The new requirement to register closed-ended, or private, funds with the Cayman Islands Monetary Authority has to date prompted 254 funds into action.
Government enacted the Private Funds Law in January which gave closed-ended funds until 7 Aug. 2020 to register with CIMA and comply with Cayman’s investment funds regime.
Under these rules, private funds have to be audited annually by a CIMA-approved auditor in line with international standards.
They must have appropriate procedures to value their assets along with proper custody and cash-management processes.
The law also extends CIMA’s enforcement powers over the funds.
Government said the changes, which were prompted by the review of Cayman’s anti-money laundering regime, would modernise the regulatory framework for funds and introduce additional transparency for investors.
Consulting firm Cartan this week issued the first of its regular reports updating the number of private funds that have registered with the financial services regulator.
Cartan said the report intends to support financial services providers to register funds in a timely manner.
“Our report summarises the list of registered private funds from CIMA’s website and monitors the progress of private funds registration as we approach the registration deadline. Our goal is to provide up-to-date data to the local financial services community,” the company said in a press release.
The report will be updated weekly; most recently, from 16 to 23 May, 47 funds were added.
The total number of private funds in Cayman is not known as closed-ended funds can come in the form of companies, unit trusts or partnerships.