The Cayman Islands Monetary Authority (“CIMA”) have released the Fund Annual Return (“FAR”) for all regulated Private Funds.
Private Funds
On 7 February 2020 the Cayman Islands enacted the Private Funds Act, 2020, which established a regime for the registration and ongoing regulation of closed-ended funds (private funds).
The Cayman Islands continues to be at the forefront of adoption of global best practices in the funds industry. The regulation of closed-ended funds reflects the Cayman Islands’ commitment to implementing governance principles laid out by the EU, the OECD and other international organisations.
Filing requirements for regulated Private Funds.
Operators of all funds regulated under the Private Funds Act (as revised) are responsible for the completion and submission of the FAR to CIMA within six months of the regulated fund’s year end. (Note, CIMA have provided a blanket filing extension to September 30, 2021 for all regulated Private Funds with a financial year-end before March 31, 2021).
The audited financial accounts and FAR are completed and submitted via CIMA’s Regulatory Enhanced Electronic Forms Submission (REEFS) system.
The submission includes:
the FAR form
the audited financial statements
the Operator Declaration.
The FAR form is a document used by CIMA to collect year-end financial, identification and other general information on regulated funds.
The Operator Declaration must be signed by one of the “Operators” of the regulated Private Fund. The declaration confirms that the fund has complied with sections 16 (valuation), 17 (safekeeping of assets) and 18 (cash monitoring) of the Private Funds Act.
The Operators are defined as the Directors of a fund that is a company, the General Partners of a fund that is a partnership and the Trustee of a fund that is a unit trust.
Steps to file the FAR:
The investment manager or administrator prepares the FAR Form.
One of the fund’s Operators reviews and approves the FAR form and signs the Operator Declaration.
The auditor will submit the FAR form, Operator Declaration and audited financial statements on the REEFS system. The operator of the regulated fund is responsible for the accuracy and completion of the FAR.
For further information on the requirements to file the FAR or any other Cayman fund requirements, then please feel free to contact us: info@bellrockgroup.com
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