Mutual Funds Local Audit Sign-Off

Introduction

Since 1 July 2002, the Cayman Islands' Monetary Authority ("CIMA") has required local audit sign-off on all mutual funds and mutual fund administrators regulated by CIMA.

Summary Of Policy

Private equity funds

This policy does not apply to closed ended private equity funds. Private equity funds are not regulated by CIMA under the Mutual Funds Law (as amended).

Location of auditors

Only auditors with a physical presence in the Cayman Islands are approved as auditors of record for locally incorporated or established mutual funds and other entities subject to regulation by CIMA.

Location of audit

The policy does not however, require that all of the audit work is carried out locally in the Cayman Islands or carried out solely by the approved auditor of record. The audit can be performed wherever the principal books and records of the entity are maintained provided that a Cayman auditor is included in the process.