Directive - Aliquot Precious Metals Inc. (2011-08-15)

Summary

This is an enforcement directive issued by the BVI Financial Services Commission under section 40(1)(b) of the Financial Services Commission Act, 2001, against a group of investment funds managed by Castlestone Management Incorporated, including Aliquot Precious Metals Inc. and related Aliquot and Castlestone-managed funds. It imposes ongoing reporting and spending restrictions on the named funds while the Commission's enforcement matter (INV0811/092) is active.

• Weekly reporting: The 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 for implementing more robust internal controls.
• Payment restriction: 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 numerous Castlestone-managed entities as subject to these requirements, indicating a coordinated regulatory action across the fund group rather than a single-entity measure.

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 paying any fees or expenses without the Commission's prior written consent, except for fund administration, brokerage, custody, audit and legal service fees.

Applies to

investment funds, funds under management of Castlestone Management Incorporated

Deadlines

• weekly: Funds must provide full details of their activities to the Commission on a recurring weekly basis.