Transition Period for CIMA New Rule
In March 2015, the Cayman Islands Monetary Authority (CIMA) issued a new Rule regarding the cancellation of a licence or certificate of registration of regulated mutual funds, which was to take effect on March 31, 2015.
At the time, CIMA also outlined a new Regulatory Procedure for complying with the new Rule and confirming the documentary evidence that a regulated fund is required to provide to "demonstrate that it has not been, or is not being, wound up, transferred or otherwise ceasing business as a licenced or registered Fund in a manner that is prejudicial to its investors and creditors."
Since then, and following industry feedback and consultation, CIMA agreed to introduce a transition period for the implementation of the new Rule, which will now apply to deregistration applications made as of October 1st 2015.
Understanding the New Rule
Under What Circumstances Does the New Rule Apply?
Core Requirements: Payment and Document Submission
Details of the reasons for cancellation and respective documents required are outlined here.
What Changes with the New Rule?
KEY DATES TO NOTE
CIMA
October 1, 2015
CIMA New Rule and Regulatory Procedure takes effect for
cancellation of licence or certificate of registration.
December 31, 2015 (by 12 p.m.)
Deadline to fully deregister a Fund. No 2016 fees payable, if CIMA
is provided with all documents required for full
deregistration.
Deadline to place Fund into Licence Under
Termination.
Half of 2016 fees payable, if CIMA is provided with all documents
required for LUT.
Deadline to place Fund into Licence Under
Liquidation.
No 2016 fees payable, if CIMA is provided with all documents
required for LUL.
Registrar of Companies
December 22, 2015 (by 12 p.m.)
Extraordinary Gazette deadline to appoint Voluntary Liquidator if a
Voluntary Liquidation is to conclude by January 29, 2015. No 2016
Registrar of Companies fees payable if final Liquidation meeting
held on/before January 29, 2016.
January 29, 2016
If the Fund is still in existence on this date (even if it is in
Voluntary Liquidation), 2016 annual Registrar of Companies fees
will be incurred in full.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.