Pursuant to the Cayman Islands Monetary Authority ("CIMA") notices issued on 14 December 2020 (found here) and 11 December 2020 (found here) respectively, CIMA has advised the following:

Termination of Mutual Funds on or prior to 31 December 2020

CIMA has confirmed that where mutual funds have applied to deregister with CIMA and have satisfied all of the mutual fund termination requirements on or prior to 31 December 2020 except for:

  1. the filing of the final audited accounts and the Fund Annual Return (the "FAR"); and
  2. payment of the FAR fee,

then CIMA will honour 31 December 2020 as the deregistration date effective on receipt of those outstanding items. CIMA note that the audit reports filed must reflect a pre-2021 sign-off date and that submission of the outstanding items must be completed by 31 March 2021. However, funds that are not in good standing (eg not up to date with previous years' audited accounts or FAR fees) will remain in Licence Under Termination ("LUT") status and therefore liable for the requisite 2021 CIMA fees.

FAR Form 4.0

The FAR Form 4.0 has now been published together with updated Completion Guide available on CIMA's website. The FAR Form 4.0 replaces the FAR Form 3.0 and mutual funds with a financial year end of 30 June 2020 or later are required to complete and submit audited financials with the FAR Form 4.0. The new FAR form can be found here.

CIMA has provided for a three-month extension to the filing deadline of all mutual funds with a financial year end of 30 June 2020, with those funds now having until 30 March 2021 to file the audited financial statements and the FAR Form 4.0.

CIMA has confirmed that there are no fees associated with this extension, but all other fees remain in effect. CIMA expects that all submissions will be filed on or before the extended deadline.

Originally Published by Walkers, December 2020

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