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Act

Mutual Funds Act (2025 Revision)

Cayman Islands Monetary Authority (CIMA) · Cayman Islands

In force

Status per the Cayman Islands legislation register (legislation.gov.ky) (as at 2026-07-09)

View on CIMA's website Source document

Current version last checked: 2026-07-05

Summary

This is the consolidated, revised text of the Cayman Islands Mutual Funds Act as it stood on 1 January 2025 (incorporating amendments up to Act 18 of 2024 and prior amending laws). It is the principal statute under which CIMA licenses and supervises open-ended collective investment vehicles (companies, unit trusts and partnerships that pool investor funds and issue redeemable equity interests) and the persons who administer them.

The Act defines what counts as a 'mutual fund', 'regulated mutual fund', 'master fund', 'feeder fund' and 'EU Connected Fund', and sets out the licensing regimes for funds themselves (Mutual Fund Licences) and for mutual fund administrators (Mutual Fund Administrators Licences), including a special regime (Part 3A) for EU Connected Funds that can elect to be licensed or registered.

Ongoing Obligations

  • Regulated mutual funds: Annual audit, annual fee, restrictions on use of certain names, and a prohibition on misrepresenting fund status.
  • Licensed mutual fund administrators: Annual audit, notice to CIMA of specified matters, restrictions on transfers/issues of shares in the administrator, approval requirements before appointing directors/senior officers, and a minimum-directors requirement for certain administrators.

CIMA Supervisory and Enforcement Powers

  • Call for information.
  • Conduct special audits.
  • Direct increases in capital.
  • Act against unlicensed administrators or unregulated funds operating in breach of the Act.
  • Attend winding-up proceedings.
  • Exercise search-warrant powers.
  • A duty on auditors to report certain matters to the Authority also applies.

Miscellaneous provisions cover appeals against CIMA decisions, Cabinet's power to waive or reduce fees, rule-making (regulations), an exemption from the Trade and Business Licensing Act, and savings/transitional and fee-validation provisions relating to earlier amending legislation.

As a revision (not new substantive legislation), the document itself does not introduce new deadlines; it consolidates existing law as at 1 January 2025, the date the revision took effect, with the underlying 2024 amendment/validation Act having commenced on 1 January 2024 (per the endnote legislation history) and validating fees and returns collected without prior statutory authority.

Key obligations

  • Persons operating a company, unit trust or partnership meeting the 'mutual fund' definition must be licensed or otherwise regulated as a mutual fund under the Act (section 4/5) rather than operating unregulated.
  • Regulated mutual funds must have their accounts audited annually by an auditor approved by the Authority (section 8).
  • Regulated mutual funds must pay an annual fee to the Authority (section 9).
  • Persons carrying on mutual fund administration business in or from the Islands must be authorised/licensed as a mutual fund administrator (section 10).
  • Licensed mutual fund administrators must obtain the Authority's approval before appointing a director or equivalent officer (section 21).
  • Certain licensed mutual fund administrators must have at least two directors (section 22).
  • Any issue or transfer of shares in a licensed mutual fund administrator is restricted and generally requires notice to or approval of the Authority (section 13).
  • Licensed mutual fund administrators must give notice to the Authority of certain specified matters (section 17).
  • Licensed mutual fund administrators must have their accounts audited annually (section 20).
  • Regulated mutual funds and licensed mutual fund administrators must not use restricted names implying regulated/licensed status without entitlement, and must not misrepresent their status (sections 6, 7, 18, 19).
  • Auditors of regulated mutual funds and licensed mutual fund administrators have a statutory obligation to report certain matters to the Authority (section 35).
  • EU Connected Funds electing to be licensed or registered must give notice to the Authority, comply with the Act, and provide information as required (Part 3A, sections 22B-22H).
  • Persons must not hinder the Authority in the exercise of its powers, including search warrant powers (section 34).

Applies to

regulated mutual funds, mutual fund administrators, licensed mutual fund administrators, EU Connected Funds, auditors of regulated mutual funds and licensed mutual fund administrators

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Version history

2026-07-05

source file (current)