Directive - Next 11 Emerging Fund Inc. (2011-08-15)

Summary

This is a 2011 enforcement 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 Next 11 Emerging Fund Inc. The directive imposes ongoing reporting, governance and expenditure restrictions on the named funds while the Commission's enforcement matter (Matter ID INV0811/092) proceeds.

• 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 fees relating to fund administration, brokerage, custody, and audit and legal services.

The directive applies to a specific list of 18 named funds under common management by Castlestone Management Incorporated, not to the investment funds sector generally.

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 or expenses without the Commission's prior written consent, other than payments for fund administration, brokerage, custody, audit and legal services

Applies to

Next 11 Emerging Fund Inc., Aliquot Agriculture Fund Inc., Aliquot Commodity Fund Inc., Aliquot Gold & Precious Metals Equities Fund Inc., Aliquot Gold Bullion Inc., Aliquot Precious Metals Inc., Balanced Opportunity Inc., Collection of Modern Art Inc., Concerto Alternative Alpha Inc., Consistent Return (Cash Management) Fund Inc., Emerging Markets Growth and Income Fund Inc., Global Property Growth & Income REITS Fund Inc., Inflation Target Recovery Fund Inc., Intelligent Portfolio (IQ-Asset Allocation) Inc., Porcupine Absolute Return Fund Inc., Porcupine Global Macro Plus Inc., Systematic Growth Fund Inc., World Index Growth and Income Fund Inc., funds managed by Castlestone Management Incorporated

Deadlines

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