Notice - Registering/Licensing as a Regulated Fund FAQs (2019-09-04)

Summary

This is a CIMA notice dated 4 September 2019 providing answers to frequently asked questions about registering or licensing a fund as a regulated mutual fund under the Mutual Funds Law (as revised). It clarifies the documentation and fees required for each fund type, lists common reasons why CIMA rejects applications, and explains how the registration/licence date is determined when an initial application is rejected and later resubmitted.

• Registered Funds: Under Section 4(3) of the Mutual Funds Law.
• Master Funds: Under Section 4(3) of the Mutual Funds Law.
• Administered Funds: Under Section 4(1)(b) of the Mutual Funds Law.
• Licensed Funds: Under Section 4(1)(a) of the Mutual Funds Law.

The notice applies to funds seeking registration or licensing, and to the service providers involved in that process, including directors proposed for appointment and investment managers named to a fund.

• Common rejection reasons: Applications are commonly rejected due to incomplete REEFS forms; non-compliant or unregistered directors under the Director Registration and Licensing Law; unauthorized investment managers under the Securities Investment Business Law; missing fees; incomplete attachments; or inconsistencies between the fund name on REEFS and its constitutional documents.

Appendix A sets out, in table form, the specific application forms, supporting documents (affidavits, auditor and administrator consent letters, certificate of incorporation/registration, offering document), applicable fees, and MLRO application requirements for each of the four fund categories, as well as the personal documentation required for appointed directors.

Key obligations

• Service providers should confirm a proposed director's compliance status under the Director Registration and Licensing Law before submitting a fund's registration/licence application
• Directors must advise the fund of their DRLL compliance status when proposed and regularize any non-compliance before the application is submitted
• Service providers should confirm a proposed investment manager's authorization status under the Securities Investment Business Law before submitting a fund's application
• Investment managers must advise the fund of their SIBL authorization status when proposed and regularize any non-compliance before the application is submitted
• Applicants must submit complete documentation, fees, and forms as specified in Appendix A for the applicable fund category (Registered, Master, Administered, or Licensed Fund) to avoid rejection of the application

Applies to

Registered Funds, Master Funds, Administered Funds, Licensed Funds, Investment Managers, Directors of regulated funds, Fund service providers

Deadlines

• prior to submission of the fund's application: Directors must confirm and, if necessary, regularize their DRLL compliance status before the fund's application is submitted
• prior to submission of the fund's application: Investment managers must confirm and, if necessary, regularize their SIBL authorization status before the fund's application is submitted