The EEA Life Settlements Fund has suspended dealings, after receiving "unprecedented" levels of redemption requests from advisers and institutional investors.
In a note posted on the Channel Islands Stock Exchange last night, the board announced with immediate effect: "the suspension ...of each class of participating redeemable preference... and of the issue, sale, purchase, redemption, conversion and dealings of shares of each such class".
Monday's announcement the FSA would be investigating traded life settlement policies has led to cancelled subscriptions and redemption requests significantly above normal redemption levels, the note read.
A spokesperson for EEA said 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".
The board will write to shareholders to provide further information, and will make further announcements as and when appropriate, he added.
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