Decision Notice - Mutual Fund Registration Cancelled for Sovereign High Security Fund SPC (2025-12-10)

Summary

This is a Decision Notice published by CIMA disclosing that it has cancelled the mutual fund registration of Sovereign High Security Fund SPC (Reg. #7996), following an earlier Warning Notice and unremedied breaches of the Mutual Funds Act. The cancellation took effect on 25 November 2025 and CIMA also found that a named director is not fit and proper to hold a director position in a regulated mutual fund.

• Audited accounts breach: Failure to prepare and submit audited accounts to CIMA for the years ended 31 December 2018 through 2024, contrary to sections 8(1) and 8(2) of the Mutual Funds Act.
• Fee and penalty breach: Failure to pay prescribed annual fees and accrued penalties for 2023, 2024 and 2025, contrary to sections 9(1) and 9(3) of the Mutual Funds Act.
• Registered office breach: The Fund had no Registered Office, a requirement under section 50(1) of the Companies Act (2025 Revision).
• Fitness and propriety finding: CIMA assessed director Mr. Jeremy Leach as not fit and proper to hold a position as director of a regulated mutual fund.
• Regulatory action: Pursuant to section 30(3)(a) of the Mutual Funds Act, CIMA cancelled the Fund's mutual fund registration, effective 25 November 2025.
• Appeal right: The Fund may appeal CIMA's decision to the Grand Court under section 36 of the Mutual Funds Act.

This notice is an official extract concerning a single named fund and its directors; it does not create ongoing compliance obligations for other regulated entities, though it illustrates the audited accounts, fee payment and registered office requirements CIMA enforces under the Mutual Funds Act and Companies Act.

Applies to

registered mutual funds, directors of registered mutual funds

Deadlines

• 25 November 2025: Effective date on which CIMA's decision to cancel the Fund's mutual fund registration took effect.