Bid to place Fedbond under a curator fails

For the past two years the Fedbond scheme has been operating under a monitorship order in terms of which the scheme was prohibited from making repayments to participants except in cases of extreme hardship. Since November 11, 2003, the scheme was, by virtue of an administrative directive issued by the Registrar, also not allowed to accept new investments. Although the court found that the scheme was non-compliant with the law in some respects, and does not comply with the definition of a collective investment scheme in participation bonds, it held that there was no basis for the appointment of curators. \'I do not hold that the interests of the participants or the public require curators to be appointed. In sum, the evidence does not show that curators will be better suited than Fedbond\'s management to manage the scheme back to compliancy,\' Judge J du Plessis concluded. Full I-Net Bridge report