Public Statement No. 3 of 2009 (11 March 2009) - Stanford International Management Ltd.

Summary

This is a public statement issued by the BVI Financial Services Commission under Section 37A(4) of the Financial Services Commission Act, 2001, informing the public of a regulatory directive served on Stanford International Management Ltd (the Licensee) on 3 March 2009. The directive was issued under Section 40(1)(b) of the Act to protect the property, customers and creditors connected to the Licensee's fund management activities.

• Suspension of activities: The Licensee must forthwith suspend all activities relating to the management of the assets of the International Fixed Income Stanford Fund Ltd, except those activities necessary to maintain the Fund's financial position.
• Suspension of other mandates: The Licensee must also suspend all activities relating to the management of assets of any other mutual fund or entity for which it provides management services, until further notice from the Commission.
• Weekly reporting: The Licensee must submit weekly reports to the Commission covering total assets under management, all fees earned or charged and monies paid to the Licensee for any activity, and details of all litigation involving or affecting the Licensee, until further notice.

The statement notes that the Commission will provide further updates as matters progress. It is directed specifically at Stanford International Management Ltd and does not impose general obligations on other licensees.

Key obligations

• Stanford International Management Ltd must forthwith suspend all activities relating to the management of the assets of the International Fixed Income Stanford Fund Ltd, except activities needed to maintain the Fund's financial position, until further notice from the Commission.
• Stanford International Management Ltd must suspend all activities relating to the management of assets of any other mutual fund or entity for which it provides management services, until further notice from the Commission.
• Stanford International Management Ltd must submit weekly reports to the Commission detailing total assets under management, all fees earned or charged and monies paid to it, and details of all litigation involving or affecting it, until further notice from the Commission.

Applies to

Stanford International Management Ltd (investment business licensee), International Fixed Income Stanford Fund Ltd (mutual fund)

Deadlines

• until further notice by the Commission: Suspension of fund management activities and weekly reporting obligations remain in effect until the Commission issues further notice.
• weekly: Licensee must submit reports to the Commission on a weekly basis covering assets under management, fees/monies received, and litigation details.