As at 7 February 2020 (the "Commencement Date"), the exemption from registration for Limited Investor Funds i.e. funds which have its equity interests held by fifteen (15) or fewer investors, a majority of which have the ability to appoint or remove the fund's operators1, was removed following the passage of the Mutual Funds (Amendment) Law, 2020 of the Cayman Islands (the "Amendment Law").
Existing Limited Investor Funds will have until 7 August 2020 to comply with the registration requirements of the Amendment Law. Limited Investor Funds which will begin carrying on business after the Commencement Date (7 February 2020), will be required to comply with the new requirements immediately.
Limited Investor Funds must now:
(i) register with the Cayman Islands Monetary Authority (CIMA);
(ii) pay an annual registration fee2;
(iii) file copies of the fund's constitutional documents with CIMA which show that a majority of the holders of equity interests have the ability to appoint or remove the fund's operators;
