Directive - Collection of Modern Art Inc. (2012-02-22)

Summary

This is an enforcement directive issued by the BVI Financial Services Commission against a specific investment fund, Collection of Modern Art Inc., under section 40(1)(b) of the Financial Services Commission Act, 2001. It is not a general rule of broad application but a targeted regulatory action against this named public fund.

• Suspension of subscriptions: The Fund must immediately suspend the subscription of shares by new and existing investors.
• Suspension of redemptions: The Fund must immediately suspend the redemption of shares by investors, until further notice from the Commission.
• Suspension of redemption payments: The Fund must suspend payment of redemption proceeds, including proceeds owed on outstanding redemption requests already made, until further notice.
• Independent art valuation: The Fund must obtain a valuation of the artwork it holds from an independent professional art appraiser acceptable to the Commission, who is not associated with the Fund, an auction house or an art gallery, and submit that valuation to the Commission within thirty days of the date of the directive.

The suspensions on subscriptions, redemptions and redemption payments remain in force until the Commission gives further notice; there is no automatic expiry stated in the directive.

Key obligations

• Suspend forthwith the subscription of shares by new and existing investors, until further notice from the Commission.
• Suspend forthwith the redemption of shares by investors, until further notice from the Commission.
• Suspend payment of redemption proceeds (including outstanding redemption requests) until further notice from the Commission.
• Obtain an independent valuation of the Fund's artwork from an appraiser acceptable to the Commission and not associated with the Fund, an auction house, or an art gallery, and submit that valuation to the Commission within thirty days of the date of the directive.

Applies to

public funds, investment business licensees, Collection of Modern Art Inc. (named entity)

Deadlines

• within thirty (30) days of the date of the directive: Deadline for the Fund to submit the independent art valuation to the Commission.