by Victor Murray MG management Ltd

The Cayman Islands Government as a result of ongoing discussions with the U.K. Foreign and Commonwealth Office have developed new regulatory requirements and fee increases for the Cayman Islands financial industry. However, for the first time they have proposed an extraterritorial regulatory regime for foreign administrators to Cayman Islands funds.

The below is a summary of the proposals and the fees that will effect administrators not located in the Cayman Islands.

Non- Resident Mutual Fund Administrator’s Licence

For the first time administrators with the Cayman Islands will have to obtain a Licence with CIMA and pay the same fees as a licensed administrator located in the Cayman Islands. CI$30,000 (up to 49 mutual funds) or CI$35,000 (over 50 funds).

Mutual Fund Fee increase

The typical fund registered with the Cayman Islands Monetary Authority (“CIMA“) is a MF1 type fund which previously paid CI$3,000 (US$3,659) per year will now pay CI$3,500 (US$4,269).

Cayman Islands Administrator Licence Fee increase

A CIMA licensed mutual fund administrator will pay and annual Licence fee of either CI$30,000/US$36,585 (up to 49 mutual funds) or CI$35,000/US$42,682 (over 50 funds).

Registrar of Companies Fee Increase

The annual fees for the Registrar of Companies have been increase from CI$600 (US$731) to CI$675 (US$823) for share capital up to US$50,000.

Registered Office fee for Trustees in the Cayman Islands

A new fee for licensed Trustees in the Cayman Islands has been proposed so that they will have to pay a fee of CI$100 (US$122) for each client that they provide registered office to.

Per client fee for Company Managers and Corporate Service providers in the Cayman Islands

The per client fee payable in addition to the annual Licence fee has been increased for Company Managers from CI$50 to CI$100 (US$122) and CI$25 to CI$50 (US$61) for corporate service providers.

Partnership fee increase

The annual fees for the Registrar of Exempted Limited Partnerships will increase from CI$750 (US$915) to CI$1,200 (US$1,463).

The Securities Investment Business Law fee increase

The under the Securities Investment Business Law (“SIBL”) which regulates entities incorporated as managers to investment funds, the majority of whom exempt from obtaining a license and are known as an ‘excluded person‘.  The SIBL Excluded Person fee payable to CIMA will increase from US$4,269 to US$6,100.

Summary of typical fees 2013

Below is are the typical new fees to be paid by a CIMA registered fund:

Fee detail                                    2012 fees                              2013 fees

CIMA                                          CI$3,000 (US$3,659)                CI$3,500 (US$4,269)

Registrar of Companies           CI$600 (US$731)                      CI$675 (US$823

CI$3,600 (US$4,390)              CI$4,175 (US$5,091)

ABOUT THE AUTHOR: Victor Murray is an independent accredited director at Management Ltd. who is resident in the Cayman Islands and he is an Executive Committee member of the Cayman Islands Directors Association. He is admitted as a Lawyer in New York and as a solicitor in Scotland. He has considerable offshore fund experience as in-house counsel for Citco and thereafter as a director or many hedge funds.

Contact details:

Victor Murray
[email protected]
345 749 8181
www.mgcayman.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.