Waystone Fund Management Limited

the Central Bank has decided that it is appropriate to impose the following sanctions:  A reprimand, and  A monetary penalty of €562,160 with the application of a 30% settlement scheme discount bringing the amount to €393,512. 1 Section 33AR(1)(a)(ii) of the 1942 Act: “where there are undisputed facts that in the reasonable opinion of the Bank render an investigation unnecessary, suspects on reasonable grounds that a person is committing or has committed a prescribed contravention…” 2 1.3. WFM has agreed to these sanctions,2 however they will not take effect unless confirmed by the High Court.3 1.4. Further detail on the contraventions and sanctions are set out in Parts 3 and 4 of this Settlement Notice. Summary of Reasons for the Central Bank’s Action 1.5. WFM is authorised as an alternative investment fund manager (AIFM) and is subject to the requirements of the 2013 AIFM Regulations.4 Investor protection is a core objective of those Regulations, which prescribe various requirements aimed at safeguarding investors. 1.6. WFM delegated its investment management functions to a third party investment manager (the Investment Manager). The delegation of certain investment management functions is common in the global funds sector but importantly, the AIFM retains ultimate responsibility and is required under law to ensure proper oversight and control of any delegates.5 1.7. The matters that form the background to the Central Bank’s action relate to an alternative investment fund (AIF)6 (the Fund) for which WFM was the AIFM. The Fund targeted qualifying, informed investors and had a minimum subscription of €100,000 (or its foreign currency equivalent).