Directive - Intelligent Portfolio (IQ-Asset Allocation) Inc. (2011-08-15)

Summary

This is an enforcement action notice describing a 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 Intelligent Portfolio (IQ-Asset Allocation) Inc. The directive imposes ongoing reporting and spending restrictions on the named funds while the Commission's concerns are addressed.

• Weekly reporting: The named 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 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, and audit and legal services.

The directive names a list of Castlestone-managed funds subject to these requirements, identified under Matter ID INV0811/092. The notice does not state a specific end date or review period for the directive, and its current legal status is not indicated in the source text.

Key obligations

• Provide the Commission with full details of the Funds' 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 prior written consent of the Commission, except for payments relating to fund administration, brokerage, custody, and audit and legal services

Applies to

Investment funds under management of Castlestone Management Incorporated (Investment Business / mutual funds)

Deadlines

• weekly basis: Funds must report full details of their activities to the Commission weekly