Cayman Islands Legislation
Mutual Funds (Amendment) Bill, 2026
Government bill, sponsored by the Ministry of Financial Services and Commerce (FSC)
✓
Gazetted
Published in the Gazette
✓
Introduced
5 March 2026
First appeared on the order paper
✓
Enacted
24 March 2026
Act 5/2026
✓
In force
What this law does
This bill updates Cayman Islands mutual fund laws to allow mutual funds to issue shares as digital tokens (called digital equity tokens). It sets up new rules for these tokenised mutual funds, including requirements for record-keeping, disclosure of risks, and oversight by financial regulators.
- Defines 'digital equity token' as a digital representation of fund shares and 'tokenised mutual fund' as a fund using this technology
- Requires tokenised mutual fund operators to maintain secure records of all token transactions and confirm annually that records are properly kept
- Mandates disclosure of risks specific to digital tokens (cybersecurity, transferability, etc.) in fund offering documents and explanation of how risks are addressed
- Grants financial regulators authority to inspect tokenised mutual funds' technology and token transactions to ensure compliance and investor protection
Who it affects: Mutual fund operators and managers, mutual fund investors, licensed mutual fund administrators, and the Cayman Islands Monetary Authority (regulator)
This summary is AI-generated from the official document and may contain errors; it is not legal advice. Always consult the source text below.
Official documents
Debated in Parliament
Hansard sittings whose records mention this law: