| Mutual Funds Law |
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The Fund will fall within the
definition of a "mutual fund" in terms of
the Mutual Funds Law (1996 Revision) of the
Cayman Islands ("the Law") and accordingly
will be regulated in terms of that Law. The
obligations of the Fund are (a) to register
the Fund with the Cayman Islands Monetary
Authority ("the Monetary Authority") in the
Cayman Islands appointed in terms of the Law
(b) to file with the Monetary Authority prescribed
details of this Confidential Information Memorandum
and any changes to it (c) to file annually
with the Monetary Authority accounts audited
by an approved auditor and (d) to pay a prescribed
registration fee. |
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As a regulated mutual fund the
Fund will be subject to the supervision of
the Monetary Authority and the Monetary Authority
may at any time instruct the Fund to have
its accounts audited and to submit them to
the Monetary Authority within such time as
the Monetary Authority specifies. In addition
the Inspector may ask the Directors to give
the Monetary Authority such information or
such explanation in respect of the Fund as
the Monetary Authority may reasonably require
to enable him to carry out its duty under
the Law. |
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The Directors must give the Monetary
Authority access to or provide at any reasonable
time all records relating to the Fund and
the Monetary Authority may copy or take an
extract of a record he is given access to.
Failure to comply with these requests by the
Monetary Authority may result in substantial
fines being imposed on the Directors and may
result in the Monetary Authority applying
to the court to have the Fund wound up. |
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The Monetary Authority is prohibited
by the Law from disclosing any information
relating to the affairs of a mutual fund other
than disclosure required for the effective
regulation of a mutual fund or when required
to by law or by the court. |
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The Monetary Authority may take
certain actions if it is satisfied that a
regulated mutual fund is or is likely to become
unable to meet its obligations as they fall
due or is carrying on or is attempting to
carry on business or is winding up its business
voluntarily in a manner that is prejudicial
to its investors or creditors. The powers
of the Monetary Authority include inter alia
the power to require the substitution of Directors,
to appoint a person to advise the Fund on
the proper conduct of its affairs or to appoint
a person to assume control of the affairs
of the Fund. There are other remedies available
to the Monetary Authority including the ability
to apply to the court for approval of other
actions. |
