Our Offshore Lawyers Worldwide Anguilla Sao Paulo British Virgin Islands Cayman Islands Cyprus Vancouver Hong Kong London Montevideo Singapore Tokyo Shanghai Bermuda
English
Русский
Português
Español
简体中文

Guides

Reference materials detailing key laws

Updated Policy on Audit Waivers for Cayman Funds

27 June 2016




Following industry consultation in early 2016, the Cayman Islands Monetary Authority (CIMA) has published an updated policy on exemptions from the annual audit requirement for regulated Cayman Islands investment funds (the Policy). The Policy clarifies CIMA’s existing approach on granting exemptions in various situations and introduces new circumstances when an exemption may be available. 

When does the Policy apply?

The Policy applies to investment funds which are regulated by CIMA as an administered fund, a licensed fund or a fund registered under section 4(3) of the Mutual Funds Law (Revised) which is the most common type of Cayman Islands investment fund registered with CIMA. Under the Mutual Funds Law, those funds must have their financial accounts audited annually and file them with CIMA within six months of the financial year end, or such extended period as CIMA may allow, and CIMA may also exempt regulated funds from the obligation to file audited accounts in certain circumstances. 

In what circumstances may an exemption be granted? 

Under the Policy CIMA will consider granting an audit exemption under the following new circumstances:

CIMA may also grant an exemption from the audit requirement in other exceptional circumstances in its absolute discretion, on submission of such information as CIMA may request. 

The Policy confirms that funds can continue to apply for audit exemptions:  The requirements for applying for an exemption in some of these existing circumstances have been amended and clarified.

Any exemption application is considered by CIMA on a case-by-case basis and on payment by the fund of a fee of US$610, with the Policy setting out the documentation required in different circumstances.

Extensions

The Policy confirms that CIMA will consider extending a fund’s first audit period for a maximum of 18 months from the date of registration, and introduces the option of applying for an extension for a fund’s last audit period for a maximum of 18 months from the date of the last financial year for which an audit has been filed. 

The Policy provides a welcome expansion of the circumstances when a fund can apply for an exemption from the annual audit requirement, as well as much needed clarity, demonstrating CIMA’s continued responsiveness to feedback from the funds industry in its policy making. 

For more information and key contacts please visit www.harneys.com/funds.