New registration requirements for investment funds

February 2020

On 7 February 2020, the Cayman Islands Government published the Private Funds Law, 2020 and amended the Mutual Funds (Amendment) Law, 2020 (together, the “Law”). The Cayman Islands is a leading jurisdiction in the global investment funds industry and these legislative changes were made to enhance the oversight of mutual and private funds by bringing private funds and mutual funds with fewer than 15 investors under the regulatory oversight of the Cayman Islands Monetary Authority (the “Monetary Authority”).

The Law commences on 7 February 2020 and is immediately and fully effective for all new private funds or mutual funds subsequently formed in the Cayman Islands.

A transitional period of six months has been granted to existing funds that are impacted and that have commenced carrying on business at any time prior to the effective date. Requirements for these funds subsequently include:

  • Funds will require to register with the Monetary Authority prior to 7 August 2020 to meet the timing requirements set out in the Law.
  • No registration fee will be payable upon initial registration during the transitional period for existing funds but an annual fee will be payable in January thereafter.
  • Existing funds will be required to file audited accounts with the Monetary Authority with respect to its first full financial year following registration and for each year thereafter.
  • Audited accounts that are filed with the Monetary Authority must be audited by an approved Cayman Islands-based audit firm.

Cayman Finance have published a statement detailing further information on the legislative changes here.

Alternatively please contact Greg O’Driscoll, Dara Keogh or Niall McAuliffe.