Private Fund SP Fees to be Returned (2023-03-22)

Summary

This is a short industry notice issued by the Cayman Islands Monetary Authority (CIMA) on 22 March 2023, announcing a change to how it collects annual registration fees from private fund Segregated Portfolio Companies (SPCs). Effective immediately, CIMA will stop collecting annual registration fees on behalf of individual Segregated Portfolios within private fund SPCs, and it will proactively seek to refund any such Segregated Portfolio fees paid from 2020 up to the date of the notice.

The change stems from discussions with the Ministry of Financial Services and Commerce. CIMA anticipates the Private Funds Act and its associated Regulations will eventually be amended, following broader stakeholder consultation, to introduce a proper statutory basis for any future Segregated Portfolio registration fee. Until that legislative change occurs, no such fee will be charged.

• No action required: The notice does not require private fund SPCs or their administrators to take any action to obtain a refund, since CIMA says it will seek to return fees itself.
• No deadline set: The notice does not set any filing deadline.
• What providers should know: Financial service providers dealing with private fund Segregated Portfolio Companies should be aware that Segregated Portfolio-level fees paid since 2020 may be refunded and that future statutory fee arrangements are pending legislative amendment.

Applies to

private fund Segregated Portfolio Companies, financial service providers