IRELAND – The Irish financial watchdog has ordered Dublin-domiciled hedge fund group Broadstone Fund Management to cease due to “serious regulatory issues”.
A spokesman for the Irish Financial Services Regulatory Authority told IPE it ordered the group – which operates three hedge funds on the Irish Stock Exchange - “to cease providing investment business and investment advice” on Monday.
He declined to be more specific but said the action was not related to the “integrity of client assets”.
The watchdog yesterday approved the acquisition of another fund group owned by Broadstone, Harvest Global Asset Management, by the management. A similar order on Harvest was then revoked.
According to a report in the Irish Times, Broadstone manages some €15m while Harvest runs €150m in pension and investment funds.
Broadstone Fund Management is a subsidiary of Broadstone Capital Group Ltd.
This company manages funds for Irish Life, a division of Irish Life & Permanent, and New Ireland, the Bank of Ireland subsidiary, the report added.
Broadstone’s three funds are Avenir, Mespil and 4XiM CMP.
Broadstone founder and chief investment officer Gerry O'Neill was quoted as saying the regulator’s move arose from "an investment into the company that was not realised" late last year.