BMA revokes registration of Vesttoo fund
The Bermuda Monetary Authority has revoked the registration of Vesttoo Alpha P&C Fund, which was set up to raise collateral for Vesttoo Alpha P&C (Vesttoo CI).
Vesttoo CI was put into liquidation on the application of the BMA earlier this year in the wake of the Vesttoo scandal in which it is alleged senior managers of the company arranged to have letters of credits forged to show there was funding for billions of dollars worth of insurance-linked securities.
The BMA said the Vesttoo fund was registered in 2022 to raise collateral to be used to fully collateralize insurance exposure underwritten by Vesttoo Alpha P&C Ltd (Vesttoo CI).
The regulator said: “The Authority commenced proceedings against Vesttoo CI in the Supreme Court of Bermuda on 1 August 2023 by filing a winding up petition under the provisions of section 35 of the Insurance Act and a summons seeking the appointment of joint provisional liquidators (JPLs).
“On August 2, 2023, the Supreme Court appointed Charles Thresh and Mike Morrison of Teneo (Bermuda) Ltd to act of the JPLs of Vesttoo CI. The Supreme Court issued a Winding Up Order on 13 October 2023.
“In light of the appointment of JPLs and the issuance of a winding up order with respect to Vesttoo CI and the resultant restrictions preventing Vesttoo CI from writing any business, the investment objectives for which the Vesttoo Fund was specifically established cannot be achieved. Accordingly, the Vesttoo Fund’s registration under the Act has been revoked.”
The BMA also said further grounds for revocation included failing to appoint a fund administrator and failing to provide certain required notices in accordance with legislation.
The BMA noted that the fund did not appeal the decision.
