The Cayman Islands Monetary Authority (CIMA) has implemented significant changes to the fee structure for registered investment funds, effective January 1, 2026. These modifications impact both Mutual Funds and Private Funds registered with CIMA, and fund managers need to act quickly to ensure compliance.
What’s Changed?
Higher Annual Filing Fees
CIMA has increased the Fund Annual Return (FAR) filing fee by approximately 28%. The new fee structure marks a notable rise from CI$350 (approximately US$427) to CI$450 (approximately US$549) per fund annually.
Streamlined Payment Process
In a move toward administrative efficiency, CIMA has consolidated the FAR fee into the standard annual regulatory fee. This means fund managers will now handle fewer separate payments, with the FAR component integrated into a single annual CIMA fee payment.line for all CIMA-registered funds to remit their 2026 FAR fees. Missing this deadline will trigger penalty assessments from CIMA, potentially adding unnecessary costs to your fund’s operational expenses.
Important Deadlines
February 15, 2026 is the critical deadline for all CIMA-registered funds to remit their 2026 FAR fees. Missing this deadline will trigger penalty assessments from CIMA, potentially adding unnecessary costs to your fund’s operational expenses.
What Fund Managers Should Do Now
- Review Your Fund Structure – Identify all CIMA-registered funds under your management that will be subject to these revised fees
- Budget Accordingly – Update your 2026 fund expense projections to reflect the increased FAR fees across your fund portfolio
- Coordinate with Service Providers – Your registered office provider (whether Linnovate or another Cayman corporate services provider) will issue updated invoices reflecting the new fee structure. Ensure timely payment processing to avoid penalties
- Update Investor Communications – Consider whether these fee changes materially impact your fund’s expense ratios and if investor notifications are warranted
The Bigger Picture
While fee increases are never welcome news, this consolidation reflects CIMA’s broader efforts to modernize regulatory infrastructure in the Cayman Islands. For fund managers operating in an increasingly complex regulatory environment, streamlined payment processes can reduce administrative burden even as costs rise.
As the private funds industry continues its rapid expansion—with global AUM projected to exceed $200 trillion by 2030—regulatory authorities worldwide are enhancing oversight frameworks. These fee adjustments help fund CIMA’s evolving supervisory capabilities, which ultimately benefits the integrity and reputation of Cayman Islands domiciled funds.
Linnovate provides integrated fund administration, regulatory compliance, and technology solutions for investment managers globally. Our RAISE ecosystem delivers the unified platform modern fund managers need to scale efficiently while maintaining regulatory excellence.
