What are the requirements?
Any Cayman Islands entity that is registered with the Cayman Islands Monetary Authority ("CIMA") as a private fund is required to file a Fund Annual Return ("FAR") form each year with CIMA. The FAR form must be filed within six months of a private fund's financial year end. If the FAR Form is not filed by the deadline, the fund will be in breach of a regulatory requirement, will not be in good standing and may be subject to regulatory fines.
There has been an extension to the filing deadline so entities with a 31 December financial year end must file by 30 September 2021. CIMA has indicated that it expects the FAR form template to be released on or around 30 June 2021. Please click here to see our previous advisory on this.
A FAR filing fee of US$365.85 must be paid to CIMA when the FAR form is filed. There is an additional fee of US$182.93 for each alternative investment vehicle ("AIV") (unless itself a registered private fund) and each sub-fund of the private fund, in relation to which information is provided on the FAR form (up to a combined maximum of 25 AIVs and sub-funds).
Private funds that have not yet received any capital contributions from investors are not required to file a FAR form, but are required to make a simple declaration to this effect. This declaration is due by 30 June 2021 for private funds with a financial year end of 31 December.
What is the impact?
If any of your entities are registered as private funds with CIMA, they will be required either to file a FAR form with CIMA and pay the FAR filing fee or to file a declaration to the effect that the fund has not yet received any capital contributions from investors. The FAR form for registered private funds is expected to be similar to the form for regulated mutual funds, but the operator of a private fund must also declare that the private fund is in compliance with the valuation, safekeeping and cash monitoring requirements of the Private Funds Act (as amended).
How can Walkers Professional Services ("WPS") assist?
Preparing the FAR forms can be time consuming and administratively burdensome. WPS has a dedicated team who can assist with the preparation of the FAR form and the subsequent filing with CIMA. Our solution requires minimal input from you, cutting down on the time and resources needed to meet this regulatory requirement. WPS can also pay the FAR filing fee to CIMA on behalf of the private fund. If your private fund has not yet received capital contributions from investors, WPS can file a declaration to this effect with CIMA on behalf of the fund.
What are the next steps?