Cayman Island Monetary Authority Updates FAQs Regarding Alternative Investment Vehicles Registration

August 17th | 2020

The Cayman Island Monetary Authority (CIMA) recently updated its FAQs regarding Alternative Investment Vehicles (AIVs) registration and audit requirements. The update clarifies, among other things, that a Cayman AIV that meets the definition of a Private Fund will be required to register under the PFL as a stand-alone Private Fund even if they are under a non-CIMA registered main fund.

Additionally, just like any other Private Fund, AIVs falling under a non-CIMA registered fund are required to have its accounts audited annually by an auditor approved by CIMA. The Private Fund/AIV is also required to submit its audited accounts, along with the Fund Annual Return (“FAR”), to CIMA within six months of the end of each financial year.

The Private Fund/AIVs can submit its own stand-alone financial statements annually, which have been signed-off by an auditor approved by CIMA, along with the FAR; or they can submit the consolidated financial statements of the non-CIMA registered main fund and FAR subject to the same auditor and timing requirements. Their FAQs also address Private Fund/AIVs that are in a structure that includes other Cayman AIVs, which have been individually registered as private funds.

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