Private Funds Law FAQs Update - Audit Requirements (2020-07-22)

Summary

This is a CIMA general industry notice from 22 July 2020 that updates one of the frequently asked questions (FAQs) accompanying the Private Funds Law (PFL), specifically clarifying the audit requirements applicable to Private Funds. It confirms the ongoing statutory obligation under section 13(1) of the PFL for Private Funds to have annual audits performed by a CIMA-approved auditor, and to file audited accounts together with the Fund Annual Return (FAR) within six months of financial year end.

2020 Audit Requirement

Who must comply: All Private Funds active as at 7 February 2020, or registered after that date (including before the end of the transitional period on 7 August 2020), must submit audited accounts and a FAR for 2020 within six months of their financial year end.
Local sign-off: The local audit sign-off requirement applies to these audited accounts.

Transitional Filing Extension

Eligibility: Private Funds with a financial year end falling between 7 February 2020 and 31 July 2020 are granted an additional three months to file their audited accounts and FAR.
Example: A February 2020 financial year end fund would file by November 2020 instead of August 2020.

This notice applies to entities registered or required to register as Private Funds under the PFL and is informational/clarificatory in nature, restating and elaborating on existing statutory obligations rather than creating new substantive law.

Key obligations

Private Funds must have their accounts audited annually by an auditor approved by CIMA, per section 13(1) of the PFL.
Private Funds must submit audited accounts together with the Fund Annual Return (FAR) to CIMA within six months of the end of each financial year.
Private Funds active as at 7 February 2020, or registered after that date (including before 7 August 2020), must submit audited accounts and FAR for the 2020 financial year within six months of their financial year end.
Private Funds with a financial year end between 7 February 2020 and 31 July 2020 must file audited accounts and FAR within an extended nine-month period from financial year end (three additional months beyond the standard six).

Applies to

Private Funds

Deadlines

within six months of the end of each financial year: Standard deadline for Private Funds to submit audited accounts and Fund Annual Return (FAR) to CIMA.
7 August 2020: End of the transitional period for registration under the Private Funds Law referenced in relation to 2020 audit requirements.
FYE between 7 February 2020 and 31 July 2020: additional three months (e.g., February 2020 FYE filed by November 2020 instead of August 2020): Extended filing deadline for audited accounts and FAR for Private Funds with financial year ends in this window.