As we approach the end of 2015, now is the time to start planning the liquidation of Cayman Islands entities that have reached the end of their life cycle to ensure that unnecessary 2016 fees are not incurred.
In order to prevent the expense of annual 2016 government registration fees, an appointed liquidator will be required to hold the final general meeting for a company or file the final dissolution notice for an exempted limited partnership on or before 29 January 2016. Furthermore funds that are registered with the Cayman Islands Monetary Authority("CIMA") pursuant to the Mutual Funds Law (2015 Revision) ("Funds") will need to complete these steps by 31 December 2015 if they are to avoid their 2016 annual CIMA license fee.
Consideration for Funds should be given to CIMA’s new Rule and Regulatory Procedure relating to the cancellation of a licence or certificate of registration.
Information on CIMA's Rule and Regulatory Procedure, which will come into effect on 1 October 2015, is contained in Maples and Calder’s recent update of 15 July 2015, CIMA Practice Updates: Mutual Fund Deregistration and Filings.
CIMA’s policy on granting partial year audit waivers for terminating Funds remains that they will be considered on a case by case basis. We generally recommend that Funds that wish to be considered for a partial year audit waiver should commence their de-registration process and apply for and seek confirmation of a waiver as early as possible (ideally prior to 1 October 2015). If a request for an audit waiver is not granted, the Fund will need to allow for this, both in terms of the time required to prepare and submit the audited financials as well as the associated costs.