The CFA Institute has informed Cobus Kellermann that it has closed its investigation into his conduct. It has also told him that it will be taking no disciplinary action against him.
The Institute, which is has its headquarters in the USA, sets professional standards for investment managers and is the custodian of the Certified Financial Analyst (CFA) designation.
Its investigation into Kellermann began in March 2015 when allegations of fraud were made against Belvedere Management and related companies. Kellermann and David Cosgrove were equal partners of Stonewood Holdings, which was the controlling shareholder of Belvedere and a number of other financial services companies in Mauritius and Guernsey.
Kellermann was also alleged to have mishandled the Strategic Growth Fund during his time as portfolio manager. The fund was suspended in 2013 as it did not have sufficient liquid assets to meet redemptions.
Financial regulators in Guernsey, Mauritius and South Africa were all involved in the matter. However, earlier this year the Guernsey Financial Services Commission ended its investigation and noted that it would be taking no action against Kellermann or Cosgrove.
After more than two years, the CFA Institute has now concluded its process as well. In a letter addressed to Kellermann earlier this month, the organisation’s head of compliance and enforcement, Jeffrey K Stith wrote:
“After a careful review of the information available to us, Professional Conduct has decided to close its investigation and take no disciplinary action. We reserve the right to reopen the matter if we learn of any new or different information in the future.”
In documents seen by Moneyweb, the CFA Institute had requested extensive information from Kellermann relating to a number of companies and funds linked either to him or Stonewood Holdings. These included businesses in Guernsey, Mauritius and South Africa.
Their interest covered Belvedere Management, Four Elements PCC, Lancelot Global PCC, The Two Seasons PCC, RDL Management, Lancelot Management and United Asset Management, which was the investment advisor to the Strategic Growth Fund.
Moneyweb requested further detail from the CFA regarding the investigation and the decision to end it. However it refused to disclose any details.
Brett Ferguson, an investigator for compliance and enforcement would only say: “Our confidentiality policy prevents us from commenting on matters unless and until a public sanction has been imposed.”