The Cayman Islands Monetary Authority has revoked the full mutual fund administrators licence of Focus Administration Limited, citing insolvency and regulatory issues.
In a decision notice sent to the firm’s directors, Michelle Cullen and Barbara O’Donnell, on 13 July, the regulator said it was “satisfied” the company “is or is likely to become unable to meet its obligations as they fall due”.
In addition, CIMA said Focus Administration had contravened the Mutual Funds Law (2020 Revision) and the Anti-Money Laundering Regulations (2020 Revision) and the direction and management of the company’s mutual fund administration business was “not being conducted in a fit and proper manner”.
The regulator noted that Focus Administration had not prepared or submitted audited annual accounts for the years ending June 2018 and June 2019. The company had failed to provide evidence that it has at least $400,000 in paid-up capital to meet minimum net worth requirements. And Focus had not appointed a Money Laundering Reporting Officer and deputy.
In its email to the company, the regulator referred to an earlier decision notice, dated 25 May, in which CIMA directed the fund administrator to exit all client relationships for which it provides fund administration or registered office services.