CIMA has implemented a new regulatory procedure (the “New Procedure”) in connection with the cancellation of a licence or certificate of registration of a Cayman Islands regulated mutual fund.
The New Procedure creates a fixed deadline for submitting an application to CIMA for the deregistration of a fund in cases where the fund intends to or has ceased carrying on business pursuant to the Mutual Funds Act (2015 Revision) (the “Mutual Funds Act”). The New Procedure requires an application to be made on the earlier of (i) 21 days from the date the fund ceases to carry on business; or (ii) before 31 December of the year the fund ceases to carry on business.
For these purposes a fund "ceases to carry on business" on the date stated in the resolution of the operators where it is resolved that the fund will cease or has ceased to carry on business as a fund in or from the Cayman Islands, unless CIMA has reason to believe that the relevant date is other than that indicated in such resolutions. Should a liquidator be appointed to a fund, CIMA will deem the fund to have ceased to carry on business on the date of such appointment.
It will no longer be possible, to request an audit waiver after 1 October 2015 on the grounds that the fund has ceased carrying on business.