On 8 January 2020, the Cayman Islands Government published a
draft Mutual Funds (Amendment) Bill, 2020 (the "Bill"),
which provides for the registration of previously exempted mutual
funds with the Cayman Islands Monetary Authority ("CIMA")
as well as certain other amendments to the Mutual Funds Law (2019
Revision) (the "Law").
The Bill, reflecting the Cayman Islands' commitment
as a co-operative jurisdiction, is responsive to EU and other
international recommendations and covers similar ground to existing
or proposed legislation in a number of other jurisdictions.
Registration and Local Audit Requirement for Section 4(4)
Funds
Mutual funds that were previously exempted from registration
under Section 4(4) of the Law on the basis of having 15 or fewer
investors, a majority of whom could appoint or remove the operator
of the fund ("Section 4(4) funds"), will now be required
to register with CIMA and become subject to certain regulatory
obligations.
