Mutual Fund Administrators Licence (Applications) Regulations, 2001

Summary

This is a 2001 regulation made under the Mutual Funds Law (1999 Revision) that sets out exactly what must be included in an application to the Cayman Islands Monetary Authority (via the Governor) for a Mutual Fund Administrators Licence. It applies to any person or company applying for either a 'Full' Mutual Fund Administrators Licence (allowing administration of an unlimited number of regulated mutual funds) or a 'Restricted' Mutual Fund Administrators Licence (limited to named funds specified in the licence).

The substantive content is a Schedule listing the particulars and supporting documents an applicant must submit.

• Corporate documents: Corporate constitution documents
• Personnel lists: Lists of directors/officers/shareholders
• Beneficial ownership: Beneficial ownership questionnaires
• References and certificates: References and police certificates for directors/officers/major shareholders
• Professional experience: Evidence of professional knowledge and experience in fund administration
• Auditor details: Auditor details
• Business plans: Business plans and customer base
• Net worth: Net worth evidence (at least US$400,000 for a Full Licence)
• Jurisdiction: Jurisdiction of operations
• Regulatory history: Regulatory history/disciplinary record disclosures
• Foreign-incorporated applicants: Parent company confirmations and guarantees of legal responsibility

The regulation does not itself impose ongoing periodic compliance obligations on already-licensed administrators; rather it defines the mandatory content of the initial licence application package. It also requires applicants to undertake to disclose material changes to their application while it is under consideration and, for restricted licence applicants, to only administer the specifically named funds.

Key obligations

• An applicant for a Mutual Fund Administrators Licence must submit all particulars and supporting information specified in the Schedule, including corporate constitutional documents, director/officer/shareholder lists, beneficial ownership questionnaires, references and police certificates for key individuals and major shareholders.
• A Full Mutual Fund Administrators Licence applicant must provide evidence of net worth of at least US$400,000 (or equivalent).
• A Full Licence applicant must name two individuals or a body corporate resident/incorporated in the Islands authorised to act as the applicant's agent in the Islands.
• A Restricted Licence applicant must provide the names and addresses of the specific mutual funds to be administered, together with the offering memorandum and evidence of compliance with the Authority's related mutual funds policy.
• Applicants that are companies incorporated outside the Islands must provide written confirmation of concurrence from the applicant's and parent company's presiding officers, and a statement from the parent company accepting legal responsibility for the applicant's obligations and liabilities.
• Applicants must disclose details of any prior refusal/revocation of financial authorisations, insolvency events, changes of bankers/legal advisers/auditors, and any convictions or regulatory/civil/criminal proceedings involving the applicant, its parent company, or its principals.
• A Restricted Licence applicant must undertake not to carry on mutual fund administration business for funds other than those named in the application.
• Applicants must undertake to disclose to the Authority any changes material to the application while it is under consideration by the Governor in Council.

Applies to

mutual fund administrators, applicants for a Mutual Fund Administrators Licence