Castlestone has released a new statement emphasising the FSA's ongoing investigation into the firm does not relate to any criminal activity.
The group said the regulator's inquiry is of a "purely regulatory nature" and reiterated it is co-operating with the investigation.
"FSA confidentiality prevents Castlestone from providing specific details of the FSA's concerns," it said, adding "the FSA investigation is not into criminal offences."
The firm said it attended a meeting with the FSA today at which it provided all the information the regulator had requested, although it did not give any further details on the nature of the FSA's request.
Castlestone added it wanted to reassure investors it "remains financially sound and continues to operate as normal in the interests of investors", adding it will provide transparent financial statements to existing clients on request.
The latest statement comes as a major platforms Nucleus, Skandia, and Cofunds suspended new investments into Castlestone funds pending the outcome of the FSA's investigation.
Yesterday the group released a statement saying no action has been taken against it by the regulator and its funds are unaffected.
“The purpose of the [FSA's] visit was to obtain data the regulator feels may be relevant to that investigation. Castlestone continues to be fully cooperative with the FSA team," the firm said.
“From today, Castlestone continues to operate as normal. The FSA visit has had no effect on either the funds managed by Castlestone domiciled in the British Virgin Islands or the UCITS funds domiciled in Ireland and all funds remain open for trading and will accept subscriptions and redemptions as per normal.
“The funds managed by Castlestone Management PLC have been UCITS compliant since launch and are UCITS IV compliant since this regulation came into force on 1 July 2011.
“No legal action has been taken against Castlestone Management.”
It also denied reports works of art said to be assets of the Castlestone Collection of Modern Art fund had been removed from its offices.
“Those works of art located at its offices which are the property of the Collection of Modern Art Fund, were not removed from its offices yesterday and Castlestone confirms these items forming part of the collection will remain housed there.
“The Art fund, as is true of all the Castlestone family of funds, has been unaffected by the FSA visit and remains open to accept subscriptions and redemptions.”
In May the Irish regulator suspended subscriptions on the $34.7m Aliquot Commodity (UCITS), $19.64m Aliquot Agriculture (UCITS) and $4.23m Intelligent Portfolio (IQ) Asset Allocation (UCITS) funds.
At the time of the suspension, Castlestone released a statement saying the Irish regulator wanted a higher level of disclosure under UCITS IV, and had requested a new business plan from the firm for the transition to UCITS IV.
It said: “Additional documents have been requested to satisfy a change of administrator which Castlestone has implemented in its continued effort of trying to lower the TERs of the funds.”
However, it later retracted this statement, issuing a second one after the suspension was lifted, in which the group said it “undertook to improve the reporting process and implement several other management changes including the approval of an enhanced UCITS IV business plan which was approved prior to the UCITS IV implementation deadline.”
The group now says it did not take steps to reduce the TERs on the three funds, which have been capped at 5%, but instead brought currency hedging in house in order to lower costs.
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