The Cayman Islands Monetary Authority (the “Authority”) continuously reviews the files of all Regulated Mutual Funds (“Funds”) that have been placed into LUL or LUT status.
For those Funds that remain in LUL or LUT status for more than six months, the Authority will contact the Fund via its Registered or Principal Office in an effort to collect the remaining documents and/or fees that are outstanding from the Fund. Extensions will be granted by the Authority where warranted. For those Funds that do not provide the information within such period as agreed with or stipulated by the Authority, the Authority will cancel the Certificate of Registration or Mutual Fund Licence pursuant to section 30(16) of the MFL as an administrative action.
For Funds that are in LUT or LUL, the Authority requires that the operators or Liquidators of the Fund provide comprehensive ongoing updates as to the status and progress of the winding down or liquidation of the Fund during this six month period. Failure to do so will result in the Authority cancelling the Certificate of Registration or Mutual Fund Licence pursuant to section 30(16) of the MFL as an administrative action.
Where the Authority determines that a Fund in LUL or LUT is the subject of wrongdoing, or circumstances give rise to questions about the fitness and propriety of a service provider or operator, the Authority will also consider whether it is appropriate to take action under the relevant regulatory law.
Where a Mutual Fund Licence or Certificate of Registration has been canceled as an administrative action under this procedure, the Authority may take this into consideration when assessing the fitness and propriety of the Fund’s operators.
If you require further information regarding the above, please contact the Investments and Securities Division by email at email@example.com.
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