Every Cayman hedge fund operator should have an exit strategy
when developing a regulated Cayman fund product. While creating a
checklist for launch, they should seek guidance on the requirements
necessary to terminate the hedge fund once registered with the
Cayman Islands Monetary Authority ("Authority").
Quite simply, there are fees and there is a process. Way too
often, there is a lack of awareness of the scope of the process and
level of costs associated. Applicable requirements will depend on
whether the fund is a registered fund, an administered fund or a
licensed fund.
Timing is important. The de-registration process may be
commenced at anytime during the fund's life cycle. However, if
the process is started but not complete by or before December
31st in any given year, then at least 50% of the
applicable annual registration fees may be payable to the
Authority. This goes on until the de registration process for the
fund is complete.
