Click here to view CIMA's Current List of Approved Local Auditors.
Under the Mutual Funds Law (2013 Revision), a regulated mutual fund must have its accounts audited annually by an approved auditor. The Authority has implemented a policy requiring local auditor sign-off of annual audit reports of mutual funds and mutual fund administrators incorporated or established locally. Click the link to view: Local Audit Sign-off Policy.
An auditor's letter of consent indicates acceptance of appointment as auditor, the name of the fund, date of financial statements and what accounting principles will be used. It also contains a statement confirming that the auditor(s) is/are aware of and agree to fulfil their obligations pursuant to section 34 of the Mutual Funds Law (2013 Revision).
The fee required per audit extension request is CI$500.00 / US$609.76. The extension request fee is applicable to each filing. In relation to Segregated Portfolio Companies (“SPC”) which intend to file extension requests on behalf of their Segregated Portfolios (“SPs”), the application fee mentioned above is required for each individual SP applying for an extension. This applies to SPs that are filing individual audited financial statements. However, if the SPC files consolidated financial statements and wishes to apply for an extension, then only one fee will be required as only one filing will be made.
Under certain circumstances, mutual funds are able to receive an extension to the filing deadline for their audited accounts. Such extensions are granted on a monthly basis, up to a maximum of three (3) months. Any service provider on record for the fund may submit a written request for a filing extension. Requests via email should be sent to email@example.com. The request must clearly state the reason for the request, and must specify the financial year affected. All requests for extensions beyond the first month must be accompanied by a letter from the fund’s auditor explaining the reason for the delay.
As per Section 4.3 of the Regulatory Exemption from Audit Requirement for a Regulated Mutual Fund; “The Authority may consider extending the fund’s first audit period for a maximum of 18 months from the date of registration. Consideration may also be given to extending the fund’s last audit period for a maximum of 18 months from the date of the last financial year end for which an audit has been filed.”
As per section 4.5 of the Regulatory Exemption from Audit Requirement for a Regulated Mutual Fund; “If a fund applies for an exemption for two consecutive years, the Authority may ask for additional information from the fund’s operator or administrator about the reasons for the fund’s inability to produce audited accounts.”
The Audit waiver application fee is CI$500.00 / US$609.76.
Documentation required to submit are outlined in Section 5 of the Regulatory Exemption from Audit Requirement for a Regulated Mutual Fund.
Please review Section 4(4) of the Regulatory Exemption from Audit Requirement for a Regulated Mutual Fund.
A fund in LUL status will not accrue annual fees or penalties.
LUL status is given to a fund upon receipt of the core documentation required to terminate (Original certificate of Registration, Cancellation fee and the Directors resolutions to terminate) along with the Notice of the winding up of the Fund (CWR Form No. 19) and Voluntary liquidator's consent to act (CWR Form No. 20).
A fund in LUT status will have its annual fee reduced to half the fee. Penalties are accrued at half the annual fee.
Once a Fund submits the core documentation required to terminate (Original certificate of Registration, Cancellation fee and the Directors resolutions to terminate) it is placed in LUT status until the remaining termination items are received. Upon receipt of the requisite items the Fund is then terminated.
There is a termination fee of CI$600.00 / US$731.71.
The Authority has issued the Rule and Regulatory Procedures on Cancellation of Licences issued pursuant to Section 5 and Certificates of Registration issued pursuant to Sections 4(3) and 4(1)(b) of the Mutual Funds Law (the "Rule and Procedures") on the procedures and documentation required for the cancellation of mutual fund licences and certificates of registration.
An updated OM or Supplement is required to be submitted to the Authority when there has been any change that materially affects the information in the OM. The updated OM or Supplement is required to be file electronically through firstname.lastname@example.org within twenty-one (21) days of the change. These include changes to:
? The investment objectives and strategies
? Investment managers/advisors
? Investment risks
? Service providers
? Registered office
? Change of name.
The administrative fee required when submitting an updated OM is CI$100.00 / US$121.95.
An updated MF Form should be submitted electronically through email@example.com whenever two or more material changes are made. The administrative fee required when submitting the updated MF Form is CI$300.00 / US$365.85.
Please click on: Investment Fund Forms.
Documentation required when changing or adding:
An electronic copy of the revised/new offering document or supplement is required to add a sub-fund. This can be submitted to the Authority by sending an email to firstname.lastname@example.org. Also, to process this request, the prescribed fee, as per our Fee Schedule, must be submitted to the Authority.
In order for a fund to change its name, the following documents are required:
the original Certificate of Registration/Licence for cancellation;
a certified copy of the Certificate of Incorporation on Change of Name obtained from the Registrar of Companies;
the prescribed fee as per our Fee Schedule
Funds registered/licensed by way of continuation will need to file the prescribed details as well as audited accounts for the past two years, if available.
For those funds registering pursuant to Section 4(3) of the Mutual Funds Law, the Authority also requires an affidavit from the operators of the fund attesting that all current investors meet the US$100,000 minimum investment criterion as required pursuant to Section 4(3) of the Mutual Funds Law.
It should also be noted that the regulators from the jurisdiction from which the fund is being transferred are contacted prior to fund being registered/licensed, to confirm that:
?The fund was in good standing during the period that it was subject to regulation; and
?There were no adverse issues regarding the fund or its operators that the Authority should be made aware of.
What documents are required for an existing regulated fund wishing to re-register/licence pursuant to a different section of the Mutual Funds Law.
The Authority requires the following for an existing regulated fund wishing to re-register/licence pursuant to a different section of the Mutual Funds Law:
?Return of the original Certificate/Licence;
?Completed MF Form; and
?Updated Offering Document (if applicable).
In addition to the above, funds re-registering pursuant to Section 4(3) of the Mutual Funds Law will also require an affidavit from the operators of the fund attesting that all current investors meet the US$100,000 minimum investment criterion as required pursuant to Section 4(3) of the Mutual Funds Law.
For a mutual fund that is a Company it is required by the Authority to have a minimum of two (2) Operators, registered pursuant to the Directors Registration and Licensing Law, 2014, during the life of the fund.
It takes approximately five business days to register a mutual fund and four to six weeks to license a fund once all documentation has been received.
A mutual fund shall pay the prescribed annual fee on or before the 15th of January in each year.
The annual fee for a Master fund is CI$2,500.00 / US$3,048.78
The annual fee for a mutual fund is CI$3,500.00 / US$4,268.29
The registration fee for a Master fund is CI$2,800.00 / US$3,414.63
The registration fee for a mutual fund is CI$3,800.00 / US$4,634.15
The documentation required for the registration/licensing of a mutual fund is outlined on the applicable MF Form located under Investment Fund Forms - Application Forms. For a Registered Fund under Section 4(3), use the MF1 Form; for an Administered Fund under Section 4(1)(b), use the MF2 Form, and for a Licensed Fund under Section 4(1)(a), use the MF3 Form. Additionally, as per the Mutual Funds (Amendment) Law, 2011, for a Master Fund under Section 4(3)(a)(iii), use the MF4 Form.
Applications are submitted electronically though the Authority’s secured CIMAConnect web portal, which is only accessible by authorized service providers.
Documentation required to add a director:
In determining whether a person is "fit and proper" the Authority will consider a person's: - (a) honesty, integrity and reputation; (b) competence and capability, and (c) financial soundness. The Authority has issued guidance on this matter. To access these, click on the link: Investment Services Index of Measures.
A “sub-fund” includes a segregated portfolio within a segregated portfolio company structure; a sub-trust within an umbrella or master unit trust structure; and a class of shares, or units or interests within a fund, trust or partnership structure, where each such class represents a separate standalone reporting entity (eg. a fund with multiple portfolios, where each portfolio is individually presented with separate assets, liabilities, income and expenses).
A request for a refund must be submitted in a formal letter addressed to the Finance Department of the Cayman Islands Monetary Authority.
All fees are quoted in Cayman Islands Dollars (CI$). The conversion rate to be used for payment in United States (US$) is 0.82 (US$1.00 = CI$0.82).
The Authority accepts cheques made payable to “Cayman Islands Government” and wire transfers.
The Mutual Funds Law (2013 Revision) is available on our website for informational purposes only. A hard copy can be purchased from the Cayman Islands Legislative Assembly.
Please refer to the Mutual Fund Administrators Licence (Applications) Regulations 2001.
An authorised agents is one who:
An “Operator”, in respect of a mutual fund, means-
? (a) where the mutual fund is a unit trust, a trustee of that trust;
? (b) where the mutual fund is a partnership, a general partner in that partnership; or
? (c) where the mutual fund is a company, a director of that company.
A principal office is the office of the fund maintained by a licensed Mutual Fund Administrator. It performs the administrative functions of the fund, including the calculation of the net asset value (NAV) and the subscription/redemption of shares. Other responsibilities include maintaining the fund's corporate and financial records, communicating with investors as well as acting as a liaison between the fund and the Authority.
A registered office is the office of the fund and performs the usual corporate, secretarial and related functions for the fund, including paying fees and filing annual accounts.
The Authority does not regulate close-ended funds. However, in order to conduct business in the Cayman Islands, such a fund must be incorporated/registered with the Registrar of Companies either as a locally incorporated entity or a foreign entity. In addition, the Registered Office must be provided by a regulated service provider and therefore the Authority has indirect supervision.
As defined by the Mutual Funds Law, a regulated feeder fund is a regulated mutual fund that conducts more than 51% of its investing through another mutual fund.
As defined by the Mutual Funds Law, an exempted mutual fund is a mutual fund in which the equity interests are held by not more than fifteen investors, the majority of whom are capable of appointing or removing the operator of the fund.
Although the definition of a closed-ended fund is subjective, generally speaking, it is a fund that has no regular redemption date, redemptions in limited circumstances or extensive lock-up periods. As the Mutual Funds Law does not currently define closed-ended funds, the Investments & Securities Division encourages industry discussion on this matter where the operator is unsure of the need to register/licence the fund.
An Administered Fund must have a licensed mutual fund administrator providing its principal office in the Cayman Islands.
A Registered Fund must have either a minimum aggregate equity interest of CI$80,000 (US$100,000) purchasable by a prospective investor or the equity interests must be listed on a stock exchange approved by the Authority. Further information on approved stock exchanges is available in Appendix G12 of CIMA's Regulatory Handbook Appendices. (Click on link to access.)
A Master Fund is a mutual fund that is incorporated or established in the Islands that holds investments and conducts trading activities and has one or more regulated feeder funds.
A Licensed Fund must have either a registered office in the Islands or, if a unit trust, a trust company licensed under the Banks and Trust Companies Law
as its trustee.
As defined by the Mutual Funds Law, a mutual fund is "any company, trust or partnership either incorporated or established in the Cayman Islands, or if outside the Cayman Islands, managed from the Cayman Islands, which issues equity interests redeemable at the option of the investor, the purpose of which is the pooling of investors' funds with the aim of spreading investment risk and enabling investors to receive profits or gains from investments."
There are four types of mutual funds that are regulated under the Mutual Funds Law: a Registered Fund under Section 4(3); a Master Fund under Section 4(3)(a)(iii); an Administered Fund under Section 4(1)(b); and a Licensed Fund under Section 4(1)(a).
Mutual fund administration means the management, including control of all, or substantially all, the assets of a mutual fund, or the administration of a mutual fund, or the provision of the principal office of the mutual fund in the Cayman Islands, or the provision of the operator to a fund.
The information and particulars to be contained in an application for a Mutual Fund Administrator's licence are contained in the Mutual Fund Administrators Licence (Applications) Regulations 2001.
A list of mutual fund administrators licensed by the Cayman Islands Monetary Authority may be viewed on the Investment Funds Statistics and Regulated Entities page of this website. The list is updated quarterly.
It takes approximately 6-8 weeks to obtain a Mutual Fund Administrator's Licence.
Yes. Where a licensed mutual fund administrator is a company, the company shall not issue shares, and a person owning or having an interest in shares in the company shall not transfer, dispose of or deal with those shares or interest, unless CIMA has given permission.
Only those companies that are traded on a recognised stock exchange can be exempt from the requirement to obtain CIMA's permission. Such companies must, however, notify the Monetary Authority of the changes in control, and the transfer of more than 10% of shares.
An administrator's letter of consent is one that indicates acceptance of appointment as administrator, states the name of the fund and a summary of services to be provided.