The Cayman Islands Monetary Authority (CIMA) has released an updated ‘Rule on Corporate Governance for Regulated Entities’ (hereinafter referred to as the “Rule1”) and an associated ‘Statement of Guidance Corporate Governance – Mutual Funds and Private Funds’ (hereinafter referred to as the “SOG2”), both effective from 14 October 2023.
These regulatory updates have been issued to enhance the corporate governance standards for Regulated Funds registered with and regulated by CIMA.
Non-compliance with these regulations can result in penalties against both your fund and its operators. It is crucial for your organization to understand and implement these changes effectively to ensure compliance with the new requirements.
The new regulations include:
- The SOG extends to all regulated mutual funds and private funds under the Mutual Funds Act and the Private Funds Act.
- The SOG provides recommendations and expectations for Operators, including the oversight function, conflicts of interest, operator meetings, duties of operators, documentation, relations with CIMA, and risk management.
What do these updates cover?
Click here to download our full summary on these updates as well as a checklist for enhancing corporate governance.
