Directive - Systematic Growth Fund Inc. (2011-08-15)

Summary

This is an enforcement action notice published by the BVI Financial Services Commission describing a directive issued under section 40(1)(b) of the Financial Services Commission Act, 2001. The directive was issued to a group of investment funds managed by Castlestone Management Incorporated, including Systematic Growth Fund Inc. and numerous related funds, imposing reporting, internal control and payment restrictions.

• Weekly reporting: The named Funds must provide the Commission with full details of their activities on a weekly basis.
• Internal controls proposal: The Funds must submit to the Commission a proposal to implement more robust internal controls.
• Payment restriction: The Funds must refrain from paying 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, which remain permitted.

The directive applies specifically to the listed funds under Castlestone Management Incorporated's management (including Aliquot Agriculture Fund Inc., Global Property Growth & Income REITS Fund Inc., Systematic Growth Fund Inc. and others named in the notice), and is recorded under Matter ID INV0811/092. It does not state a general commencement date or expiry period for the directive's requirements.

Key obligations

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

Applies to

Investment Business funds managed by Castlestone Management Incorporated (including Systematic Growth Fund Inc. and other named funds)

Deadlines

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