Warning Notice - Titan Volatility Fund Offshore Ltd. and Titan Volatility Fund L.P. (2017-09-12)

Summary

This is a Warning Notice issued by the Cayman Islands Monetary Authority (CIMA) to Russell Abrams, in his capacity as operator of Titan Volatility Fund Offshore Ltd. (Reg. #4401) and Titan Volatility Fund L.P. (Reg. #4409). CIMA states that both funds are in ongoing breach of the Mutual Funds Law (2015 Revision). Because CIMA could not successfully contact or locate the operator despite reasonable efforts, it is publishing this notice to give notice to all interested parties.

• Audited accounts: Failure to prepare and submit audited accounts for financial years 2010 through 2016.
• Fees and penalties: Failure to pay annual fees, fee increases and registration penalties over multiple years (2012/2013 through 2017, depending on the fund).

• Proposed cancellation: CIMA proposes to cancel the mutual fund registrations of both funds under Section 30(16) of the Mutual Funds Law (2015 Revision), on the basis that representations indicate the funds were liquidated in December 2009 and have failed to meet termination requirements or become compliant with the Law.
• Fitness and propriety warning: CIMA warns that the operator's lack of communication may be taken into account when assessing fitness and propriety in relation to other regulated funds/licensees or future applications.
• Right to respond: The operator may make written representations to CIMA within 28 days of receipt, or such longer period as CIMA may approve, explaining why the proposed cancellation should not proceed.

This is an entity-specific enforcement notice rather than a rule of general application, but it illustrates CIMA's approach to non-compliant, unreachable mutual fund operators.

Key obligations

• The operator (Russell Abrams) may make written representations to CIMA within 28 days of receiving the Warning Notice, or such longer period as approved by CIMA, explaining why the proposed cancellation of the Funds' mutual fund registrations should not proceed.
• Written representations must be addressed to the undersigned (CIMA's Managing Director) at CIMA's stated address.

Applies to

mutual funds, operators of mutual funds

Deadlines

• within 28 days of receiving this Warning Notice: Deadline for the operator to submit written representations to CIMA as to why the proposed cancellation of the Funds' registrations should not be taken.