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What Are The Grounds for Exemption from Audit for a Private Fund?

 

So you want to apply to CIMA for an exemption from audit requirements. So the requirements are different if you got a private fund and a mutual fund. So I’m going to look at the private fund first. So you want to apply for an exemption from audit requirements. There is a nice little policy there that comes out from CIMA where they give you the grounds that you can use to apply. These grounds do not mean that you will absolutely be granted an exemption. So well I will I’m just going to run through them because I think it’s helpful for you to know. If we got a private fund that it’s launched but it’s been unsuccessful in raising sufficient capital for sustainability which tends to be the common one. It’s unable to obtain audited uh accounts due to events such as bankruptcy, legal or regulatory enforcement actions. It’s been placed in compulsory liquidation and the authority is satisfied with the appointment of the liquidator and the scope of the liquidator’s review. The private fund is being voluntarily liquidated. Please don’t do that one before you apply for the audit exemptions cause it’s such a pain in the neck to deal with. A private fund is transferring to another jurisdiction within six months of its last financial year end for which an audit has been filed. It’s dissolving by way of a merger and there is also an exceptional grounds circumstance. If this you want to apply under exceptional grounds, they really do need to be exceptional grounds. So you need to come and discuss with us what those grounds are and we can look at that because you’re absolutely not guaranteed there. You really do need to have grounds. So that’s everything I’m gonna There is one more. Right. Go on. So if make sure that’s a private fund you’re talking what’s the filing that you can do where you’ve not had any is it capital calls where you just file that? You Yeah, you can file a declaration as well. You can file like a declaration to say that there’s not been any capital into the company. So this is a fund that’s been registered but it hasn’t accepted any contributions. You can file a letter, but you can only do that for a limited period of time as well before CIMA ask why did you bother registering in the in the first place. But you can do that for a private fund. Can’t do that for Can’t do it for a mutual fund. No. Okay. Right.

audit CIMA exemption Private Funds

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