Important changes made 7 July 2020 to the Private Funds Law
Private Funds Law **Amended 7 July 2020**
A number of previously out of scope funds (not registered with CIMA) are now in scope of the Private Funds Law as a result of the changes made 7 July 2020. They will require to register with CIMA by 7 August 2020.
What the changes mean:
As a result of the amendments to the Private Funds Law 2020 (PFL) the type of previously exempt from both the PFL and Mutual Funds Law will now be required to register under one of the regimes by 7 August 2020.
These previously exempt categories of companies are now caught and required to register under the PFL:
funds that hold only a single investment;
funds whose manager does not charge fees;
master fund structures; and
alternate investment vehicles.
PFL now states that a “private fund” means a company or partnership that offers or issues or has issued investment shares or investment interests for the pooling of investor funds for investors to receive profits or gains from such company or partnership acquisition, holding, management or disposal of investments, where —
“the holders of investment interests do not have day-to-day control over the acquisition, holding, management or disposal of the investments; and
the investments are managed as a whole by or on behalf of the operator of the private fund, directly or indirectly.”
The are exceptions that remain so that managers, private investments, single family offices and holding vehicles are not subject to the private funds law.