SETTLEMENTS FUND PCC LIMITED
protected cell company incorporated in Guernsey
with registration number 43302)
NOTIFICATION - SUSPENSION OF DEALINGS
5 December 2011
Following a meeting on 30 November
2011 of the Board of Directors (the Board) of EEA Life
Settlements Fund PCC Limited (the Fund), the Board has declared
an immediate suspension of the valuation of the net asset value of all
classes of participating shares in each cell of the Fund and of the
issue, sale, purchase, redemption and conversion of shares of each
such class, which the Board is entitled to do in accordance with the
Fund’s articles of incorporation and offering memorandum.
As a result of this decision, (i) all
applications for shares received in respect of the
1 December 2011 dealing day will be rejected and application monies will
be returned to prospective investors, (ii) no redemptions will be made
during the period of suspension, including in relation to those
requests for the redemption of shares in respect of the 1 December
2011 dealing day, and (iii) no distributions will be made in relation
to any cell during the period of suspension.
The Fund maintains levels of liquidity
which the Board considers prudent for normal operational purposes
including payments of premiums on policies. The UK Financial Services
Authority (FSA) draft guidance on Traded Life Policy Investments
issued on 28 November 2011 has led to cancelled subscriptions and
redemption requests significantly above normal redemption levels. As
the current liquidity levels of the Fund are insufficient to satisfy
such redemption requests in full and the Board has determined that it
is not reasonably practicable to realise or dispose of its investments
to satisfy such requests, the Board has decided to suspend dealings.
The Board will keep shareholders
updated and will resume dealings as soon as it considers it prudent to
do so. Shareholders
should be assured that the suspension of dealings will in no way
affect the ability of the Fund to pay premiums on insurance policies
in the usual manner.
Board also wishes to notify shareholders that on 2 December the
Manager closed out the Fund's existing hedging arrangements.
was as a result of discussions between the hedging counterparty and
the Manager following the Fund's decision to suspend dealings on 30
the circumstances the Manager concluded that it was prudent and in the
best interests of the Fund and its shareholders to close out the
Manager is considering alternative arrangements and the Board will
keep shareholders updated. In
the meantime, shareholders investing in cells other than US$
denominated cells should be aware of the associated risk and are urged
to discuss matters with their financial advisor.
information will be provided to investors regarding this suspension as
it becomes available and will be published on the Manager's website
you have any questions or concerns please call your independent
financial adviser or your usual EEA representative.