Private Funds (Savings and Transitional Provisions) Regulations, 2020 (SL 5 of 2020)

Summary

This is a short set of transitional regulations made under the Private Funds Law, 2020 (Law 1 of 2020), which introduced registration and regulatory requirements for Cayman Islands private funds (e.g. private equity-style closed-ended funds). Rather than imposing new substantive rules, these Regulations give existing and newly-formed private funds a grace period before they must comply with the new Private Funds Law.

• Who qualifies: A private fund that began carrying on business in or from the Cayman Islands within six months of the Private Funds Law, 2020 coming into force, or that was already carrying on business immediately before that Law commenced.
• Transitional window: Such a fund may continue operating without complying with the Private Funds Law until 7 August 2020, or such later date as CIMA may specify.
• Effect: During this window, private funds did not need to be registered with, or otherwise satisfy the requirements of, CIMA under the new Law.

The Regulations are procedural/transitional in nature: they do not create ongoing compliance obligations themselves but instead delay the point at which the substantive obligations of the Private Funds Law, 2020 (such as registration with CIMA) start to bite for funds falling within the described transitional categories.

Key obligations

• Private funds relying on the transitional period must come into compliance with the Private Funds Law, 2020 (including any registration requirements) by 7th August, 2020, unless CIMA specifies a further extended period.

Applies to

private funds

Deadlines

• 7th August, 2020: Deadline by which a private fund that started business during the six-month transitional window, or was already operating before commencement of the Private Funds Law, 2020, must comply with that Law, unless CIMA specifies a further period.
• period of six months beginning on the date of commencement of the Private Funds Law, 2020: Window during which a newly formed private fund could begin carrying on business without complying with the Private Funds Law, 2020, and still benefit from the transitional relief.