Mutual Funds

Audited Financial Statements and Fund Annual Return

The Fund Annual Return (FAR) Form version 4.0 (FAR-016-22-04) and the updated Completion Guide were released on 27 November 2020. This updated FAR Form 4.0 will replace the previous version, FAR Form 3.0 (FAR-016-22-03), which was introduced on 14 June 2016.

Several sections of FAR Form 4.0 have been revised to gather additional information as outlined in the Mutual Funds (Annual Returns) (Amendment) Regulations, 2020. The corresponding sections in the Completion Guide have also been updated to clarify the reporting requirements under these sections.

FAR Form 4.0 must be completed and submitted for funds with a financial year-end of 30 June 2020 or later.

FAR Form 3.0 should be used for funds with a financial year-end before 30 June 2020.

All FAR Forms can be accessed here.

Reporting Documents

All funds regulated under the Cayman Islands’ Mutual Funds Act (as revised) are required to submit the following documents covering the fund’s financial year within six months of the financial year-end:

• Audited annual accounts (audited financial statements or AFS) as required by Section 8(2) of the Mutual Funds Act.
• The FAR Form, which is the official document used by fund operators to report general, operational, and financial information about the fund. The submission of an annual return is mandated by the Mutual Funds (Annual Returns) Regulations, which also requires payment of a fee at the time of submission.

These documents must be submitted electronically through Cmrai electronic reporting system as detailed below.

E-Reporting and REEFS for Regulated Mutual Funds

To facilitate compliance with the annual return submission requirements, Cmrai has implemented the FAR Form for fund operators to complete and electronic reporting systems to submit the FAR and audited financial statements. Currently, two systems are in use: the older E-Reporting system and the newer Regulatory Enhanced Electronic Forms Submission ("REEFS") system.

Fund Annual Return (FAR)

The latest mutual fund FAR Form is available here.

Who Completes and Files the FAR

The fund operator is responsible for ensuring that the FAR is accurately and completely filled out and submitted to Cmrai.

Completion Guide & Guidance Notes

• The Completion Guide for the New Mutual Fund Annual Return provides instructions for completing FAR Form 4.0, which is required for filings in REEFS for regulated funds with a year-end date of 30 June 2020 and later.
• The Completion Guide for the Mutual Fund Annual Return provides instructions for completing the FAR for filings in REEFS for regulated funds with a year-end date between 15 September 2015 and 30 June 2020.
• The Guidance Notes and Directions to Completing the Fund Annual Return explains how to complete the FAR used in the E-Reporting system. Comment boxes have been added in the REEFS Excel FAR form to assist with form completion.
• Instructions for local auditors on how to file the FAR and the fund's annual account can be found in:
  1. New Auditor Guidance on Filing Audited Accounts and Annual Returns for Regulated Funds
  2. Auditor Guidance on Filing Audited Accounts and Annual Returns for Regulated Funds

If you need further information regarding mutual fund FAR filings, please contact Cmrai.

Private Funds

Audited Financial Statements and Fund Annual Return

The Fund Annual Return (“FAR”) form for Private Funds, along with the related Completion Guide, was released on 9 July 2021. The audited financial accounts and FAR for Private Funds must be completed and submitted via the REEFS system.

Reporting Documents

All funds regulated under the Private Funds Act (as revised) must submit the following documents within six months of the fund’s financial year-end:

• Audited annual accounts (audited financial statements or AFS) as required by Section 13(4) of the Private Funds Act.
• The Private Fund FAR form, duly completed and submitted via REEFS. For financial year-ends up to 30 November 2021, form PFR-49-77 is required. For all year-ends thereafter (i.e., 31 December 2021 and onwards), form PFR-049-77-02 is required, which combines the initial form PFR-049-77 and the Related Fund Entity form (RFE-050-77). The submission of an annual return is mandated by the Private Funds (Annual Returns) Regulations, which also requires payment of a fee at the time of submission.
• The Related Fund Entity form (RFE-050-77), duly completed and submitted via REEFS. This form is required only for financial year-ends up to 30 November 2021. For later year-ends, it has been integrated into the updated Private Fund FAR form (PFR-049-77-02).

These documents must be submitted electronically through REEFS as described below.

Fund Annual Return (FAR)

The Private Fund FAR must be submitted through REEFS using form PFR-049-77 or PFR-049-77-02. A downloadable Excel version of the Private Fund FAR form can be obtained from designated submitters here.

Who Completes and Files the FAR

Operators of funds regulated under the Private Funds Act are responsible for ensuring the FAR is accurately completed and submitted to Cmrai.

Operators may delegate the submission of the FAR to a local Cayman Islands service provider (“designated submitter”), including Cmrai-approved Cayman Islands audit firms. However, operators remain legally responsible for the accuracy and completeness of the FAR submitted. The designated submitter is responsible for submitting the FAR and other required documents to Cmrai.

Completion Guide

The Completion Guide provides instructions for completing the Private Fund FAR form:

• Completion Guide for the Private Fund Annual Return for form PFR-049-77 (for year-ends up to 30 November 2021)
• Completion Guide for the Private Fund Annual Return for form PFR-049-77-02 (for year-ends of 31 December 2021 and beyond)

Related Fund Entity Form (RFE Form)

The RFE Form is designed to report specific information regarding related fund entities as required by the Private Funds (Annual Returns) Regulations, 2021. The Completion Guide explains how to complete the RFE Form (RFE-050-77). The RFE Form is only required for financial year-ends up to 30 November 2021. For year-ends of 31 December 2021 and beyond, the updated Private Fund FAR form (PFR-049-77-02) consolidates the reporting requirements, eliminating the need for a separate RFE Form.

If you need further information regarding private fund FAR filings, please contact Cmrai.

 

Waivers/Exemptions & Extensions

In certain cases, fund operators may apply to Cmrai for a waiver/exemption of the filing requirement or for an extension of the deadline by which documents must be filed.

Submitting Requests

All waiver/exemption requests (for both mutual and private funds), as well as private fund filing extension requests, must be submitted in writing to Cmrai via email.

Requests for mutual fund extensions must be submitted via the REEFS system using form FXT-162-22.

Cmrai will review extension requests according to its ‘Procedure for the Granting of Extensions for the Filing of Supervisory Reports’ (See Regulatory Handbook Appendices, section F2) and assess waiver/exemption requests according to the Audit Waiver Policy. For funds that are terminating, Cmrai will determine whether an affidavit, liquidator’s report, or other procedures can replace the audit. The operator will be notified of the decision in writing.

Fee for Waivers/Exemptions or Extensions