In a statement issued yesterday, Castlestone Management Ltd confirmed the 20th July FSA visit to its premises, as part of a regulatory investigation. It said: "The purpose of the visit was to obtain data that the regulator feels may be relevant to that investigation. Castlestone continues to be fully cooperative with the FSA team.”
It went on to add: “Castlestone continues to operate as normal. The FSA visit has had no effect on either the funds managed by Castlestone domiciled in the British Virgin Islands or the Ucits funds domiciled in Ireland and all funds remain open for trading and will accept subscriptions and redemptions as per normal.”
The important concluding phrase is: “No legal action has been taken against Castlestone Management Ltd.”
Castlestone Management Ltd is the FSA-regulated manager and distributor of the group’s four Ucits funds, which are domiciled in Ireland but distributed in the UK. It also provides the management and distribution advice for the group’s BVI-domiciled funds.
The fund managers registered and operating in the UK and distribution of the Ucits portfolios fall under the remit of the FSA. However, the funds themselves do not.
Castlestone Management EU Ltd, regulated by the Central Bank of Ireland, is the Authorised Corporate Director of the Ucits portfolios. It has two board directors, Angus Murray and Mark Carter, alongside two non-executive directors, Anne-Marie Galvin and Teddy Otto.
Castlestone Management EU is the investment manager of Castlestone Management plc, which in turn owns and operates the funds. Again it is regulated in Ireland and not by the FSA.
The upshot is the FSA has no jurisdiction over the Dublin-domiciled portfolios themselves, the Irish Regulator does.