Azure Energy Fund, Inc. (2016-03-03)

Summary

This is a Warning Notice issued by the Cayman Islands Monetary Authority (CIMA) to the directors of Azure Energy Fund, Inc., published because CIMA was unable to locate or correspond with them despite reasonable efforts. It sets out that the Fund breached Sections 8(1), 8(2) and 9 of the Mutual Funds Law (2015 Revision).

• Audited accounts: Failure to prepare and submit audited accounts for the years 2003 to 2008.
• Fees and penalties: Failure to pay annual fees and penalties for 2008 through 2016.

CIMA states that, based on representations that the Fund ceased business on 31 January 2008 and that all investors were fully redeemed, it is satisfied the Fund has ceased carrying on (or attempting to carry on) business as a mutual fund. On that basis, CIMA gives formal notice of its proposed action under Section 30(16) of the Mutual Funds Law to cancel the Fund's mutual fund registration.

The notice also warns that the directors' lack of communication with CIMA may be taken into account when assessing their fitness and propriety in relation to other regulated mutual funds or licensees, or in future licensing applications. This is a case-specific enforcement/warning notice rather than a rule of general application, though it illustrates CIMA's approach to non-compliant, unresponsive funds.

Key obligations

• The directors may make written representations to CIMA within 28 days of receiving the Warning Notice (or a longer period if requested and approved) explaining why the proposed cancellation of the Fund's registration should not proceed.
• Written representations must be addressed to the undersigned (CIMA's Managing Director) at CIMA's stated address.

Applies to

mutual funds, directors of mutual funds, licensees regulated under the Mutual Funds Law

Deadlines

• within 28 days of receiving this Warning Notice: Deadline for the Fund's directors to submit written representations to CIMA as to why the proposed cancellation of the Fund's registration should not be made.