The Cayman Islands Government as a result of ongoing discussions
with the U.K. Foreign and Commonwealth Office have developed new
regulatory requirements and fee increases for the Cayman Islands
financial industry. However, for the first time they have proposed
an extraterritorial regulatory regime for foreign administrators to
Cayman Islands funds.
The below is a summary of the proposals and the fees that will
effect administrators not located in the Cayman Islands.
Non- Resident Mutual Fund Administrator's
For the first time administrators outwith the Cayman Islands
will have to obtain a Licence with CIMA and pay the same fees as a
licensed administrator located in the Cayman Islands. CI$30,000 (up
to 49 mutual funds) or CI$35,000 (over 50 funds).
Mutual Fund Fee increase
The typical fund registered with the Cayman Islands Monetary
Authority ("CIMA") is a MF1 type fund
which previously paid CI$3,000 (US$3,659) per year will now pay
Cayman Islands Administrator Licence Fee
A CIMA licensed mutual fund administrator will pay and annual
Licence fee of either CI$30,000/US$36,585 (up to 49 mutual funds)
or CI$35,000/US$42,682 (over 50 funds).
Registrar of Companies Fee Increase
The annual fees for the Registrar of Companies have been
increase from CI$600 (US$731) to CI$675 (US$823) for share capital
up to US$50,000.
Registered Office fee for Trustees in the Cayman
A new fee for licensed Trustees in the Cayman Islands has been
proposed so that they will have to pay a fee of CI$100 (US$122) for
each client that they provide registered office to.
Per client fee for Company Managers and Corporate
Service providers in the Cayman Islands
The per client fee payable in addition to the annual Licence fee
has been increased for Company Managers from CI$50 to CI$100
(US$122) and CI$25 to CI$50 (US$61) for corporate service
Partnership fee increase
The annual fees for the Registrar of Exempted Limited
Partnerships will increase from CI$750 (US$915) to CI$1,200
The Securities Investment Business Law fee
The under the Securities Investment Business Law
("SIBL") which regulates entities incorporated as
managers to investment funds, the majority of whom exempt from
obtaining a license and are known as an 'excluded
person'. The SIBL Excluded Person fee payable to
CIMA will increase from US$4,269 to US$6,100.
Summary of typical fees 2013
Below is are the typical new fees to be paid by a CIMA
Registrar of Companies
CI$600 (US$731) CI$3,600 (US$4,390)
CI$675 (US$823) CI$4,175 (US$5,091)
ABOUT THE AUTHOR: Victor Murray is an independent accredited
director at MG Management Ltd. who is resident in the Cayman
Islands and he is an Executive Committee member of the Cayman
Islands Directors Association. He is admitted as a Lawyer in New
York and as a solicitor in Scotland. He has considerable offshore
fund experience as in-house counsel for Citco and thereafter as a
director or many hedge funds.
On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
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