Mutual Fund License
License for establishing and operating crypto-focused investment funds under Cayman's mutual fund framework.
Mutual Funds Act
Capital Required
KYD 200,000-500,000 depending on fund type
Timeline
6-8 weeks
Fees
KYD 5,000-15,000 application + KYD 3,000-8,000 annual
Regulatory Body
Cayman Islands Monetary Authority (CIMA)
Legislative Framework
Virtual Asset (Service Providers) Act 2020 (as amended 2024), Securities Investment Business Law, Mutual Funds Act
Last updated: June 2025
Key Requirements
Minimum fund capital of KYD 200,000-500,000 depending on fund type (private vs. public)
Professional fund administrator appointed (typically Cayman-licensed) for accounting and NAV
Qualified fund manager with investment management experience and crypto/alternative asset track record
Comprehensive fund prospectus detailing investment objectives, crypto exposure, leverage, and fees
Independent custodian or sub-custodian arrangements with qualified institutions for safekeeping
Clear valuation methodology for crypto holdings with independent pricing sources and procedures
Board of directors or governance committee with appropriate expertise for fund oversight
Annual independent audits of fund accounts and quarterly investor reporting with valuations
Application Process
Prepare comprehensive fund documentation including prospectus, investment policy, and investor profile
Submit fund manager CV demonstrating investment management competency and relevant track record
Arrange administrator and custodian appointments with CIMA-licensed institutions and letters
Provide fund valuation methodology and pricing source documentation for crypto holdings
Submit fund governance documentation including board composition and manager appointment terms
CIMA review and approval following assessment of fund structure and investor protections
Expected Total Timeline
6-8 weeks
Ongoing Obligations
After obtaining your Mutual Fund License, these are the continuing compliance requirements you must maintain.
Quarterly fund valuations and investor reporting with asset composition, performance, and fees
Annual independent audit of fund accounts by CIMA-approved auditors with results within 4 months
Quarterly custodian reconciliation statements verifying fund asset holdings and segregation
Annual fit-and-proper assessments for fund manager with notification to CIMA of changes
Annual review of fund prospectus and investment policy with CIMA notification of amendments
Quarterly reporting to CIMA of fund statistics including investors, total assets, and events
Cost Summary
Capital Requirement
KYD 200,000-500,000 depending on fund type
Application & Licensing Fees
KYD 5,000-15,000 application + KYD 3,000-8,000 annual
Jurisdiction Setup Cost
$40,000-$120,000
Annual: $30,000-$80,000
Other Cayman Islands Licenses
Explore other license types available in Cayman Islands.
VASP Registration
VASP License -Custody & Trading
Securities Investment Business License
Need help with Mutual Fund License?
Our team manages the full Cayman Islands licensing process -from application preparation through post-approval implementation.
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