On 16 December 2016 the Cayman Islands Government enacted The Mutual Funds (Annual Returns) (Amendment) Regulations, 2016 (the "Amendments").
Pursuant to The Mutual Funds (Annual Returns) Regulations, 2006 (as amended) (the "Existing Regulations"), all funds regulated under the Mutual Funds Law of the Cayman Islands are required to submit to the Cayman Islands Monetary Authority ("CIMA"), a fund annual return ("FAR") within six months of the fund's financial year end. The FAR contains financial and operational information in respect of the fund and other general information as set out in the schedule to the Existing Regulations (the "Schedule").
The Amendments have extended the reporting requirements to each sub-fund within a regulated fund's structure.
Under the Amendments, "Sub-fund" is defined to include any or all of the following:
(a) a segregated portfolio in a segregated portfolio company structure;
(b) a sub-trust of a trust or in an umbrella or master trust structure;
(c) a class of shares, units or interests in a company, trust or partnership for which the fund maintains individually presented separate accounts.
For returns for sub-funds, the Schedule will apply to the extent that it is relevant to a sub-fund, as if the reference to a regulated mutual fund were a reference to the sub-fund.
The Amendments specify that a fee of CI$300 is payable to CIMA in respect of each return. However, if a regulated mutual fund has twenty-five sub-funds or more, the fee for the filing of all the returns of the sub-funds will be capped at CI$7,500.
Failure to comply with the Amendments will result in a fine of CI$500.
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.
