Limited Investor Fund - Audit Requirement (2020-11-26)

Summary

This is a CIMA general industry notice dated 26 November 2020 clarifying an existing frequently-asked-question on the audit requirements applicable to Limited Investor Funds regulated under the Mutual Funds Law (2020 Revision). It restates that Limited Investor Funds must have their accounts audited annually by a CIMA-approved auditor and must file the audited accounts together with the Fund Annual Return (FAR) within six months of the end of each financial year.

Timing of First Audit

• General rule: The first audited accounts are due for the fund's first financial year-end occurring after its registration with the Authority.
• Example: A fund registered in August 2020 with a 31 March year-end would have its first audit cover the period to 31 March 2021, filed by 31 August 2021.
• Possible extension: Consistent with CIMA's Regulatory Policy on Exemption from Audit Requirement for a Regulated Mutual Fund, the Authority may consider extending a Limited Investor Fund's first audit period up to a maximum of 18 months from its date of registration, including where the fund was already operating before registration.

This is an informational clarification rather than a new rule change, but it restates binding statutory obligations under section 8 of the Mutual Funds Law and practical filing timing guidance that Limited Investor Funds and their administrators should follow.

Key obligations

• Limited Investor Funds must have their accounts audited annually by an auditor approved by the Authority, per section 8 of the Mutual Funds Law (2020 Revision).
• Limited Investor Funds must submit their audited accounts together with the Fund Annual Return (FAR) to the Authority within six months of the end of each financial year.
• The first audited accounts must be filed for the fund's first financial year-end occurring after its registration with the Authority, unless an extension is granted.
• Funds seeking an extension of the first audit period (up to a maximum of 18 months from date of registration) should apply consistent with CIMA's Regulatory Policy on Exemption from Audit Requirement for a Regulated Mutual Fund.

Applies to

Limited Investor Funds, mutual funds

Deadlines

• within six months of the end of each financial year: Deadline for submitting audited accounts together with the Fund Annual Return (FAR) to CIMA.
• maximum of 18 months from date of registration: Maximum extension period the Authority may allow for a Limited Investor Fund's first audit.