UPDATE: REPORTING REQUIREMENTS FOR PRIVATE FUNDS

Monday July 19th, 2021

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UPDATE: REPORTING REQUIREMENTS FOR PRIVATE FUNDS

All funds regulated under the Private Funds Act (2021) (the “Act”) are required to submit the following within six months of the fund’s financial year end:

Audited annual accounts/ audited financial statements.
Fund Annual Return form PRF-049-77 (the “FAR”).
Declaration

FAR

The FAR was introduced under the Private Funds (Annual Returns) Regulations, 2021 (the “Regulations”) and was released with a Completion Guide by the Cayman Islands Monetary Authority (“CIMA”) on 9 July 2021. The FAR requires operating and financial information with respect to:

(a) each alternative investment vehicle of the private fund, unless such alternative investment vehicle (“AIV”) is itself registered as a private fund; and

(b) each sub-fund of the private fund.

With respect to private funds only, the FAR includes general information on the funds including, its service providers, operating structure, domicile of investors and other details.

Under Act, the operator of the fund has primary responsibility for ensuring the accuracy and completeness of the FAR but may delegate the submission of the FAR to a local Cayman Islands service provider, including a CIMA-approved Cayman Islands auditor.

Filing Fees

The FAR filing fee is US$365.85 and an additional amount of US$182.92 for each AIV or sub-fund.

Extension of filing deadline

Based on the delay with issuing the FAR, CIMA has advised that the 30 June 2021 deadline for filing audited financial statements and FARs for private funds with a 31 December 2020 financial year, has been extended to 30 September 2021.

Declaration

In accordance with the Regulations, a private fund which has received capital contributions for the purpose of investment on behalf of the private fund shall provide in the FAR that the private fund has complied with valuation, safekeeping of fund assets and cash monitoring requirements under the Act.

A private fund which has NOT received capital contributions during a financial year is required to file a declaration to that effect within six months of the fund’s financial year end.

The FAR and other required documents must be submitted to CIMA via REEF (Regulatory Enhanced Electronic Forms Submission).

Contact Francine.Bryce@bransens.com or Jo-Anne.Stephens@bransens.com for further information.

Please note that this briefing is intended to provide a very general overview of the matters to which it relates and is not intended as legal advice and should not be relied upon as such.