The EEA Life Settlements Fund, which invests in traded life policies, was suspended in November 2011 after the Financial Conduct Authority issued draft guidance on what it termed “death bonds”.
In October, investors approved plans for a restructure of the fund which were originally annnounced in September. The restructure required a 75% majority approval from shareholders, which it received, and if granted by the GFSC, would see some investors elect to hold continuing shares or run-off shares in the fund.
However, the GFSC has now asked for further information, including audited accounts of the fund for the 2012 financial year, before it will consider providing the necessary approvals to enable the restructuring.
A statement released on the Channel Island Stock Exchange website said: “The Guernsey Financial Services Commission has now indicated that it requires further information, including the receipt of audited accounts of the fund for the 2012 financial year, before it will consider providing the necessary approvals to enable the restructuring to become effective.
“Investors will be aware that the 2012 audited accounts are overdue because of the delay in finalising the 2011 audited accounts.
“The new auditors were appointed on 29 August 2013 and, with the assistance of the board of directors of the fund, are proceeding with the audit of the 2012 accounts. The board and the Fund's investment manager will work with the commission to provide this information as soon as possible, and will update shareholders on progress in due course.”
