Fund manager Axel Merk resigned as chief operating officer of closed-end precious metals fund ASA Gold and Precious Metals Ltd. on Wednesday, effective immediately, according to a GlobeNewswire release from Palo Alto, California.
The resignation does not affect his role as president and chief investment officer of Merk Investments LLC, which manages ASA under an advisory agreement extended through June 30, 2026.
Merk had served as a Sarbanes-Oxley certifying officer since March 2019, bearing personal responsibility for the fund’s internal controls over financial reporting. He said he had never received compensation for the role.
In his resignation letter, Merk said the board had excluded SOX certifying officers from meetings on matters affecting the fund’s control environment. He also said no transition plan had been communicated to him.
“This poses unacceptable risks to the control environment,” Merk said in the letter.
Merk said the adviser still performs valuation and regulatory reporting work under Rule 2a-5, and fewer than 20 days remain to hand those functions over.
Merk’s letter described broad organizational churn over the past year, including director turnover, departing service providers, the principal financial officer’s expected retirement this summer, and the fund secretary’s upcoming paternity leave.
ASA’s board extended the Merk Investments advisory agreement for 90 days on March 31 and engaged Cantor Fitzgerald to assist a special committee reviewing the fund.
