA’s main regulatory objectives," it added,

The authority said it will be "closely monitoring" criminal proceedings against Zenith Finance, Pace and Falzon.

More information here.