Directive - Emerging Markets Growth And Income Fund Inc. (2011-08-15)

Summary

This is an enforcement action notice published by the BVI Financial Services Commission recording a directive issued under section 40(1)(b) of the Financial Services Commission Act, 2001. It applies specifically to a named group of investment funds under the management of Castlestone Management Incorporated, including Emerging Markets Growth and Income Fund Inc., and imposes restrictions on their operations pending further oversight.

• Weekly reporting: Each named fund must provide the Commission, on a weekly basis, full details of its activities.
• Internal controls proposal: Each fund must submit to the Commission a proposal to implement more robust internal controls.
• Restriction on payments: The funds must refrain from making any payment of fees and expenses without the Commission's prior written consent, except for payments relating to fund administration services, brokerage, custody services, and audit and legal services.

The directive names eighteen funds under Castlestone Management Incorporated, including Aliquot Agriculture Fund Inc., Aliquot Gold Bullion Inc., Balanced Opportunity Inc., Emerging Markets Growth and Income Fund Inc., and others listed in the notice. The matter is recorded under reference INV0811/092.

Key obligations

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

Applies to

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