Private Funds Act (2025 Revision)

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

Summary

This document is the official 2025 consolidated revision of the Cayman Islands Private Funds Act, combining the original 2020 Law with subsequent amendments (including the Private Funds (Amendment and Validation) Act, 2024) as they stand at 1 January 2025. It is the core statute governing 'private funds' in the Cayman Islands - broadly, companies, unit trusts and partnerships that pool investor money for collective investment where investors lack day-to-day control.

Excluded entities: Certain licensed banks/insurers and building/friendly societies are excluded from the definition of private fund.
Non-fund arrangements: Specified arrangements listed in the Schedule are also excluded, e.g. pension funds, joint ventures, single family offices, and securitisation SPVs.

The Act requires in-scope private funds to register with the Cayman Islands Monetary Authority (CIMA) and remain subject to CIMA's risk-based supervision. It sets out ongoing operating conditions for registered private funds.

Annual audit: Registered private funds must undergo annual audit.
Annual return filings: Registered private funds must submit annual returns.
Record retention: Registered private funds must retain records.
Valuation policies: Registered private funds must maintain valuation policies.
Safekeeping/custody: Registered private funds must have safekeeping/custody arrangements for fund assets.
Cash monitoring: Registered private funds must monitor cash.
Securities identification: Registered private funds must identify securities held.

The Act also gives CIMA broad supervisory and enforcement powers, including special measures, information requests, and powers to act against unregistered funds. It establishes an appeals mechanism, imposes duties on auditors, and provides an exemption from the Trade and Business Licensing Act.

The consolidation also incorporates a 2024 amendment validating certain registrations, filings and annual return submissions accepted by CIMA before 1 January 2025 without clear statutory authority, and updates cross-references to other revised Cayman statutes (e.g. Mutual Funds Act, Exempted Limited Partnership Act). As a revision consolidating existing law, it does not itself introduce new substantive deadlines beyond those already in the underlying Act's operative sections, most of which are not reproduced in the excerpted text available here.

Key obligations

Private funds falling within the Act's definition must register with CIMA before operating (unless within an exemption or non-fund arrangement).
Registered private funds must pay an annual registration fee to CIMA.
Private funds must inform CIMA of changes to registered details.
Registered private funds must undergo an annual audit.
Registered private funds must file an annual return with CIMA.
Private funds must retain records as required under the Act.
Private funds must maintain and apply appropriate valuation policies and procedures for fund assets.
Private funds must arrange for safekeeping/custody of custodial fund assets and identification of other fund assets.
Private funds must implement cash monitoring procedures.
Private funds must identify securities held using appropriate identifiers (e.g. ISIN) where applicable.
Auditors of private funds have obligations to report certain matters to CIMA.
Persons must not misrepresent an entity as a registered private fund.

Applies to

private funds (companies, unit trusts and partnerships pooling investor funds), operators (directors, trustees, general partners, LLC managers), managers, administrators, auditors, custodians

Deadlines

1st January, 2025: Effective/commencement date of this consolidated revision and of the Private Funds (Amendment and Validation) Act, 2024 amendments incorporated into it.

Private Funds Act (2025 Revision)

Summary

Key obligations

Applies to

Deadlines

Related documents

Topics

Version history

source file (current)