Licensing of Mutual Fund Administrator in the Cayman Islands

The Cayman Islands is one of the best offshore jurisdictions in which to establish a mutual fund. It also boasts the presence of sophisticated and professional service providers, mutual fund administrators, who are well-versed in the nuances of the fund industry. According to the Cayman Islands Monetary Authority (CIMA), up to March 31st, 2019, the Caymans have registered 10,916 mutual funds, and have licensed 85 mutual fund administrators (73 Full, 11 Restricted, 1 Exempted.) Compared to 108 mutual fund

administrators for the fiscal year ending June 30th, 2016, the continuously decreasing figures indicate the trend within the fund administration industry in Cayman towards consolidation into a few large global players in the market while Cayman remains the

fund domicile in the world. In order to provide mutual fund administration services in or from within the Cayman Islands, a mutual fund administrator’s license is required pursuant to the Mutual Funds law (2019 Revision) of the Cayman Islands. All applicants must satisfy CIMA with satisfactory evidence that it is of sound reputation and has sufficient expertise to administer regulated mutual funds, and the business will be administered by persons who are fit and proper. This guide provides a basic outline on the types of mutual fund administrator licences available in the Cayman Islands. Please contact us for any additional questions and structuring considerations.

[1] Application Fee & Annual Fee: US$8,537.

[2] To administer not more than 50 regulated mutual funds: Application Fee: US$24,390 (CI$20,000) & Annual Fee: US$36,585 (CI$30,000);

[3] To administer greater than 50 regulated funds: Application Fee: US$35,000(CI$28,700) & Annual Fee US$42,683 (CI$35,000).

[4] Approximately US$487,805.