Private Funds Act (2025 Revision)
The legislation governing the registration and supervision of closed-ended investment funds in the Cayman Islands.
Private_Funds_Act_(2025_Revision).pdf, Private_Funds_(Fees)_(Amendment)Regulations, 2025.pdf, Private_Funds(Annual_Returns)(Amendment)_Regulations, _2025.pdf
2026-04-27
The Private Funds Act applies to "private funds," which are entities that pool investor funds and issue "investment interests" that are not redeemable at the option of the investor (closed-ended).
Registration Requirements: Private funds must submit an application for registration to cima within 21 days of accepting capital commitments from investors.
Operating Conditions: The Act imposes several ongoing requirements to ensure investor protection:
- Annual Audit: Accounts must be audited annually by a CIMA-approved auditor.
- Valuation: Must have consistent procedures for the proper valuation of assets, performed at least annually.
- Safekeeping of Assets: A custodian must be appointed to hold fund assets, unless cima determines it is not practical or proportionate.
- Cash Monitoring: A person (e.g., the administrator or custodian) must be appointed to monitor the fund's cash flows.
- Identification of Securities: Funds that regularly trade securities must maintain records of the relevant identification codes (e.g., ISIN).
Fees and Annual Returns (2025 Updates)
As of late 2025, the annual registration fee for a private fund was increased (source: Private_Funds_(Fees)_(Amendment)_Regulations,_2025.pdf).
- Base Annual Registration Fee: $4,125.
- Alternative Investment Vehicles (AIVs): An additional $525 per AIV.
- Segregated Portfolios: An additional $525 per segregated portfolio (if the fund is an SPC).
- Separate Accounts: An additional $525 for each class of shares/units/interests for which individually presented separate accounts are maintained.