Cayman Funds not affected by Madoff Affair
The Cayman Islands Monetary Authority (CIMA) has made an announcement that the Cayman funds industry remains largely not affected by a recent event that has sent further unwelcome ripples around the global financial system – the collapse of hedge funds controlled by Bernard L. Madoff.
According to CIMA’s statement, it has been following the developments connected with charges of massive investment fraud brought in the United States against investment broker and former Nasdaq Stock Exchange Chairman Bernard Madoff. After checking its records and database, the Authority claimed that it has found no evidence that Mr Bernard Madoff or any his company is providing direct services to any Cayman-regulated fund. Investigating the Cayman Companies Registry found that no Madoff-related entity was incorporated in the jurisdiction.
Still, the Cayman Islands Monetary Authority suggests that there could be a number of Cayman-regulated funds and other institutions that have made investments into the Madoff funds and which could be impacted.
CIMA will cooperate with the Securities and Exchange Commission (SEC) – the main United States’ financial regulator, to investigate Madoff and his funds.
Currently, Madoff is under house arrest in the USA after being charged of running the largest Ponzi scheme in history. The fraud could run as much as USD 50 billion.