Cancellation Procedures for Regulated Funds (2018-11-29)

Summary

This is a CIMA general industry notice explaining the practical procedures that regulated mutual funds must follow when applying to cancel a Mutual Fund Licence or Certificate of Registration. It confirms that cancellation/deregistration applications must be filed electronically via the REEFS Portal only, and directs readers to the underlying Rule and Regulatory Procedure on cancellation of licences/certificates issued under the Mutual Funds Law for the substantive requirements.

Documentation and Treatment

Core requirements: Cancellation applications must include a certified true copy of the operators'/shareholders'/unit holders' resolution stating the date the fund ceased or will cease business, and return of the original licence or certificate.
Court-supervised liquidation: Funds in court-supervised liquidation are moved to Licence Under Liquidation status once the winding-up order is received, with ongoing reporting obligations for the liquidator.
Voluntary liquidation: Voluntary liquidations require submission of stamped Companies Registry forms CWR 19 and CWR 20 in addition to the core documents.

Fee Consequences

Licence Under Termination status: Funds in this status remain liable for half the annual licence fee.
Licence Under Liquidation status: Funds reaching this status incur no further annual fees but remain liable for fees/penalties accrued beforehand.

Finally, the notice states the timing requirement for filing cancellation applications and encourages early submission to avoid processing delays and additional fee liability, particularly for funds ceasing business near year-end.

Key obligations

Submit cancellation/de-registration applications for regulated funds only via the REEFS Portal; do not submit in hard copy, by mail, or by email.
Submit all core cancellation/de-registration requirements promptly to avoid delay in being placed into Licence Under Termination (LUT) or Licence Under Liquidation (LUL) status and to avoid incurring additional annual fees.
Provide a certified true copy of the resolution of operators, shareholders or unit holders indicating the date the fund ceased or will cease to carry on business as a regulated fund.
Return the original Mutual Fund Licence or Certificate of Registration (including certified copies) to the Authority.
In court-supervised liquidations, the appointed Liquidator(s) must provide the fund's core de-registration requirements (except the resolution), settle outstanding fees or submit a Proof of Debt Form, and provide ongoing updates (electronic copies of reports filed with the Grand Court) until liquidation is complete, followed by the final liquidators' report upon completion.
In voluntary liquidations, provide the core cancellation/de-registration documents via REEFS plus electronic copies of stamped CWR Form No. 19 (Notice of Winding Up) and CWR Form No. 20 (Voluntary Liquidator's Consent to Act).
Submit the cancellation/de-registration application on the earlier of 21 days from the date the fund ceases to carry on business, or before 31 December of the year the fund ceases to carry on business.
Settle any outstanding fees with the Authority, checked via the REEFS Portal, prior to or at the time of submitting the cancellation/de-registration application.
Funds in LUT status must continue paying half the Annual Licence Fee (and any applicable penalties) until moved to LUL status.

Applies to

regulated funds, Mutual Fund Licence holders, Certificate of Registration holders, liquidators of regulated funds

Deadlines

21 days from the date the Fund ceases to carry on business: Deadline (if earlier than year-end) for submitting a cancellation/de-registration application after the fund ceases business.
Before December 31 of the year the Fund ceases to carry on business: Alternative deadline for submitting a cancellation/de-registration application if it falls before the 21-day deadline would.