By Nicola Cowan From DMS Offshore Investment Services

Transition Period for CIMA New Rule

In March 2015, the Cayman Islands Monetary Authority (CIMA) issued a new Rule regarding the cancellation of a licence or certificate of registration of regulated mutual funds, which was to take effect on March 31, 2015.

At the time, CIMA also outlined a new Regulatory Procedure for complying with the new Rule and confirming the documentary evidence that a regulated fund is required to provide to “demonstrate that it has not been, or is not being, wound up, transferred or otherwise ceasing business as a licenced or registered Fund in a manner that is prejudicial to its investors and creditors.”

Since then, and following industry feedback and consultation, CIMA agreed to introduce a transition period for the implementation of the new Rule, which will now apply to deregistration applications made as of October 1st 2015.

Understanding the New Rule
See attachment new rule 1

Under What Circumstances Does the New Rule Apply?
See attachment new rule 2

Core Requirements: Payment and Document Submission
See attachment new rule 41

Details of the reasons for cancellation and respective documents required are outlined here at: http://dmsoffshore.com/documents/2015/09/rule-cancellation.pdf

What Changes with the New Rule?

See attachment new rules 6 & 7

KEY DATES TO NOTE

CIMA

October 1, 2015
CIMA New Rule and Regulatory Procedure takes effect for cancellation of licence or certificate of registration.

December 31, 2015 (by 12 p.m.)
Deadline to fully deregister a Fund. No 2016 fees payable, if CIMA is provided with all documents required for full deregistration.

Deadline to place Fund into Licence Under Termination.
Half of 2016 fees payable, if CIMA is provided with all documents required for LUT.

Deadline to place Fund into Licence Under Liquidation.
No 2016 fees payable, if CIMA is provided with all documents required for LUL.

Registrar of Companies

December 22, 2015 (by 12 p.m.)
Extraordinary Gazette deadline to appoint Voluntary Liquidator if a Voluntary Liquidation is to conclude by January 29, 2015. No 2016 Registrar of Companies fees payable if final Liquidation meeting held on/before January 29, 2016.

January 29, 2016
If the Fund is still in existence on this date (even if it is in Voluntary Liquidation), 2016 annual Registrar of Companies fees will be incurred in full.

View all dates at: http://dmsoffshore.com/documents/2015/09/liquidation-dates.pdf

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