Key Considerations for Regulated Cayman Funds Entering Voluntary Liquidation

CIMA’s Role in the Liquidation of Regulated Funds

Regulated funds must address both statutory and regulatory obligations during a voluntary liquidation. The Cayman Islands Monetary Authority (CIMA) maintains oversight until the fund is officially deregistered.

What Fund Directors Must Address

Many assume regulatory obligations end with the appointment of a liquidator. In reality, directors and service providers must continue managing compliance until CIMA confirms deregistration.

Key obligations include:

• Final NAV and Audit
  A final net asset value (NAV) must be struck and a concluding audit prepared. Timing and coordination with the administrator and auditor are essential.
• CIMA Notification and Deregistration
  Formal notification of the liquidation must be submitted to CIMA. Deregistration forms, final confirmations, and payment of deregistration fees are required.
• Outstanding Fees and Tax Reporting
  All outstanding CIMA fees must be settled. Where relevant, tax filings may need to be completed in multiple jurisdictions before final closure.

Pre-Liquidation Preparations

Before initiating the liquidation, it is important to:

• Review the fund’s offering documents and constitutional terms to confirm rights to suspend or strike NAV
• Ensure financial records and management accounts are current
• Engage the audit firm early to agree a timeline for the final audit

Final Thoughts

CIMA-regulated funds require active coordination during liquidation. Ensuring audit readiness, regulatory filings, and clear communication with CIMA can significantly reduce delays and avoid compliance gaps during the wind-down process.