MFSA warns against investment firm claiming to be locally regulated

The Malta Financial Services Authority (MFSA) has issued a warning against an entity claiming to be a locally licensed investment firm.

The firm, known as Prolific Trades Ltd, misleadingly purports to be “a Maltese-directed investment services supplier that works under European and Maltese guidelines.”

It also makes use of a fake licence number, claiming it was issued by the MFSA.

Malta’s financial services watchdog warned that the firm is neither a Maltese registered company, nor licensed or otherwise authorised by the MFSA to provide any investment services or other financial services which are required to be licensed or otherwise authorised under Maltese law.

The MFSA urged the public to refrain from entering into any transactions or otherwise with the firm on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the laws of Malta.

It also reminds consumers of financial services not to enter into any financial services warning transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.

“Investors should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media,” read the MFSA’s statement.

A list of entities licensed by the MFSA can be viewed here.