Cessation Of Regulated Mutual Funds In 2017

With Q4 fast approaching, if managers and operators are considering winding up a Cayman Islands regulated mutual fund (a "Fund"), it would be prudent to start the process as soon as possible with a view to completing it by year-end and minimising and/or precluding 2018 annual fees.

Funds that are registered with the Cayman Islands Monetary Authority ("CIMA") must submit a deregistration application and satisfy all deregistration requirements. Unless the Fund qualifies for an audit waiver (only granted in limited circumstances), this includes the filing of a "stub audit" up to the date a third party liquidator has been appointed or, if no third party liquidator has been appointed, to the date of final distribution or to the date that the final net asset value was calculated, with subsequent events notes to confirm that the final distribution has been paid to investors. Once the deregistration application is submitted, the Fund will be removed from active status and