Directive - Inflation Target Recovery Fund Inc. (2011-08-15)

Summary

This is an enforcement action 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 Inflation Target Recovery Fund Inc. The directive imposes ongoing reporting, governance, and payment restrictions on the named funds pending further oversight by the Commission.

• 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 to implement more robust internal controls.
• Restriction on payments: The funds must refrain from paying any fees and expenses without the Commission's prior written consent, except for fees relating to fund administration, brokerage, custody, audit and legal services.

The directive names seventeen funds under Castlestone Management Incorporated's management, including Aliquot Agriculture Fund Inc., Aliquot Commodity Fund Inc., Inflation Target Recovery Fund Inc., Porcupine Absolute Return Fund Inc., and others, all subject to the same requirements under Matter ID INV0811/092.

Key obligations

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

Applies to

mutual funds, investment business, funds managed by Castlestone Management Incorporated

Deadlines

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