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The regulatory responsibility for the administered mutual fund which has more than 15 investors and which is not a licensed or registered mutual fund is placed largely in the hands of the licensed administrator who must apply the statutory test as described under Licensed Mutual Funds.
- The administrator in responsible for and must pay the initial and annual government fees.
- The fund’s offering memorandum and completed registration form (MF2) must be submitted to the Cayman Islands Monetary Authority, as well as any subsequent material changes.
- Also required is form MF2A whereby the mutual fund designated its principal office in Cayman to be at the office of the licensed mutual fund administrator.
- The mutual fund administrator is required by law to report to the Cayman Islands Monetary Authority if there is reason to believe that the fund, or the promoter of any fund for which they provide the principal office, has problems as specified under “Powers of the Monetary Authority”.
The concept of private sector regulation is taken beyond the initial registration stage with respect to the administered regulated mutual fund.