Fund Registration FAQs (2019-09-04)

Summary

This is a Cayman Islands Monetary Authority (CIMA) general industry notice from September 2019 answering frequently asked questions about the process for registering or licensing funds under the Mutual Funds Law (as revised).

• Documentation requirements: Explains the documentation required for the different categories of regulated funds: Registered Funds, Master Funds, Administered Funds and Licensed Funds.
• Rejection reasons: Sets out the most common reasons CIMA rejects fund registration or licence applications.
• Registration/licence date: Explains how the registration or licence date is determined if an application is rejected and resubmitted.
• Director and investment manager compliance: Explains how funds can confirm that proposed directors and investment managers are compliant with the Directors Registration and Licensing Law and the Securities Investment Business Law, respectively, before submitting an application.

The notice applies to funds seeking registration or licensing under Section 4(3), 4(1)(a) or 4(1)(b) of the Mutual Funds Law, as well as to the directors, investment managers and service providers involved in preparing fund applications. It is primarily explanatory or informational, restating existing legal and procedural requirements rather than creating new rules, but it does set out an Appendix A checklist of documents and fees needed for each fund type and states where responsibility lies for confirming director and investment manager compliance status prior to application.

Because it is a guidance or FAQ notice rather than a rule or regulation, it does not itself impose new binding continuing obligations beyond what already exists under the MFL, DRLL and SIBL, but it clarifies practical compliance steps applicants and service providers should take to avoid application rejection.

Key obligations

• Applicants must submit a complete REEFS application (with correct form depending on fund type), affidavit for electronic records, auditor's letter of consent, administrator's letter of consent, certificate of incorporation/registration, offering document, and the applicable fee to avoid rejection.
• Applicants must ensure all fund operators are identified on the REEFS application form.
• Applicants must ensure director(s) named are registered/licensed and compliant under the Director Registration and Licensing Law before submission.
• Applicants must ensure the named Investment Manager is duly authorized under the Securities Investment Business Law before submission.
• Service providers should confirm a proposed director's DRLL compliance status prior to submitting the fund's application; it is the director's responsibility to disclose their DRLL status and regularize it if non-compliant before submission.
• Service providers should confirm a proposed Investment Manager's SIBL authorization status prior to submitting the fund's application; it is the IM's responsibility to disclose their SIBL status and regularize it if non-compliant before submission.
• Applications must include consistent documentation (e.g., fund name on REEFS matching the Certificate of Incorporation/Registration) and complete attachments and fees to avoid rejection.
• A REEFS MLRO Application form (MLO-154-99) must be submitted as part of the registration/licensing package.
• Funds seeking licensing under the Retail Mutual Funds (Japan) Regulations (2018 Revision) must provide any additional information required under those Regulations.

Applies to

Registered Funds, Master Funds, Administered Funds, Licensed Funds, directors of funds, Investment Managers, service providers to funds