The Mutual Funds Bill is a new legislation that the Cayman Islands is planning to introduce, the bill is viewed as the one that will ensure that mutual funds with 15 or lesser investors must register and file the funds’ operators financial returns annually with the Cayman Islands Monetary Authority while financial regulators under the Private Funds Bill will take care of the registration of the private or closed-ended funds. The new legislation will afford the investors and managers of Cayman Islands investment funds enhanced surety and transparency.
The bill also empowers CIMA to enforce special measures against any private fund perceived to have breached its obligations under the law. A fine of $100,000 is slammed on any investment that intentionally provides false or misleading information. |Some of the proposed changes in the Mutual Funds Bill are made in reaction to worries over Cayman’s regime for collective investment vehicles in relation to the economic substance. This effort is being made by the Cayman Islands in order to avoid being blacklisted by the EU when it comes to cooperation in tax matters.
