Since 1 July 2002, the Cayman Islands' Monetary Authority
("CIMA") has required local audit
sign-off on all mutual funds and mutual fund administrators
regulated by CIMA.
Summary Of Policy
Private equity funds
This policy does not apply to closed ended private equity funds.
Private equity funds are not regulated by CIMA under the Mutual
Funds Law (as amended).
Location of auditors
Only auditors with a physical presence in the Cayman Islands are
approved as auditors of record for locally incorporated or
established mutual funds and other entities subject to regulation
Location of audit
The policy does not however, require that all of the audit work
is carried out locally in the Cayman Islands or carried out solely
by the approved auditor of record. The audit can be performed
wherever the principal books and records of the entity are
maintained provided that a Cayman auditor is included in the
The policy does not apply to branches of international companies
licensed in the Cayman Islands and foreign domiciled funds that are
administered in the Cayman Islands but not otherwise registered as
foreign companies doing business in the Cayman Islands.
Reasons For Local Audit Sign-Off
Discharge of reporting obligations
The policy allows more effective discharge of the reporting
obligations placed on auditors under Section 34 of the Mutual Funds
Law and enables a more efficient interface with CIMA.
Approved auditors are obliged to report to CIMA any failure on
the part of a fund to keep sufficient records or the conduct of
business in a manner that is prejudicial to investors or
By limiting final audit sign-off to approved auditors within its
jurisdiction CIMA will have immediate and direct access to firms
issuing audit opinions on regulated entities which will help ensure
that quality control standards and local laws and regulations in
respect of audit obligations under the Mutual Funds Law are more
effectively enforced (whether or not the audit work is performed in
Applications for registration or licensing of new regulated
mutual funds and mutual fund administrators since 1 July 2002 have
had to name an approved local audit firm in the prescribed details
and file a letter of consent from such an auditor.
Altschuler, Melvoin and Glasser (Cayman)
Goldstein Golub Kessler International Cayman
Moore Stephens (Cayman Islands) Ltd.
Arthur F. Bell & Associates (Cayman)
Morris Cottingham & Co.
Baker Tilly Cayman
Harb Levy & Weiland LLP
Paul Harris & Company
J. H. Cohn (Cayman)
Kaufman, Rossin & Co. Cayman
Rankin Berkower (Cayman) Ltd.
Kinectic Partners Cayman LLP
Rothstein Kass & Company (Cayman)
Decosimo Cayman Limited
RSM Cayman Islands
Deloitte & Touche
Marcum & Kliegman (Cayman)
Untracht Early (Cayman)
Doran and Associates (Cayman)
Margolin, Winer & Evens (Cayman)
Walsh, Jastrem & Browne (Cayman)
Eisner (Cayman) Ltd.
Marks, Paneth & Shron (Cayman)
Ernst & Young
McGladrey & Pullen, Cayman
Fulvio & Associates (Cayman) Ltd
Moores Rowland (Cayman Islands)
Jonathan Tonge, Partner
London David Whittome, Partner
Jersey Heather Bestwick, Partner
British Virgin Islands
Hong Kong Philip Millward, Partner
Dubai Rod Palmer, Partner
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.
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