The Bermuda Monetary Authority today initiated winding-up proceedings against local investment firm Emerald Financial Group (EFG).

This afternoon’s announcement by the financial regulator followed the arrest of a 45-year-old woman this morning in connection with a Police investigation into Emerald.

The BMA is seeking the winding up of EFG and two other entities in the group, Emerald Investment Management Ltd. and Directrade. The company’s business includes pension and investment funds management, investment advisory services and equity trading services.

The regulator said its move was separate from the Police action, but that the arrest “has exacerbated the Authority’s concerns about the three entities and their suitability to conduct licensed business”.

Earlier this year, the BMA placed restrictions on the marketing of a fund provided by EFG, which prevented the firm from conducting most forms of regulated investment business, including the provision of investment advice, accepting new funds for investment or reinvesting existing funds.

Professional services firm KPMG has been appointed to coordinate the winding-up process, on behalf of the Official Receiver, who is the Registrar of Companies.

KPMG will, as part of its responsibilities, be conducting a reconciliation of all client accounts to determine the position with respect to investor funds.

Any clients, investors or creditors with enquiries regarding the winding-up proceedings should contact Charles Thresh on emeraldinfo@kpmg.bm.

For the full story see tomorrow's Royal Gazette.