Mutual Funds (annual return) regulations, amended in Dec. 2016, confirm the policy of the Cayman Islands Monetary Authority to require the filing of a separate fund annual return for each sub-fund of a Cayman regulated mutual fund.
Each financial year a regulated fund with sub-funds in its structure must file a fund annual return (FAR) for each sub-fund within six months of the financial year end. For regulated funds with a financial year ending Dec. 31, 2016, FARs will need to be submitted to CIMA by the fund’s auditor by June 30, 2017, law firm Harneys said in a client notice.
As part of the filing process, CIMA will send a confirmation of the filing and notification that the fund annual return fee is due to the auditor that made the filing, all current directors of the fund, the fund’s registered office and the service provider identified by the fund as responsible for paying fees.
Under the regulations, the fund’s auditor is responsible for the filing but not for payment of the fee.
The change will reduce the possibility that the service provider responsible for paying the FAR fee makes the payment before the FAR has been filed by the auditor, causing it to be rejected by CIMA, Harneys said.
The regulations are part of an ongoing tightening of enforcement and reporting provisions under Cayman Islands financial services law, the law firm added.
News Source: Cayman Compass