Warning Notice — APAM Protected Asset Management Unit Trust (2019-01-31)

Summary

This is a public Warning Notice issued by the Cayman Islands Monetary Authority (CIMA) to Cardinal International Corporation, Ltd., as Trustee of the APAM Protected Asset Management Unit Trust (Reg. #1956), a registered mutual fund. CIMA states the Fund has been in breach of the Mutual Funds Law (2015 Revision) for failing to prepare and submit audited accounts for the years 2000–2017 and failing to pay annual fees and penalties for 2003–2019. Because CIMA was unable to locate or correspond with the Trustee despite reasonable efforts, it is publishing this notice to give notice to all interested parties.

• Proposed cancellation: CIMA gives notice that it proposes to cancel the Fund's mutual fund registration under section 30(16) of the Mutual Funds Law (2015 Revision), on the basis that the Fund has ceased to carry on, or attempt to carry on, business as a mutual fund, supported by representations that no assets remain in the Fund and its inability to meet termination requirements.
• Fitness and propriety warning: CIMA also warns that the lack of communication may be taken into account when assessing the Trustee's fitness and propriety in connection with other regulated funds/licensees or future applications.

The notice affords the Trustee an opportunity to make written representations before the proposed cancellation takes effect, and provides contact details for further information. This is a case-specific enforcement/warning notice rather than a rule of general application, but it illustrates CIMA's approach to breaches of audited accounts and fee obligations and to registration cancellation for defunct funds.

Key obligations

• The Trustee must make any written representations regarding the proposed cancellation within 30 days of receiving the Warning Notice, or such longer period as approved by the Authority.
• If an extension of time to make representations is needed, the Trustee must submit the extension request within 10 days of receiving the Notice.
• Written representations must be addressed to the Managing Director of the Authority at CIMA's Grand Cayman address.

Applies to

mutual funds, trustees of mutual funds, authorised persons/licensees (fitness and propriety context)

Deadlines

• 30 days of receiving this Warning Notice: Deadline for the Trustee to submit written representations regarding 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 extension of time to make representations.