EReporting Notice - Audit Requirements and Filings: Regulated Funds FAQs (2019-06-17)

Summary

This is a CIMA notice published as a set of Frequently Asked Questions (FAQs) clarifying audit requirements and filing procedures for regulated funds under the Mutual Funds Law (2019 Revision). It does not create new law but explains how CIMA applies existing statutory audit, filing, extension, and REEFS Portal (electronic reporting) rules to regulated funds, their auditors, operators and service providers.

The FAQs cover the following topics:

• The statutory requirement for regulated funds to have annually audited accounts filed together with the Fund Annual Return (FAR)
• Who may request audit waivers or extensions
• How outstanding fees or accounts affect current-year filings
• Conditions for audit waivers
• The process and limits for audit extension requests
• Consequences of late extension requests or outstanding prior-year accounts
• The FAR filing fee
• How to request rejection of a previously filed FAR/audited accounts
• Mechanics of the REEFS Portal audit filing rows, including how and when they open/close and how to report portal issues (e.g., inability to locate a fund or sub-fund in the dropdown, or irrelevant rows appearing)

The notice is aimed at regulated mutual funds and the parties who act for them in these filings -- operators, administrators, investment managers/advisers, legal counsel, and approved auditors -- clarifying practical compliance steps rather than imposing new substantive obligations beyond those already in the Mutual Funds Law and related regulatory policies/procedures.

Key obligations

• Regulated funds must have their accounts audited annually by an auditor approved by CIMA (per section 8(1) of the Mutual Funds Law).
• Regulated funds must submit audited accounts together with the Fund Annual Return (FAR) to CIMA within six months of the end of each financial year.
• Requests for audit waivers or extensions must be made by the fund's operators or an authorised service provider.
• A written audit extension request (signed cover letter on official letterhead) from a current service provider or operator, plus the applicable fee, must be submitted to EReporting@cimoney.com.ky, with the fund's full legal name and purpose stated in the subject line, on or before the expiration of the audit filing deadline.
• Second and third audit extension requests must be accompanied by a letter from the fund's auditor explaining the reason for the delay.
• A fund is limited to a maximum of three one-month audit extensions.
• Funds that fail to submit an extension request before the filing deadline will be recorded as in breach of the MFL, even if the late request is still processed.
• Outstanding audited accounts from prior years remain classed as a breach until filed, regardless of current-year extension approval.
• A FAR fee of CI$300 is payable each time a FAR is filed, regardless of fund structure or regulated status.
• Requests to reject a previously filed FAR/audited accounts must be made in writing by the fund's operator(s) or approved auditor to EReporting@cimoney.com.ky, stating the fund's name and reason for rejection, with subject line purpose specified.
• Auditors must notify CIMA of their appointment as auditor of record or of the creation of sub-funds/segregated portfolios; if a fund or sub-fund cannot be located in the REEFS Portal dropdown, this must be reported by email with supporting documentation attached where it is the initial notification.
• Audited accounts and the FAR must be filed within the applicable REEFS Portal audit filing row (open for up to 18 months after financial year-end), or the row will automatically close if not filed or extended by the relevant date.

Applies to

regulated funds, mutual funds, fund operators, fund administrators, investment managers/advisers, approved auditors, legal counsel to funds, registered/principal offices of funds

Deadlines

• within six months of the end of each financial year: Deadline for a regulated fund to submit audited accounts and the Fund Annual Return (FAR) to CIMA.
• on the day of or prior to the expiration of the regulated fund's audit filing deadline: Deadline for submitting a written audit extension request to CIMA.
• one-month increments, up to a maximum of three (3) extensions: Maximum length and number of audit filing extensions CIMA will grant.
• e.g., 1 January to 30 June for a December financial year-end fund: Example of the period during which the REEFS Portal audit filing row remains open for filing audited accounts and FAR before automatically closing if not filed or extended.