Government Fee Increases for Financial Services Effective 1 January 2026 (2025-12-31)

Summary

This is a general industry notice from the Cayman Islands Monetary Authority (CIMA) announcing a series of legislative amendments that increase government fees for various regulated sectors, effective 1 January 2026. The amendments were approved by Cabinet and published on 19 December 2025, and cover mutual funds, private funds, insurance, banking and trust companies, and accountants.

• Mutual funds and private funds: The amendments consolidate the previously separate annual fee and annual return fee into a single consolidated annual fee, intended to reduce duplication and simplify compliance.
• Insurance sector: Class B(i), (ii) and (iii) insurers (generally captive insurers) will see a 10% increase in annual fees.
• Banks and trust companies: A new tiered annual fee structure based on total assets under management will be phased in incrementally from 2026 to 2028.

The notice also sets out transitional payment and penalty arrangements: regulated entities must pay at least the 2025 fee amounts by the statutory deadline of 15 January 2026, and no penalties for the 2026 fee increases will be assessed before 16 February 2026, after which CIMA will begin applying penalties on outstanding annual fees. Entities are encouraged to review the specific amendment regulations relevant to their sector to ensure timely compliance.

Key obligations

• Regulated entities must remit, at a minimum, the 2025 fee amounts by the statutory deadline of 15 January 2026
• Regulated entities must ensure full compliance with the updated 2026 fee amounts before penalties begin to apply from 16 February 2026
• Regulated funds (mutual funds and private funds) must pay the new consolidated annual fee in place of the previous separate annual fee and annual return fee
• Class B(i), (ii) and (iii) insurers must pay the increased (10% higher) annual fee
• Banks and trust companies must pay fees under the new tiered annual fee structure based on total assets under management, phased in from 2026 to 2028

Applies to

mutual funds, private funds, Class B(i) insurers, Class B(ii) insurers, Class B(iii) insurers, banks, trust companies, accountants

Deadlines

• 1 January 2026: Effective date of the legislative fee amendments
• 15 January 2026: Statutory deadline for regulated entities to remit at least the 2025 fee amounts
• 15 February 2026: No penalties will be assessed for 2026 fee increases until after this date
• 16 February 2026: CIMA will begin applying penalties on outstanding annual fee amounts
• 2026 to 2028: Period over which the new tiered banking fee structure increases will be phased in