CIMA has historically allowed registered funds that have operated but are now being terminated to apply for a part-year audit waiver when the initial termination filings are made. Although the waivers were discretionary, CIMA almost always granted them. However, CIMA has recently changed its policy on this and from 1 October 2015 it will no longer grant such waivers.
If this affects you, speak to your usual Ogier contact or simply contact us for guidance on next steps.
In the meantime, our checklist will guide your thinking on the subject.
Do you have Cayman vehicles that you no longer have a use for?
If so, you may wish to consider terminating these vehicles and you need to act now to maximise savings and avoid 2016 fees.
How much will I save?
An average CIMA registered Master/Feeder structure will incur over US$13,000 in annual fees if its liquidation has not been completed by 31 December 2015 (in addition to its various service provider fees) but by acting now you could minimise or avoid these fees entirely.
How much time do I have?
Voluntary liquidations under Cayman Islands Law follow certain prescribed notice periods that must be observed, which is why you need to act soon to ensure the voluntary liquidation process is completed by year end.
The last possible filing date to complete the voluntary liquidation by year end is midday on 27 November 2015 but given the time it takes to prepare for the voluntary liquidation process you will need to contact us well before that deadline.
What are my audit requirements for a CIMA registered fund?
CIMA has historically allowed registered funds that have operated but are now being terminated to apply for a part-year audit waiver when the initial termination filings are made. Although the waivers were discretionary, CIMA almost always granted them. However, CIMA has recently changed its policy on this and from 1 October 2015 it will no longer grant such waivers. Even if you have not completed your wind-down by 1 October 2015 you can still take advantage of the existing audit waiver policy by making certain basic initial filings with CIMA prior to 1 October 2015. Contact us as soon as possible to find out how.
Not quite ready to proceed?
No problem. We can still assist in the process leading up to the voluntary liquidation and there are still substantial savings to be achieved even if the voluntary liquidation is not completed by year end.
What about a strike-off instead of a voluntary liquidation?
A strike-off is a more cost effective and less time consuming option but has the downside that it can be undone for a period of 10 years after the strike-off date and for this reason we don't usually recommend this option where the entity in question has traded.
If a strike-off is a viable option you'll need to have all relevant materials filed before the end of December 2015 to avoid 2016 annual fees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.