Further to announcements made in June 2011, the Cayman Islands Government is preparing legislation to require certain master funds to be registered. It is expected that new requirements will apply to all mutual funds that are incorporated or established in the Cayman Islands which hold investments and conduct trading activities and have one or more regulated feeder funds. Whilst not expected to be onerous, the registration requirements are likely to include the annual filing of a new form and payment of an annual fee of approximately US$3,000 (which is double the amount proposed when the provisions were originally announced).