Meridian Income Bond Limited (2004-01-06)

Summary

This is a public statement issued by the BVI Financial Services Commission announcing that the BVI High Court granted a protection order against Meridian Income Bond Limited (the Fund) on 12 December 2003, following an ex parte application by the Commission under section 39(2) of the Financial Services Commission Act, 2001. The order also directed that the Fund be wound up by the Court under the Companies Act.

• Redemption suspension: The Fund must forthwith suspend redemptions and refrain from paying any sums by way of redemption of shares or settlement of redemption requests in any manner.
• Management fees: The Fund must refrain from paying any outstanding or future management fees to its manager or to any person on its manager's behalf.
• Winding up: The Court ordered that the Fund be wound up under the Companies Act.
• Further hearing: A return date for further hearing of the matter was fixed for 12 January 2004.
• Discharge of order: The Fund was given liberty to apply to discharge the order by giving the Commission at least 3 days written written notice.

This notice is specific to Meridian Income Bond Limited and does not impose ongoing obligations on the wider regulated population; it is primarily informational, alerting the public and industry to the Commission's enforcement action and the Court's protection and winding up order against this particular fund.

Key obligations

• Meridian Income Bond Limited must immediately suspend redemptions and refrain from paying redemption sums or settling redemption requests
• Meridian Income Bond Limited must refrain from paying any outstanding or future management fees to its manager or any person on the manager's behalf
• Meridian Income Bond Limited must give the Commission at least 3 days written notice if seeking to discharge the protection order

Applies to

mutual funds

Deadlines

• 12th January, 2004: Return date fixed for the further hearing of the matter concerning the protection order against Meridian Income Bond Limited
• at least 3 days written notice: Notice period the Fund must give to the Commission before seeking to discharge the Court's protection order