Investment Funds
Summary
The collective regulatory framework for both open-ended (mutual) and closed-ended (private) funds in the Cayman Islands.
Sources
Mutual_Funds_Act_(2025_Revision).pdf, Private_Funds_Act_(2025_Revision).pdf, Private_Funds_Regulations_(2022_Revision).pdf, Mutual_Funds_(Fees)_(Amendment)Regulations, 2025.pdf, Private_Funds(Fees)(Amendment)_Regulations, _2025.pdf
Last Updated
2026-04-27
The Cayman Islands is a leading global jurisdiction for investment funds. The regulatory landscape is split based on the nature of the investor's right to withdraw their capital:
| Feature | mutual-funds-act-2025 | private-funds-act-2025 |
|---|---|---|
| Redemption | Open-ended (at investor's option) | Closed-ended (not at investor's option) |
| Interest Type | Equity Interests | Investment Interests |
| CIMA Requirement | Licence or Registration | Registration |
| Annual Audit | Yes (CIMA-approved auditor) | Yes (CIMA-approved auditor) |
| Annual Return | Yes | Yes |
Key Regulatory Concepts:
- Director Registration: All directors of regulated mutual funds (and registered private funds where applicable under the directors-registration-and-licensing-act-2014) must be registered or licensed with CIMA. See directors-registration for details.
- Pooling of Funds: Both regimes require the "pooling" of investor funds to fall under the Acts.
- Approved Auditors: cima maintains a list of approved local audit firms permitted to sign off on fund accounts.
- Asset Protection: The Private Funds Act includes specific statutory requirements for asset valuation, custody, and cash monitoring that are not explicitly detailed in the Mutual Funds Act (though often followed as best practice).
- Latest Fee Updates (2025): Annual base registration fees for both mutual-funds-act-2025 and private-funds-act-2025 entities were increased to $4,125 in 2025. Private funds also face a $525 fee for each alternative investment vehicle (AIV) or segregated portfolio. Additionally, the separate fees previously required for the submission of the annual return were explicitly repealed for both mutual and private funds (source: mutual-funds-annual-returns-amendment-regulations-2025, private-funds-annual-returns-amendment-regulations-2025).
Private Fund Specifics
The private-funds-regulations-2022 (source: raw/Private_Funds_Regulations_(2022_Revision).pdf) introduce further requirements for private funds:
- Private funds structured as "Restricted Scope Private Funds" (ELPs managed by licensed persons for non-retail investors) are specifically defined.
- If a private fund has not yet received capital contributions for investment purposes, its operator must file a formal declaration with cima within six months of the financial year-end to remain exempt from Part 3 of the Act (valuation, custody, cash monitoring).