Determined to protect the rights of investors in the wake of the Madoff affair, Luxembourg’s market regulator “La Commission de Surveillance du Secteur Financier,” or CSSF, has announced its decision to withdraw the Luxalpha hedge fund from the official list of registered funds, and to request liquidation of any remaining assets.
Citing article 94(2) of the law from December 20, 2002, the CSSF stated that Luxalpha was no longer observing local regulations governing the organisation and operation of OPC (organismes de placement collectif) registered funds. As a result of its decision, any further payments to the fund’s clients will be suspended forthwith, and any future acts prohibited.
According to the regulator, the decision of withdrawal becomes permanent after a period of one month, except in case of appeals. As soon as the decision becomes permanent, the regulator will request from the Luxembourg court the judicial liquidation of Luxalpha, whereupon a liquidator will be appointed to realise the assets of the fund.
Luxalpha is one of 17 Luxembourg-based funds identified by the regulator as having incurred losses amounting to at least EUR1.7bn in the alleged fraud run by US hedge fund manager Bernard Madoff. Madoff and his investment firm, Bernard L. Madoff Investment Securities LLC, have been charged by the United States Securities and Exchange Commission with securities fraud over a multi-billion dollar Ponzi-scheme – a scam described by the Commission as “stunning” and “of epic proportions”. Total losses are estimated at USD50bn.
A comprehensive report in our Intelligence Report series examining offshore investment, offshore stock exchanges, trusts and hedge funds is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment