CIMA Policy for Exemption from Valuation Requirements for Private Funds

 

CIMA Policy for Exemption from Valuation Requirements for Private Funds

Regulatory Policy on Exemption from Valuation Requirements for a Private Fund dated September 2020. Section 16(7) of the Private Funds Law, 2020 provides that CIMA may exempt a private fund from valuation requirements either absolutely or subject to conditions.

The policy states that a valuation exemption will be given under exceptional circumstances only and sets out supporting documentary and informational requirements required for an application for exemption.

An absolute exemption will only be granted where assets of the fund frozen by a Cayman Islands court or where there is an applicable mutual legal assistance treaty. Conditional exemptions (maximum one-year period) include, amongst others:

  • a fund has not launched
  • a fund is unable to complete valuation due to events such as bankruptcy or enforcement action related to fund or investment position

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances. If you would like further information, please contact:


Chris Humphries
Managing Director
Tel:(+1 345) 814 7911
chris.humphries@stuartslaw.com


Jon McLean
Partner
Tel:(+1 345) 814 7930
jon.mclean@stuartslaw.com