Briefing - Proposed Regulation of Closed Ended

The Cayman Islands Private Funds Bill 2020 (the “Bill”) was published on 8 January 2020 and, if enacted in its current form will require that certain closed ended funds apply to the Cayman Islands Monetary Authority (“CIMA”) for registration and as part of that registration process disclose the categories of their target investors and assets. Once registered those funds will be subject to ongoing risk based monitoring on the basis of their risk profiles as assessed by CIMA and will be required to:

• make annual filings including filing of audited accounts;

• value their assets in accordance with accounting principles of non-high risk jurisdictions;

• appoint a custodian or other specified party to hold and verify title to certain assets;

• appoint an administrator or other specified party to monitor cash flows; and

• keep records of the identification codes of certain assets which they hold or trade.

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