Cayman Private Fund Annual Return: FAR Filing Guide

The Cayman private fund annual return, or Fund Annual Return (FAR), is the yearly filing that every private fund regulated under the Private Funds Act (As Revised) submits to CIMA within six months of its financial year end. It is filed through CIMA's REEFS system together with the audited financial statements and an Operator Declaration signed by one of the fund's operators.

Key takeaways

• The operators of every fund regulated under the Private Funds Act (As Revised) are responsible for the FAR.
• The FAR, the audited financial statements and the Operator Declaration are due within six months of the fund's year end.
• Submission is made through CIMA's Regulatory Enhanced Electronic Forms Submission (REEFS) system.
• The Operator Declaration confirms compliance with the Act's valuation, safekeeping of assets and cash monitoring requirements.
• The investment manager or administrator prepares the FAR, an operator approves it and the auditor submits the package.

The Cayman private funds regime

The Cayman Islands enacted the Private Funds Act on 7 February 2020, establishing a regime for the registration and ongoing regulation of closed-ended funds, referred to as private funds. The regulation of closed-ended funds reflects the Cayman Islands' commitment to the governance principles set by the EU, the OECD and other international organisations. The registration and operating requirements are covered in our guide to the Cayman private funds regime, and Bell Rock's Cayman fund formation service covers private fund launches.

What is the Fund Annual Return?

The FAR form is the document CIMA uses to collect year-end financial, identification and other general information on regulated funds. CIMA has issued the FAR for all regulated private funds.

Filing requirements for regulated private funds

The operators of every fund regulated under the Private Funds Act (As Revised) are responsible for completing and submitting the FAR to CIMA within six months of the fund's financial year end.

The audited financial statements and the FAR are submitted through REEFS. The submission comprises:

1. the FAR form;
2. the audited financial statements; and
3. the Operator Declaration.

The audit that produces those financial statements, and the circumstances in which CIMA may extend or waive it, are explained in our guide to Cayman fund audit requirements and extensions.

The Operator Declaration

The Operator Declaration must be signed by one of the operators of the regulated private fund. It confirms that the fund has complied with sections 16 (valuation), 17 (safekeeping of assets) and 18 (cash monitoring) of the Private Funds Act (As Revised).

Who are the operators?

• The directors, where the fund is a company.
• The general partner, where the fund is a partnership.
• The trustee, where the fund is a unit trust.

Because the declaration covers valuation, the operator signing it should be satisfied with how the fund's assets have been valued; see our guide to fund valuation policies.

Steps to file the FAR

1. The investment manager or administrator prepares the FAR form.
2. One of the fund's operators reviews and approves the FAR form and signs the Operator Declaration.
3. The auditor submits the FAR form, the Operator Declaration and the audited financial statements through REEFS.

The operator of the regulated fund remains responsible for the accuracy and completeness of the FAR, even though others prepare and submit it.

Frequently asked questions

When is the Cayman private fund FAR due?

Within six months of the private fund's financial year end, together with the audited financial statements and the Operator Declaration.

Who signs the Operator Declaration?

One of the fund's operators: a director for a company, the general partner for a partnership or the trustee for a unit trust.

Who submits the FAR to CIMA?

The auditor submits the FAR form, the Operator Declaration and the audited financial statements through REEFS. The operator remains responsible for the FAR's accuracy and completeness.

Related reading

• Setting up a Cayman venture capital fund
• Private credit funds: structures and risks
• Cayman fund liquidation and CIMA deregistration
• CIMA Registration and Ongoing Obligations for Cayman Funds

For private fund launches and ongoing support, see Bell Rock's fund formation service.