Declaration required for a private fund that has not received capital contributions from investors
A private fund that has not yet received capital contributions from investors is not required to file audited accounts or returns with CIMA. A recent amendment to the regulations now requires the operator of such a private fund to make a simple declaration to this effect.
This declaration must be filed with CIMA within 6 months of the financial year end of the private fund. For a private fund that registered with CIMA in 2020 and has a 31 December financial year end, the declaration is due by 30 June 2021.
Private fund annual return and declaration now available
The information that must be submitted to CIMA by a private fund in its annual return has now been finalised, as the necessary regulations were passed recently.
The private fund annual return is similar to the Fund Annual Return (FAR) currently filed by mutual funds. However, in addition, the operator of a private fund must declare the private fund is in compliance with the valuation, safekeeping and cash monitoring requirements of the Private Funds Act. (These are requirements for all private funds except those that have not received capital contributions from investors.)
The annual return must be filed with CIMA within 6 months of the financial year end of the private fund. The filing fee is US$360 plus US$60 for each AIV and subfund (up to a maximum of 25).
For copies of the declaration or annual return or to discuss the requirements set out in any of these new regulations please contact your usual Harneys representative. If you have any other questions, visit harneys.com/Cayman.