CIMA revokes local firm’s mutual fund administration license

On May 18, 2022, the Cayman Islands Monetary Authority (“CIMA”) posted a decision notice on its website revoking the restricted mutual fund administrator license of Advanced Fund Administration (Cayman) Limited, a local company (the “Company”).

The grounds for revocation were summarized by CIMA as follows:

  1. The Company has a long history of non-compliance with the Mutual Funds Act (2021 Revision) (the “Act”) and the terms of its licence. The Company also continues to be in breach of section 22 of the Act and another condition imposed on its license under section 31(3)(b) of the Act, requiring the Company to maintain a minimum net worth of CI$100,000.
  2. In addition, after reviewing the documents submitted in support of the license surrender request, the Authority found that the Company was unable to meet the Authority’s requirements to accept the surrender.

Further, CIMA stated that the direction and management of the Company’s business has not been conducted in a proper and proper manner, that the Company is or is likely to become unable to meet its obligations as they come due and that the Company violated the law.

The license revocation takes effect on May 10, 2022.

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Dolores W. Simon