Directive - Balanced Opportunity 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, addressed to a group of investment funds managed by Castlestone Management Incorporated, including Balanced Opportunity Inc. It imposes ongoing reporting, governance and spending-control requirements on those named funds.

• Weekly reporting: The Funds must provide the Commission, on a weekly basis, full details of their activities.
• Internal controls proposal: The Funds must submit to the Commission a proposal to implement more robust internal controls.
• Restriction on payments: 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, and audit and legal services.

The directive names seventeen funds under Castlestone Management Incorporated's management, including Balanced Opportunity Inc., Aliquot Agriculture Fund Inc., Systematic Growth Fund Inc. and others, all subject to the same restrictions under Matter ID INV0811/092.

Key obligations

• The named Funds must provide the Commission with full details of their activities on a weekly basis.
• The named Funds must submit a proposal to the Commission for implementing more robust internal controls.
• The named Funds must not pay any fees or expenses without prior written consent of the Commission, except for fund administration, brokerage, custody, and audit and legal services fees.

Applies to

investment funds, funds under the management of Castlestone Management Incorporated

Deadlines

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