Welcome Changes To CIMA's Policy On Audit Exemptions: Fast Action Required

In October 2015, the Cayman Islands Monetary Authority (CIMA) announced its policy with respect to audits of stub periods in the context of mutual funds. Following a public consultation, CIMA has now gazetted a revised regulatory policy setting out the conditions where it may exempt a regulated mutual fund from audit requirements (Regulatory Policy). While the Regulatory Policy retains the pre-existing grounds for application for waiver, it expands the grounds on which applications may be based. For those funds seeking to avoid an audit for the stub period 1 January 2016 to 30 June 2016, fast action is required in order to make use of the changed policy before 30 June 2016.

In considering whether to exempt a fund from the annual audit requirement, CIMA must be satisfied that the exemption will not contravene any terms of the fund's articles or other constitutive documents and its offering document, or prejudice the fund's investors and creditors. In addition to the