Directive - Consistent Return (Cash Management) Fund 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 named group of investment funds managed by Castlestone Management Incorporated, including Consistent Return (Cash Management) Fund Inc. It imposes ongoing reporting, governance and payment-control restrictions on those funds pending resolution of the Commission's concerns.

• Weekly reporting: Each named fund must provide the Commission with full details of its activities on a weekly basis.
• Internal controls proposal: Each fund must submit to the Commission a proposal for implementing more robust internal controls.
• Restriction on payments: Funds must not pay any fees or expenses without the Commission's prior written consent, except for payments for fund administration, brokerage, custody, and audit and legal services.

The directive applies to a specific list of Castlestone-managed funds identified by name (Matter ID INV0811/092) and does not establish general rules for other market participants.

Key obligations

• The named funds must provide the Commission with full details of their activities on a weekly basis.
• The named funds must submit to the Commission a proposal to implement more robust internal controls.
• The named funds must not make any payment of fees or expenses without the Commission's prior written consent, other than payments for fund administration, brokerage, custody, audit and legal services.

Applies to

Investment funds under the management of Castlestone Management Incorporated (named funds including Consistent Return (Cash Management) Fund Inc.)

Deadlines

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