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On 8 January, after a period of industry consultation, the Cayman Islands Government issued the Private Funds Bill 2020 (the “Private Funds Bill”) and the Mutual Funds (Amendment) Bill 2020 (the “Mutual Funds Bill” and together with the Private Funds Bill, the “Bills”). The Bills are not yet law and will be considered for enactment at the 30 January 2020 meeting of the Cayman Islands Legislative Assembly.
The aim of the Bills is to bring within the scope of regulation closed-ended and private funds which are currently beyond the scope of the Mutual Funds Law (2019 Revision) (the “Mutual Funds Law”) and to modernise the regulation of both open-ended and closed-ended funds. The intended result is to align the Cayman Islands’ funds regulatory regime with best international market practice and to ensure compliance with enhanced anti-money laundering and other applicable local and international regulatory standards. Several key features of the Bills are to be confirmed in regulations or guidelines yet to be published by the Cayman Islands Government. We will supplement this Alert with such additional details as they become available.
The Private Funds Bill provides for the registration and regulation of most closed-ended funds formed in the Cayman Islands and sets out the supervisory and enforcement powers of the Cayman Islands Monetary Authority (CIMA) in relation to such funds. The Private Funds Bill does not impact open-ended funds which have already been registered with CIMA under the Mutual Funds Law.
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The Private Funds Bill 2020 and Mutual Funds (Amendment) Bill 2020