The Cayman Islands Private Funds Bill Registration Deadline is August 7, 2020

By Paul Whelan Managing Director
CSC Global Financial Markets | Depositary Services
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The Cayman Islands recently enacted The Private Funds Law (PFL) 2020 that imposes a number of obligations on private funds domiciled in the Cayman Islands and requires such funds to register with the Cayman Islands Monetary Authority (CIMA) by August 7, 2020. In addition, on July 7, 2020, the Cayman Islands Government amended the PFL by changing the definition of a ‘private fund’ thus broadening the scope of funds captured under the PFL.

The PFL requires additional oversight that your fund administrator may not be able to perform, therefore using the expertise of European depositary firm, that is familiar with discharging the obligations of the PFL, is an excellent solution.

There are a number of operational requirements that fund managers must adhere to, including:

• – Appointing a custodian to safe keep custodial assets in segregated accounts
• – Verifying ownership and maintaining a register of all non-custody assets owned by the fund
• – Maintaining a record of the identification codes of the securities
• – Appropriately and consistently providing valuation of fund assets
• – Monitoring cash flows through fund cash accounts
• – Submitting annual accounts audited by a Cayman-based audit firm to CIMA within six months of year end

How CSC can help

CSC provides cash-flow monitoring, asset verification, and oversight of fund valuation through our Depositary services division, which operates independently and in conjunction with our Global Fund Administration services. We have partnered with a leading Cayman Islands Law firm, to get your registration completed by the deadline.

Experience matters

CSC is uniquely positioned with expertise and services to help you with the CIMA rules and theCayman Islands’ fund anti-money laundering (AML) officer duties. We work with you to implement solutions to meet these regulatory requirements in a flexible, pragmatic, and cost effective manner. We provide solutions that fit seamlessly with your current operations infrastructure.

What makes us unique

• – Private and stable ownership
• – Exceptional service quality
• – Innovative and integrated technology solutions:
• – FIS Investran, PFS Paxus
• – Proprietary client portal
• – Depositary money monitor

To learn more, contact our head of Depositary Services, Paul Whelan, at paul.whelan@cscgfm.com.