Directive - Aliquot Gold Bullion Inc. (2011-08-15)

Summary

This is an enforcement directive issued by the British Virgin Islands Financial Services Commission under section 40(1)(b) of the Financial Services Commission Act, 2001, against a group of 20 funds managed by Castlestone Management Incorporated, including Aliquot Gold Bullion Inc. and related Aliquot and Castlestone-managed funds. The directive imposes reporting, internal controls, and payment restrictions on these funds pending further regulatory action.

• Weekly reporting: The named funds must provide the Commission with full details of their activities on a weekly basis.
• Internal controls: The funds must submit a proposal to the Commission to implement more robust internal controls.
• Payment restrictions: The funds must not pay any fees or expenses without the Commission's prior written consent, except for fees relating to fund administration, brokerage, custody services, and audit and legal services.

The directive names 20 funds under common management by Castlestone Management Incorporated as subject to these requirements; the matter is tracked under reference INV0811/092.

Key obligations

• Provide the Commission with full details of the fund's activities on a weekly basis
• Submit a proposal to the Commission for implementing more robust internal controls
• Refrain from making any payment of fees and expenses without the Commission's prior written consent, except for payments relating to fund administration, brokerage, custody, audit and legal services

Applies to

mutual funds, funds under management of Castlestone Management Incorporated, investment business entities

Deadlines

• weekly: Funds must provide the Commission with full details of their activities