Mutual Funds Act (2025 Revision)
Summary
The primary legislation for the regulation of open-ended investment funds in the Cayman Islands.
Sources
Mutual_Funds_Act_(2025_Revision).pdf, Mutual_Funds_(Fees)_(Amendment)Regulations, 2025.pdf, Mutual_Funds(Annual_Returns)(Amendment)_Regulations, _2025.pdf
Last Updated
2026-04-27
The Mutual Funds Act regulates "mutual funds," which are entities that pool investor funds and issue "equity interests" that are redeemable or purchasable at the option of the investor.
Regulatory Categories:
- Licensed Mutual Funds: Require a specific licence from cima, typically for retail-oriented funds.
- Administered Mutual Funds: Have a licensed mutual fund administrator providing their principal office in the Islands.
- Registered Mutual Funds: The most common category, including funds with a minimum initial investment of $80,000 (Section 4(3) funds) and "limited investor funds" (15 or fewer investors).
Compliance Obligations:
- Annual Audit: Funds must have their accounts audited annually by a CIMA-approved auditor.
- Annual Return: Funds must file an annual return (FAR) and pay a prescribed registration fee to cima.
- Offering Document: Must maintain a current offering document that describes the equity interests in all material respects.
Fees and Annual Returns (2025 Updates)
As of late 2025, several fees for mutual funds have been increased (source: Mutual_Funds_(Fees)_(Amendment)_Regulations,_2025.pdf):
- Annual Registration Fee: $4,125 (for most Licensed, Registered, and Master Funds).
- Limited Investor Funds (Section 4(4)): $3,075.
- Administrative Fee: The fee for filing/processing returns is $750.
Fees are generally due by January 15th each year.