Decision Notice - China Commonwealthy Fund (2019-01-31)

Summary

This is a Decision Notice issued by CIMA against China Commonwealthy Fund (Reg. #1129564), addressed to its directors. It records CIMA's cancellation of the Fund's mutual fund registration following continued breaches of the Mutual Funds Law and the Directors Registration and Licensing Law after an earlier Warning Notice.

• Breach found: Failure to prepare and submit audited accounts to CIMA under sections 8(1) and 8(2) of the Mutual Funds Law (2015 Revision) for the years ended 31 December 2014 to 31 December 2017.
• Directors' breach: The Fund's directors failed to fulfil their registration requirements under the Directors Registration and Licensing Law, 2014 for the years 2015 to 2018.
• Action taken: CIMA cancelled the Fund's mutual fund registration under section 30(3)(a) of the Mutual Funds Law, on the basis that the Fund was or was likely to become unable to meet its obligations, and that its direction and management had not been conducted in a fit and proper manner (sections 30(1)(a) and (d)).
• Effective date: The cancellation decision took effect on 28 November 2018.

This notice is case-specific enforcement action against a named fund and its directors; it does not create new ongoing obligations for other regulated entities, but illustrates CIMA's enforcement of audited accounts filing and directors registration requirements.

Applies to

mutual funds, directors of mutual funds