Decision Notice - Quanto Strategic Currency Fund Ltd. (2018-05-01)

Summary

This is a Decision Notice issued by CIMA recording the cancellation of the mutual fund licence held by Quanto Strategic Currency Fund Ltd. (Lic. #6015). It is an enforcement action specific to this fund rather than a rule of general application, but it illustrates the grounds and process CIMA uses when cancelling a licence.

• Background: CIMA had appointed controllers (Keith Blake and Alexander Lawson of KPMG) on 19 September 2014 under section 30(3)(e) of the Mutual Funds Law to take control of the Fund's affairs; the controllership has now ended and there is no funding available to proceed with a formal winding up.
• Action taken: CIMA cancelled the Fund's mutual fund licence pursuant to section 30(3)(a) of the Mutual Funds Law (2015 Revision).
• Reasons cited: The Fund was unable to meet its obligations as they fell due; it carried on business without complying with its licence conditions contrary to section 5(5) of the Law; and its direction and management had not been conducted in a fit and proper manner (grounds under sections 30(1)(a), (c) and (d)).
• Effective date: The cancellation decision took effect on 27 April 2018.

The notice is addressed to the Fund's director (Quanto Management Limited) and does not impose new ongoing compliance obligations on the wider industry; it simply records the outcome of CIMA's enforcement process against this specific fund.

Applies to

mutual funds, mutual fund licensees

Deadlines

• 27 April 2018: Effective date of CIMA's decision to cancel the Fund's mutual fund licence.