FGI Radius Fund (2019-02-01)

Summary

This is a warning notice issued by the Cayman Islands Monetary Authority (CIMA) to Intertrust Corporate Services (Cayman) Limited, in its capacity as trustee of the FGI Radius Fund (Registration #585222). CIMA had previously notified the Fund in 2016 and 2018 that it was in breach of the Mutual Funds Law (2015 Revision), and states that no satisfactory response was received.

• Audited accounts: The Fund remains in breach for failing to prepare and submit audited accounts for the years ended February 2014 through February 2018 (sections 8(1) and 8(2)).
• Fees and penalties: The Fund remains in breach for failing to pay annual fees and penalties for 2017, 2018 and 2019 (section 9).

Because of these continuing breaches, CIMA gives formal notice under section 30(16) of the Law that it proposes to cancel the Fund's mutual fund registration, on the basis that the Fund appears to have ceased to carry on or attempt to carry on business as a mutual fund. This notice is specific to the FGI Radius Fund and its trustee, not a general rule applicable to the wider industry, though it illustrates CIMA's enforcement approach for funds in the same position, namely unpaid fees and missing audited accounts.

The notice affords the trustee a right to make written representations to CIMA's Managing Director before any final cancellation decision, and sets out strict timeframes for doing so, including a shorter window to request an extension of time.

Key obligations

• The trustee may submit written representations to CIMA's Managing Director opposing the proposed cancellation within 30 days of receiving the Warning Notice, or a longer period if requested and approved by the Authority.
• If the trustee wishes to request an extension of the 30-day representation period, it must submit that extension request within 10 days of receiving the Notice.
• Underlying (though referenced as ongoing breaches rather than fresh obligations in this notice) the Fund is required to prepare and submit audited accounts under sections 8(1) and 8(2) of the Mutual Funds Law and to pay outstanding annual fees and penalties under section 9 of the Law.

Applies to

mutual funds, trustees of mutual funds

Deadlines

• 30 days of receiving this Warning Notice: Deadline for the trustee to submit written representations to CIMA opposing the proposed cancellation of the Fund's mutual fund registration.
• 10 days of receiving the Notice: Deadline for the trustee to submit a request for an extension of the 30-day representation period, if needed.