- with readers working within the Securities & Investment industries
The Cayman Islands Monetary Authority (the Authority) has issued a recent industry notice providing clarification on revisions to certain fees payable by regulated mutual funds and regulated private funds, with effect from 1 January 2026. The notice follows earlier guidance issued in December 2025 and is intended to assist industry participants in understanding the practical application of the revised fee framework introduced by the Cayman Islands Government.
This update outlines the revised fee amounts and highlights key procedural points relevant to fund operators, in house counsel, directors and service providers.
Revised fee framework
With effect from 1 January 2026, adjustments have been made to the Annual Return Fee applicable to funds, sub funds and alternative investment vehicles (AIVs) regulated under the Mutual Funds Act (as revised) and the Private Funds Act (as revised). The revised annual and sub fund fees are as follows:
- The annual fee payable by registered mutual funds is US$5,030.49.
- The annual fee payable by master funds is US$3,750.
- The sub fund fee applicable to registered mutual funds is US$914.63 per sub fund.
- The sub fund or AIV fee applicable to registered private funds is US$640.24 per sub fund or AIV.
Annual Return Fees relating to financial years ending on or before 31 December 2025 continue to be assessed at the pre revised rates.
Presentation of fees on REEFS
For the 2026 calendar year, the Authority has confirmed that the annual fee will be presented on the Regulatory Enhanced Electronic Forms Submission (REEFS) portal as separate payment items. This reflects timing differences between the release of the Annual Fee on REEFS and subsequent Government approval of the revised amounts.
From 1 January 2027, the annual fee will appear as a single consolidated payment on REEFS.
Timing and payment mechanics
- The statutory deadline for payment of the annual fee remains 15 January each year.
- Sub fund and AIV fees continue to be payable separately, in accordance with existing procedures.
- Funds that have already submitted payment for the 2026 year should confirm that the full revised annual fee, together with any applicable sub fund or AIV fees, has been remitted.
- Any outstanding balance arising from the revised framework must be settled by 15 February 2026.
Transitional penalty position
The Authority has advised that no penalties will be applied in respect of unpaid incremental fee amounts until after 15 February 2026. Where all applicable fees are not paid in full by that date, non compliance may arise and penalties may be assessed in accordance with the relevant legislation.
Practical points for regulated entities
Regulated funds and their service providers may wish to review their REEFS account profiles to confirm that the revised fees are correctly reflected and that payment arrangements are aligned with the updated framework. Groups operating multiple funds, sub funds or AIVs should ensure that internal processes capture the revised fee amounts for the 2026 calendar year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
