Audited Financial Statements and Fund Annual Return
The FAR Form version 3.0 (FAR-016-22-03 (T001)) and updated Completion Guide are now available as at 14 June 2016. FAR Form 3.0 is an updated version and will replace FAR Form version 2.0 (FAR-016-22-02) that was released on 5 February 2016.
Section F12.3 of FAR Form 3.0 has been updated to allow short positions of Long-term Debt Securities to be presented in a separate line as a negative amount. Various sections of the Completion Guide have also been updated to clarify the reporting requirements under those sections.
Funds with a year-end date of 15 September 2015 and later may have already filed FAR Form 2.0 with the Authority. Both FAR Form 2.0 and FAR Form 3.0 will be accepted until 01 July 2016. However, effective 02 July 2016, REEFS will no longer accept FAR Form 2.0 and funds should instead complete FAR Form 3.0 for filings in the Regulatory Enhanced Electronic Forms Submission (“REEFS”) reporting portal https://reefs.cimaconnect.com.
For funds with a financial year end of 31 December 2014 or later, but prior to 15 September 2015, the previous FAR Form issued on 25 May 2015 should still be used. For funds with a financial year end prior to 31 December 2014, the old FAR Form and E-Reporting Portal will continue to be used.
All four versions of the FAR forms are available on the website at the following link - Investment Fund Forms.
If you require further information regarding FAR filings, please contact the Investments and Securities Division by email at firstname.lastname@example.org.
All funds regulated under the Cayman Islands’ Mutual Funds Law must submit, to CIMA, the following documents covering the fund’s financial year, within six months of the fund’s financial year-end:
These documents must be submitted electronically through CIMA’s electronic reporting (E-reporting or REEFS) system explained below.
In certain circumstances, fund operators may apply to CIMA for a waiver/exemption of the filing requirement or for an extension of the deadline by which the documents must be filed with CIMA.
Requests for waivers/exemptions or extensions must be submitted, in writing, to CIMA via email or post. The email address for submitting requests is: email@example.com.
CIMA will review the request for an extension, in line with its ‘Procedure for the Granting of Extensions for the Filing of Supervisory Reports’ (See Regulatory Handbook Appendices, section F11) and for a waiver/exemption, in line with the Audit Waiver Policy. In relation to audit waivers for funds that are terminating, CIMA will make a determination as to whether an affidavit, liquidators report or procedures will suffice in place of the audit. CIMA will inform the operator of its decision in writing.
As of 13 December 2012, CIMA charges a non-refundable administrative fee for each waiver/exemption or extension request. Click on Investment Funds Fees for further information in order to be directed to the current Fee Schedule, which lists all fees that CIMA collects, including ‘Mutual Funds’ fees and ‘CIMA Administrative Fees’.
To make it easier for fund operators to meet the annual return submission requirements, CIMA implemented the Fund Annual Return (FAR) form that operators fill out, as well as electronic reporting systems through which the FAR and audited annual financial statements are submitted. There are two systems running concurrently at present, the old system, E-Reporting and the new system, Regulatory Enhanced Electronic Forms Submission (REEFS).
The FAR is an electronic form (in Microsoft Excel) that fund operators must use to provide CIMA with general, operating and financial information about the fund. This electronic document must be completed and filed for every regulated fund. Effective 30 January 2013 and pursuant to The Mutual Funds (Annual Returns) (Amendment) Regulations there is a fee to file a FAR, which becomes due at the time the FAR is submitted. Please refer to the Advisory for further details regarding the FAR fee.
Click the following link to access the FARs.
Who Completes and Files the FAR
The fund operator is responsible for ensuring the FAR is filled out.
The local auditor for each fund (CIMA-approved Cayman Islands audit firms) is responsible for submitting the FAR to CIMA, through either the E-reporting or REEFS systems, depending on the fund’s year end.
The following documents provide guidance:
Click on the link above to view the current Reporting Schedule for Prudential and Statistical Returns for all CIMA-regulated entities.
Other Data Collection
The Coordinated Portfolio Investment Survey (Form CPIS) collects information on investment holdings, by banks and mutual funds domiciled in the Cayman Islands, in equity, short-term debt and long-term debt securities issued by unrelated non-residents as at 31 December 2004. The Cayman Islands Monetary Authority is conducting this survey in coordination with the International Monetary Fund (IMF) to facilitate international data comparability. The information provided will remain fully confidential to the Monetary Authority, only aggregated details will be submitted to the IMF. Cayman’s participation in the CPIS will contribute to an improved understanding of Cayman’s international financial centre and its impact on global financial intermediation. It will enable the Cayman Islands to emphasize its positive role in facilitating the free flow of cross-border investments.