Decision Notice - Cancellation of Redwood Fund III, Ltd. (2018-10-30)

Summary

This is a decision notice issued by the Cayman Islands Monetary Authority (CIMA) recording the cancellation of the mutual fund registration of Redwood Fund III, Ltd. It is an individual enforcement action addressed to the Fund's directors, not a general rule change, and serves as a public record of that specific regulatory action.

• Background: The Fund had been in breach of sections 8(1) and 8(2) of the Mutual Funds Law (2015 Revision) for failing to prepare and submit audited accounts for the years ended 31 December 2014 through 2017, following a Warning Notice dated 5 September 2018.
• Action taken: CIMA cancelled the Fund's mutual fund registration under section 30(3)(a) of the Law.
• Reasons: CIMA found, under sections 30(1)(a) and (d) of the Law, that the Fund was or was likely to become unable to meet its obligations as they fell due, and that its direction and management had not been conducted in a fit and proper manner.
• Effective date: The cancellation decision took effect on 30 October 2018.

As a notice recording completed enforcement action against a single fund, it does not impose any new ongoing obligations on other regulated entities; it is informational for the wider industry and a formal notice to the affected fund's directors.

Applies to

mutual funds, directors of regulated mutual funds

Deadlines

• 30 October 2018: Effective date of CIMA's decision to cancel Redwood Fund III, Ltd.'s mutual fund registration.