The MFSA decided to proceed with the cancellation of the Collective Investment Scheme Licence of the Scheme, including the Licence granted to its remaining five Sub-Funds, namely Sub-Fund A - Global Managed Futures, Sub-Fund B - Equity Hedged, Sub-Fund C - High Leverage Managed Futures, Sub-Fund I - Properties Preferred and Sub-Fund P - Fixed Yield.
Business Activity: Collective Investment Schemes Licence Holders – Professional Investor Funds
BREACHES
The Scheme was found to be in breach of the following Standard Licence Conditions (“SLC”) of Part BII of the Investment Services Rules for Professional Investor Funds (“the Rules”) and Appendix I to Part B of the Investment Services Rules for Professional Investor Funds:
[i] SLC 1.23 and SLC 1.29 of the Rules - Failure to have an appointed Compliance Officer and MLRO
[ii] SLC 1.62 of the Rules - Failure to submit the Audited financial statements from 31 December 2011 to 31 December 2018
[iii] SLC 1.70 of the Rules - No reporting of material information to the MFSA
[iv] SLC 1.74 of the Rules – Inadequate record-keeping to enable the Scheme to comply with the conditions stipulated in the Rules and to demonstrate that compliance has been achieved
[v] SLC 1.8 and SLC 1.10 of the Rules – Inadequate administration agreement
[vi] SLC 2.2 of Appendix I to Part B of the Investment Services Rules for Professional Investor Funds - Failure to have an appointed Director who is independent from the Manager and Custodian
REGULATORY ACTION
On 19 May 2020, the Malta Financial Services Authority cancelled, on regulatory grounds, the Collective Investment Scheme Licence of Brightwell Portfolio Fund SICAV plc. including the Licence granted to its remaining five Sub-Funds, namely Sub-Fund A - Global Managed Futures, Sub-Fund B - Equity Hedged, Sub-Fund C - High Leverage Managed Futures, Sub-Fund I - Properties Preferred and Sub-Fund P - Fixed Yield.
The Authority has taken this decision in terms of the powers under Article 7(3)(b) and (d) of the Investment Services Act.
PUBLICATION
This notice is being published as part of the Authority’s standard enforcement policy and in terms of Article 25(1) of the Investment Services Act and Article 16(8) of the Malta Financial Services Authority Act.
UPDATE ON 19 JUNE 2020
The Authority’s decision was not appealed before the Financial Services Tribunal within the period established by law.
