Timing for Registration of Previously Exempt Funds
The sponsors and operators of Cayman Islands mutual funds which benefited from the "15 investor exemption" under the Mutual Funds Law (as amended) (the "Mutual Funds Law") should, unless otherwise out of scope, by now be undertaking the process of registering with the Cayman Islands Monetary Authority ("CIMA"). The formal deadline for applications to be filed is 7 August 2020. Please see our client advisory on the removal of the 15 investor exemption.
Update for all Regulated Mutual Funds - Contents of Offering Documents
In exercise of its authority under the Monetary Authority Law
(as amended), CIMA has published rules for the contents of offering
documents.
All mutual funds registered or licensed under section 4 of the
Mutual Funds Law are required to comply with the rules.
The rules are largely a reiteration of best practice, although they do require the addition of language confirming that CIMA assumes no liability for the performance or creditworthiness of the mutual fund, nor for the veracity of the information contained in the offering document.
In most cases, we do not expect mutual funds will need to make significant changes to their existing offering documents.
Originally Published by Walkers, June 2020
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.