On 7 February 2020, the Cayman Islands Government enacted the Mutual Funds (Amendment) Bill (2020) and the Private Funds Bill (2020). The new legislation results in a number of Funds previously exempt from registration with the Cayman Islands Monetary Authority (“CIMA”) now being required to register. The following funds, previously exempt from registration, would now be required to register with CIMA:
Hedge funds
- The shares or interests are held by 15 or fewer investors; and
- A majority of those investors have the power to appoint or remove the fund’s operator (i.e. the directors or general partner)
Private funds
- Closed-ended funds
Previously unregistered funds will be required to register with CIMA by 7 August 2020. These funds will also be required to comply with CIMA’s rules relating to submission of financial statements audited by a Cayman Approved Auditor.
Baker Tilly Hong Kong can assist any Cayman Funds operating from Hong Kong in meeting these new requirements. Baker Tilly Hong Kong work closely with our member firm, Baker Tilly Cayman Islands (a Cayman Approved Auditor), to conduct the audits of Cayman Funds seamlessly. We can also provide assistance with financial statement preparation and other related services.
For further information in relation to the new legislation, please refer to the following links:
Baker Tilly Cayman Islands flier (Feb): https://bakertilly.ky/media/6748/new-registration-requirements-for-cayman-funds.pdf
Baker Tilly Cayman Islands flier (Mar): https://bakertilly.ky/media/6971/audit-requirements-for-cayman-funds.pdf
CIMA’s Private Funds Bill (2020) FAQ: https://www.cima.ky/upimages/noticedoc/1583246739Notice-PrivateFundsLawFAQs_1583246739.pdf
CIMA’s Mutual Funds (Amendment) Bill (2020) FAQ: https://www.cima.ky/upimages/noticedoc/Notice-MutualFundsAmendmentLaw2020FAQs_1583247011.pdf