Investment fund ordered to wind up

Make text smaller Make text larger

  • Clamping down: financial regulator the BMA has successfully petitioned the Supreme Court to wind up an investment fund

    Clamping down: financial regulator the BMA has successfully petitioned the Supreme Court to wind up an investment fund


A Bermudian-registered investment fund has been ordered by the Supreme Court to wind up because the island’s financial regulator found it had breached several regulations.

The Bermuda Monetary Authority petitioned the Supreme Court to wind up Cumulus Eastern European Property Fund Ltd, pursuant to section 36(1)(b) of the Investment Funds Act 2006 (the IFA) and the provisions of the Companies Act 1981.

The BMA said it no longer had confidence in Cumulus’s ability to manage its own affairs to the benefit of its investors.

Keiran Hutchison and Roy Bailey of EY Bermuda Ltd were appointed as joint provisional liquidators of Cumulus, after the court made the winding-up order last month.

The BMA said Cumulus was in breach of the IFA and the Fund Rules 2007.

In particular, said the regulator, there was a failure to prepare annual audited financial statements for the past five years.

“The company has provided audited financial statements for the year ended December 31, 2013, which statements are highly qualified and have not yet been signed off by the company or the auditors,” the BMA stated.

The regulator added that Cumulus had failed to meet the requirement to have an investment manager with day-to-day control over the management of the property of the company.

“The Authority viewed the above breaches as serious because of their extent and duration, and no longer had confidence in Cumulus’s ability to manage its affairs to the benefit of its investors,” the BMA stated.

“The Authority’s actions highlight the importance of its role in protecting the reputation of the jurisdiction and protecting the interests of investors.”

Anyone with immediate questions related to Cumulus or the liquidation, should contact Liam Carroll at Liam.Carroll@bm.ey.com or Shannon Dyer at sdyer@bma.bm

You must be registered or signed-in to post comment or to vote.

Published Aug 11, 2017 at 12:26 pm (Updated Aug 11, 2017 at 12:26 pm)

Investment fund ordered to wind up

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • What was the biggest shock of Election 17?
    • PLP 24 OBA 12
    • 41%
    • Famous over Richards
    • 40%
    • Lister's 'miracle' against Sousa
    • 8%
    • Peets running Dunkley close
    • 3%
    • Cox's 41 votes in C14
    • 8%
    • Total Votes: 5504
    • Poll Archive

    Today's Obituaries