Funds Registration with CIMA according to the new Cayman Islands Private Funds Law – Follow-up Update

Dear Clients and Colleagues,

Following the client update circulated by us on February 18, 2020, with respect to the requirement to register all Cayman Islands investment funds with the Cayman Islands Monitory Authority (“CIMA”), we hereby update that CIMA has recently published the forms required for the registration of those investment funds which were not previously subject to the registration requirement.

As part of the forms, which will be submitted via CIMA’s designated electronic system, every fund is required to disclose information with respect to the nature of its operations, the terms of investment therein (such as its investment strategy, the minimum investment amount in the fund and the fund’s functional currency), information regarding its management and administrative entities (for instance the place of incorporation of the management company and the name of the fund’s administrator) and information regarding the Cayman Islands’ auditors of the fund (who will approve and sign the financial statements of the fund, which are to be submitted on an annual basis with CIMA). Furthermore, funds will be required to disclose information with respect to the appointment of anti-money-laundering officers.

Moreover, each fund will be required to submit with CIMA its incorporation documents, subscription documents and a structure chart.

Closed-ended funds (i.e. funds which do not permit redemptions), will be required to pay a one-time fee of USD 366 fee upon their initial registration with CIMA and an annual fee of USD 4,268 paid in January of every subsequent year thereafter. Closed-ended funds will also be required to pay a USD 366 filing fee upon filing the fund’s audited financial statements with CIMA.

A kind reminder that pursuant to the new legislation, funds must complete their registration with CIMA before August 7, 2020.

We will be happy to assist with the registration of your Cayman Islands funds with CIMA and to advise on any amendments required in the funds’ organizational documents and/or drafting notifications to your investors, to the extent required in connection with the CIMA registration and the aforesaid changes in the Cayman law.

We welcome you to contact us with respect to any questions you may have.

Herzog Fox & Neeman’s Investment Funds Team