Cayman Islands Fund Deregistration - Common Pitfalls And How To Avoid Them

It's fair to say that when a fund comes to the end of its natural life, most managers expect the deregistration process to be quicker and simpler than the launch process.

So it may come as a surprise that the Cayman Islands Monetary Authority ("CIMA") have reported that, up to 20% of all deregistration applications are returned as a result of one or more deficiencies resulting in increased approval times.

It's true that the rules and processes for deregistration have evolved. But it's also true that CIMA's Rule on Cancellation of Licences or Certificates of Registration for Regulated Mutual Funds and Registered Private Funds dated August 2022 (the "Rule") and Regulatory Procedures on Cancellation of Licences or Certificates of Registration for Regulated Mutual Funds and Registered Private Funds dated August 2022 (the "Procedures") have both been in place for now over 3 years. CIMA have also published guidance on the deregistration process and related issues