Decision Notice - Upper Canada Securities Ltd. (2018-12-07)

Summary

This is a Decision Notice issued by the Cayman Islands Monetary Authority (CIMA) revoking the Restricted Mutual Fund Administrators licence of Upper Canada Securities Ltd. It documents specific, longstanding breaches of the Mutual Funds Law (2015 Revision) and confirms the licence revocation as effective action, following an earlier Warning Notice.

• Fee breach: Failure to pay annual licence fees and penalties for the years 2010 to 2018, contrary to section 14(3) of the Mutual Funds Law.
• Accounts breach: Failure to prepare and submit audited accounts to CIMA for the years ended 31 December 2007 to 2017, contrary to sections 20(1) and (2).
• Governance breach: Failure to obtain CIMA's written approval for appointment of directors and failure to maintain at least two directors, contrary to sections 21 and 22.
• Regulatory action: CIMA revoked the Company's Restricted Mutual Fund Administrators licence under section 31(3)(a), on grounds under sections 31(1)(a) and (d) that the Company was or was likely to become unable to meet its obligations and was not conducted in a fit and proper manner.

The decision is specific to Upper Canada Securities Ltd. and does not impose new ongoing obligations on other licensees; it serves as a public record of enforcement action and the reasons for revocation.

Applies to

mutual fund administrators, restricted mutual fund administrators

Deadlines

• 5 December 2018: Effective date of CIMA's decision to revoke the Company's licence.