Regulatory Alerts2018-11-28
Cayman Islands Monetary Authority Decision Notice – Cancellation of China Commonwealth Fund Registration
The Cayman Islands Monetary Authority has cancelled the mutual fund registration of China Commonwealth Fund effective 28 November 2018. This action addresses the Fund's failure to submit audited accounts for 2014 through 2017 and its directors' non-compliance with statutory registration requirements for 2015 through 2018. CIMA invoked sections 30(1)(a) and (d) of the Mutual Funds Law to conclude that the Fund is likely unable to meet its obligations and has not been managed in a fit and proper manner.
[LOGO] CAYMAN ISLANDS MONETARY AUTHORITY
28 November 2018
Mr. Shihong Zhu Ms. Fengzhen Jia Directors China Commonwealth Fund c/o Estera Trust (Cayman) Limited P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands
By Post and Email
Dear Sirs,
Re: Decision Notice – China Commonwealth Fund (Reg. #1129564) ("the Fund")
We write to you in your capacity as Directors of the Fund. We refer to the Warning Notice dated 8 October 2018.
The Fund remains in breach of the Mutual Funds Law (2015 Revision) ("the Law") as follows:
- Sections 8(1) and 8(2) of the Law for failing to prepare and submit audited accounts to the Authority for the years ended 31 December 2014 to 31 December 2017.
Furthermore, the Directors of the Fund are in breach of the Directors Registration and Licensing Law, 2014 for failing to fulfil their registration requirements for the years 2015 to 2018.
TAKE NOTICE: The Cayman Islands Monetary Authority of 80 Shedden Road, Elizabethan Square, P.O. Box 10052, Grand Cayman KY1-1001, Cayman Islands, has taken the following action:
ACTION: The Authority has cancelled the Fund’s mutual fund registration pursuant to section 30(3)(a) of the Law.
REASONS: The Authority is, pursuant to sections 30(1)(a) and (d) of the Law, satisfied that (i) the Fund is or is likely to become unable to meet its obligations as they fall due; and (ii) the direction and management of the Fund has not been conducted in a fit and proper manner.
EFFECTIVE DATE OF DECISION: The Authority’s decision regarding the above action is effective 28 November 2018.
80 Shedden Road, Elizabethan Square, P.O. Box 10052, Grand Cayman KY1 - 1001, Cayman Islands Tel: 345-244-1639, Fax: 345-946-4651, Email: ContactCompliance@cimoney.com.ky, Web: www.cima.ky
The Directors China Commonwealth Fund c/o Estera Trust (Cayman) Limited 28 November 2018 Page 2
Yours faithfully,
[Signature]
Patrick Bodden Deputy Managing Director - Operations
80 Shedden Road, Elizabethan Square, P.O. Box 10052, Grand Cayman KY1 - 1001, Cayman Islands Tel: 345-244-1639, Fax: 345-946-4651, Email: ContactCompliance@cimoney.com.ky, Web: www.cima.ky