The Cayman Islands Government announced on 20 March 2012 that the deadline for the registration of 'master funds' has been extended by 60 days to 21 May 2012.
This extension had been expected as a result of the previous advisory issued by the Government stating that the Government and the Cayman Islands Monetary Authority (CIMA) both disagreed with an interpretation held by some practitioners that a 'master fund' with only one regulated feeder fund is not required to be registered with CIMA. In that advisory, the Government announced that it would be issuing further legislation to clarify the point. As at the date of this eAlert, the Government has not issued any such revised legislation.
Appleby has been in regular contact with CIMA about the requirement for 'master funds' to register with CIMA. Operators of 'master funds' should be aware that, although the deadline for registration has been extended, the obligation to register arose on 21 December 2011. This means that only 'master funds' that have ceased trading prior to the registration deadline are not required to register; all other 'master funds' must register.
Failure to register a master fund by an operator (eg director, trustee or general partner) of that master fund means that the operator would be guilty of an offence and liable for a fine on conviction of CI$100,000 (approximately US$125,000).
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