FAQs – Fund Services

What is a closed-ended fund?

The Mutual Funds Law does not currently define closed-ended funds but it is generally considered in the industry to be a Fund that has no regular redemption date, redemptions in limited circumstances or extensive lock-up periods. These are not regulated by CIMA

What documentation is required in order for a fund to change its name?

The following

  • the original Certificate of Registration/Licence in the current name for cancellation
  • a certified copy of the Certificate of Incorporation on Change of Name obtained from the Registrar of Companies
  • the prescribed fee 

What documentation must be submitted to add a new class of share or a sub-fund?

An electronic copy of the revised/new offering document or supplement is required to add a new class of share or a sub-fund together with the prescribed fee as per The Monetary Authority (Fees) Regulations, 2012.

If a Director is not based in Cayman, does he/she have to physically be present for a Board Meeting there?

No. If a Board Meeting is called that includes Directors in other jurisdictions, a conference call will generally be set up ideally with a Director based in the Cayman Islands taking the position as Chair to ensure the Board Meeting is recorded as taking place in the Cayman Islands. However, it will be appreciated that there may be tax or regulatory issues to be considered where Directors of funds are seen to participate in meetings of Directors from certain jurisdictions outside of the Cayman Islands.

Who can perform the audit of regulated mutual funds?

A regulated mutual fund must have its accounts audited annually by an auditor approved by CIMA, with local “sign-off”. Cayman Management is able to confirm which local firms are approved.

Can I extend the audit of the fund from say, 31 Dec 2013 to 30 June 2014?

The Cayman Islands Monetary Authority will consider a request to extend an audit period. Normally, this occurs in respect of the Fund’s first trading period. CIMA may extend the period for the first audit for up to 18 months from the date of registration of the Fund.

How long will an audit extension/exemption request from CIMA take to be approved?

Generally, a request of this sort will be finalised within a month.