Further to the Notice dated 3 March 2020 and subsequent updates, the Cayman Islands Monetary Authority (“CIMA”) is advising an update to one of the frequently asked questions relating to Private Funds and the addition of a new question, both specific to Alternative Investment Vehicles (AIVs).
A Cayman AIV that meets the definition of a Private Fund will be required to register under the PFL as a stand-alone Private Fund.
A Private Fund, irrespective of being an AIV in a structure falling under a non-Cayman main fund, is subject to section 13(1) of the PFL, which requires the Private Fund to have its accounts audited annually by an auditor approved by CIMA. The Private Fund is also required to submit its audited accounts, along with the Fund Annual Return (“FAR”), to CIMA within six months of the end of each financial year.
The Private fund is able to satisfy its obligation pursuant to section 13(1) of the PFL in one of the following ways:
For a Private Fund that is an AIV in a structure that includes other Cayman AIVs, which have been individually registered as private funds, the following options are also available to satisfy the Private Fund’s obligation pursuant to section 13(1) of the PFL:
In respect of option 2 above, there are no regulatory obligations under the PFL for the non-Cayman main fund or any other non-Cayman entities that are included in the consolidated financial statements submitted, but which are not subject to CIMA’s regulatory oversight.
A full list of frequently asked questions in reference to the new funds laws can be found here under the sub-heading ‘Private Funds Law 2020’ and/or ‘Mutual Funds (Amendments) Law 2020’, respectively.