The Cayman Islands Monetary Authority (“CIMA”) has updated it’s Rule on the Cancellation of Licences or Certificates of Registration for Regulated Mutual Funds and Registered Private Funds.
The Cayman Islands Monetary Authority (“CIMA”) has updated it’s Rule on the Cancellation of Licences or Certificates of Registration for Regulated Mutual Funds and Registered Private Funds regarding their deregistration with CIMA at the end of the life of the fund or where their regulatory status has changed (in certain limited circumstances).
The main amendments to the updated deregistration procedures relate to the ‘timing’ of the deregistration process and the elimination of the option to place a fund in License under Termination (“LUT”) or License under Liquidation (“LUL”) status with CIMA.
Previously, a Fund could be placed into LUT or LUL status once the Fund had ceased trading or been placed into liquidation but before it had completed its final distributions and filed its final audit. As long as this was done on or before 31 December in any year, the Fund would benefit from either a reduction in, or complete waiver of, the CIMA annual fees for the subsequent year. The Fund would then have a period to complete its final audit and file the requisite deregistration documents.
Now, a Fund must notify CIMA of its intention to deregister within 21 days of ceasing to trade or being placed into liquidation, complete and file its final audit (or seek and be granted an audit waiver from CIMA), and, be in good standing, prior to the deregistration documents being filed.
The new deregistration procedures will apply to any new deregistration applications going forward. Any Funds which commenced their LUT or LUL status applications under the old procedures will still be able to take advantage of the fee concessions under those procedures.
If you feel your Fund may be impacted by these updates, or you have any questions, please contact your usual Stuarts attorney or reach out to Chris Humphries at email@example.com or Jonathan McLean at firstname.lastname@example.org.