Navigating Cayman Islands Fund Regulatory Changes: Key Tips for August

Over the past few years the Cayman Islands has focused on strengthening its legal and regulatory framework, expanding oversight of investment funds through new registration requirements and the elimination of certain exemptions.

But with increased regulation comes new legal burdens for fund managers to keep track of, not to mention the risk of increased expenditures to ensure compliance. The most recent updates funds have been adapting to are The Private Funds Law, 2020 and Mutual Funds (Amendment) Law, 2020 effective immediately this past February.

With registration deadlines coming up on 7 August, fund managers should act now to figure out if these new laws apply to their entities and what steps need to be taken. However, knowing whether your funds are in-scope or not and what to do next can be difficult to navigate. Here are some quick tips to help you get started.

1. First thing’s first: figure out if you have to register your entity.

Determine if your vehicles are in or out of scope. Start by using our decision trees as a general guide.

Private Funds Law decision tree

Mutual Funds Law decision tree

If you make the initial determination that your funds will need to register with CIMA, follow our next steps to make the registration process as efficient as possible.

2. Spend time now assessing what you already have in place, and what else you’ll need for registration, well before the 7 August deadline. Ask yourself these questions:

1. Do I have proper offering memorandum/summary of terms/marketing materials available?

2. Does my fund, general partner or trustee have at least two directors?

3. Do I have AML officers appointed?

4. Do I have internal solutions, or a mandated third party administrator, for cash management, safekeeping of assets and valuation (for the Private Funds only)?

Save hassle and stress by getting requirements in place as soon as possible. Determining the answers to these questions now will help the ease of registration by 7 August, ensuring you have what you need for timely compliance.

3. Use our dedicated website and CIMA’s FAQ to understand the new laws

Bookmark our toolkit here and have all information on the PFL and MFL, updated regularly, handy on your browser. CIMA’s FAQ page is also a helpful resource for in-depth answers to questions on these new regulations.

Questions or concerns about these new laws or whether or not your fund is in scope? Looking for assistance with the registration process? We’re here to help. Click here to connect with a dedicated expert who knows the ins and outs of these requirements.