Maxam Absolute Return Fund Limited
Suzanne S. Hammond
Director
Maxam Absolute Return Fund Limited
Dear Ms. Hammond,
Re: Warning Notice — Maxam Absolute Return Fund Limited (Reg. #11505) ("the Fund")
We write to you in your capacity as Director of the Fund.
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 The Cayman Islands Monetary Authority ("the Authority") for the years ended 31 December 2008 to December 2017;
- Section 9 of the Law for failing to pay its annual registration fee and penalties for the years 2016 to 2019; and
- Section 50 of the Companies Law (2018 Revision) for failing to have a registered office.
Furthermore, you are in breach of the Directors Registration and Licensing Law (2014 Revision) ("the DRLL") for failing to register or seek a licence pursuant to the DRLL.
The Authority has made reasonable efforts to locate and correspond with the director of the Fund, but to date has been unsuccessful. The Authority is therefore posting this notice publicly in an effort to give notice to all interested parties.
The Authority also gives notice that the lack of communication may be considered in assessing your fitness and propriety to act as an authorised person in connection with other existing regulated mutual funds and/or licensees, or in future applications where fitness and propriety will be assessed.
Pursuant to provisions in section 30 (1) of the Law, the Authority may take all or any of the actions in subsection (3), if it is satisfied inter alia that:
- A regulated mutual fund is or is likely to become unable to meet its obligations as they fall due; and
- The direction and management of a regulated mutual fund, has not been conducted in a fit and proper manner.
TAKE NOTICE:
The Cayman Islands Monetary Authority of 80 Shedden Road, Elizabethan Square, P.O. Box 10052, Grand Cayman KY1-1001, Cayman Islands, proposes to take the following action.
PROPOSED ACTION:
The Authority proposes to cancel the Fund's mutual fund registration pursuant to section 30 (3) (a) of the Mutual Funds Law (2015 Revision).
REASONS:
Having considered the breaches of the Law, and the length of time that the Fund has remained non-compliant, the Authority can rely on this as sufficient to satisfy itself 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.
NOTICE OF REPRESENTATION:
You may make written representations to the Authority. If you wish to make such representations you must do so within 30 days of receiving this Warning Notice, or such longer period as requested of, and approved by the Authority. Where an extension to this time is required, a request for an extension must be submitted within 10 days of receiving the Notice. Written representations should be made to the Managing Director of the Authority, at the above address.
Please contact Audrey Roe, Head of Compliance at a.roe@cimoney.com.ky at the Authority for more information.
Yours sincerely,
Cindy Scotland
Managing Director
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