{"kind":"expression","expression":{"expr_id":"292","doc_id":"292","label":"SL 102 of 2020","is_as_enacted":"t","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/sl\/2020\/102\/eng@2020-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/sl\/2020\/102\", \"expression\": \"\/akn\/ky\/act\/sl\/2020\/102\/eng@2020-01-01\", \"manifestation\": \"\/akn\/ky\/act\/sl\/2020\/102\/eng@2020-01-01.pdf\"}, \"pdf\": {\"md5\": \"8c25be33be11a6ce829108c1a16bbcfd\", \"path\": \"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.pdf\", \"pages\": 4, \"filename\": \"2020-0102_SL 102 of 2020.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 1049, \"paragraph_count\": 7, \"text_char_count\": 6674}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"July 2020 Rule Calculation of Net Asset Values - Registered Private Funds\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Statutory Authority 1.1. These Rules are issued pursuant to section 34 of the Monetary Authority Law ( 2020 Revision) (\u201cMAL\u201d), which provides that the Cayman Islands Monetary Authority (the \u201cAuthority\u201d) may, after private sector consultation, issue or amend rules or statements of principle or guidance concerning the conduct of licensees and their officers and employees, and any other persons to whom and to the extent that the regulatory laws may apply. 1.2. These Rules should also be read in conjunction with the Authority\u2019s Rules on Contents of Marketing Material of Registered Private Funds.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Objective 2.1. To set out the Authority\u2019s rules on the Calculation of Net Asset Values for Registered Private Funds (each subparagraph of paragraph 5 below referred to as a \u201cRule,\u201d and collectively, the \u201cRules\u201d), pursuant to the MAL.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Scope 3.1. These Rules apply to all Private Funds registered under section 7 of the Private Funds Law, 2020 (the \u201cPFL\u201d) other than Alternative Investment Vehicles.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Definitions 4.1. Fund means any Private Fund registered under section 7 of the PFL that is not an Alternative Investment Vehicle. 4.2. NAV (Net Asset Value) means the value of a Fund\u2019s total assets (including accrued interest, dividends and other receivables), minus the value of the Fund\u2019s total liabilities (including accrued expenses (including fees) and other payables). 4.3. NAV Calculation Policy means the pricing and valuation practices, July 2020 policies, and procedures to calculate a Fund\u2019s NAV that are established and maintained in accordance with the requirements of the PFL and the Rules. 4.4. Fair Value means the price that would be received for the sale of an   asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 4.5. Hard-to-Value Assets means investments for which there is no active market price for identical assets or liabilities that the fund can access at the NAV calculation date. 4.6. Pricing Models include any pricing models or determination methods used to value investments. 4.7. Section 16 Person means a person appointed by a Fund under section 16 of the PFL to perform valuations of its assets. 4.8. All other capitalised terms used in the Rules shall have the meanings ascribed to them in the PFL.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"NAV Calculation Policy 5.1. A Fund must establish, implement, and maintain a NAV Calculation Policy that ensures a Fund\u2019s NAV is fair, reliable, complete, neutral and free from material error and is verifiable. 5.2. The NAV Calculation Policy shall be calculated in accordance with the International Financial Reporting Standards, or generally accepted accounting principles of the United States of America, Japan or Switzerland or a Non-High Risk Jurisdiction. 5.3. The methodology used to perform the NAV calculation must be consistent with the accounting principles or reporting standards used to prepare the Fund\u2019s audited financial statements. 5.4. The NAV Calculation Policy must: 5.4.1 be written and disclosed in the Fund\u2019s constitutional documents or Marketing Materials or other form of Investor communication typically used by the Fund; 5.4.2 describe the Fund\u2019s practical and workable pricing and valuation policies, practices, and procedures; July 2020 5.4.3 require the valuing of assets regularly, at least annually; 5.4.4 state the value of assets, how it will be used, and when and how it will be published; 5.4.5 state the accounting principles or reporting standards that will be followed; 5.4.6 define the role and responsibilities of the Section 16 Person in the valuation process; 5.4.7 identify the price sources for each investment type and a practical escalation of resolution procedure for the management of exceptions; and 5.4.8 incorporate internal controls that are appropriate to the size, complexity, and nature of the Fund\u2019s operations. 5.5. Unless otherwise required by the financial reporting frameworks set out in 5.3, the NAV Calculation Policy must require the Fund to value the investments within its portfolio(s) using Fair Value. 5.6. In estimating the Fair Value for an investment, the Fund should apply a technique or techniques that is or are appropriate considering the nature, facts, and circumstances of the investment. 5.7. A Fund may use Pricing Models to determine a Fair Value for Hard-toSecurities. 5.7.1 A Fund must, to the extent appropriate to address the risk of material error, calibrate Pricing Models, by verifying the inputs used in the Pricing Model and testing whether the Pricing Model reflects current market conditions, for example, by applying the model and inputs to a similar instrument for which pricing information is available or other appropriate means. 5.7.2 Any Pricing Models must be capable of practical implementation by the Section 16 Person. 5.8. The Fund must require the Section 16 Person to apply the Fund\u2019s NAV Calculation Policy; unless there is satisfactory reason not to do so, deviations from the NAV Calculation Policy must be disclosed in the Fund\u2019s Marketing Materials.  Where they are likely to have an effect on the reported NAV, they must be disclosed to the Fund\u2019s investors and agreed by the Operator(s) in advance of the determination or production of the NAV. July 2020 5.9. In addition to any disclosure required by Rule 5.8, a Fund\u2019s constitutional documents or Marketing Materials or other form of Investor communication must explicitly describe the inherent limitations potential limitations and conflicts of the NAV Calculation Policy, and any material involvement by the Fund\u2019s investment manager \/ advisor in the pricing of the Fund\u2019s portfolio, or otherwise in the calculation, determination or production of the NAV and any conflicts of interest caused by such involvement. 5.10. The NAV of the Fund shall be communicated directly to the investors (as recorded on the official register of the entity), including to each particular investor their share of the balance or NAV per unit, by the Service Provider charged in 5.8 with the NAV Calculation. reports must be addressed directly to the Fund\u2019s investors. 5.11. The Fund\u2019s Operator(s) have ultimate responsibility for oversight of the entire net asset valuation process, and must approve, and review at least annually, the NAV Calculation Policy and any Pricing Models.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Enforcement 6.1. 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Statutory Authority\n1.1. These Rules are issued pursuant to section 34 of the Monetary Authority\nLaw ( 2020 Revision) (\u201cMAL\u201d), which provides that the Cayman Islands\nMonetary\nAuthority\n(the\n\u201cAuthority\u201d)\nmay,\nafter\nprivate\nsector\nconsultation, issue or amend rules or statements of principle or guidance\nconcerning the conduct of licensees and their officers and employees, and\nany other persons to whom and to the extent that the regulatory laws may\napply.\n1.2. These Rules should also be read in conjunction with the Authority\u2019s Rules\non Contents of Marketing Material of Registered Private Funds.\n2. Objective\n2.1. To set out the Authority\u2019s rules on the Calculation of Net Asset Values for\nRegistered Private Funds (each subparagraph of paragraph 5 below\nreferred to as a \u201cRule,\u201d and collectively, the \u201cRules\u201d), pursuant to the MAL.\n3. Scope\n3.1. These Rules apply to all Private Funds registered under section 7 of the\nPrivate Funds Law, 2020 (the \u201cPFL\u201d) other than Alternative Investment\nVehicles.\n4. Definitions\n\n4.1. Fund means any Private Fund registered under section 7 of the PFL that\nis not an Alternative Investment Vehicle.\n\n4.2. NAV (Net Asset Value) means the value of a Fund\u2019s total assets\n(including accrued interest, dividends and other receivables), minus the\nvalue of the Fund\u2019s total liabilities (including accrued expenses (including\nfees) and other payables).\n\n4.3. NAV Calculation Policy means the pricing and valuation practices,\n\nJuly 2020\n\npolicies, and procedures to calculate a Fund\u2019s NAV that are established and\nmaintained in accordance with the requirements of the PFL and the Rules.\n\n4.4. Fair Value means the price that would be received for the sale of an   asset\nor paid to transfer a liability in an orderly transaction between market\nparticipants at the measurement date.\n\n4.5. Hard-to-Value Assets means investments for which there is no active\nmarket price for identical assets or liabilities that the fund can access at\nthe NAV calculation date.\n4.6. Pricing Models include any pricing models or determination methods\nused to value investments.\n\n4.7. Section 16 Person means a person appointed by a Fund under section\n16 of the PFL to perform valuations of its assets.\n\n4.8. All other capitalised terms used in the Rules shall have the meanings\nascribed to them in the PFL.\n5. NAV Calculation Policy\n\n5.1. A Fund must establish, implement, and maintain a NAV Calculation Policy\nthat ensures a Fund\u2019s NAV is fair, reliable, complete, neutral and free from\nmaterial error and is verifiable.\n\n5.2. The NAV Calculation Policy shall be calculated in accordance with the\nInternational Financial Reporting Standards, or generally accepted\naccounting principles of the United States of America, Japan or Switzerland\nor a Non-High Risk Jurisdiction.\n\n5.3. The methodology used to perform the NAV calculation must be consistent\nwith the accounting principles or reporting standards used to prepare the\nFund\u2019s audited financial statements.\n\n5.4. The NAV Calculation Policy must:\n5.4.1 be written and disclosed in the Fund\u2019s constitutional documents or\nMarketing Materials or other form of Investor communication\ntypically used by the Fund;\n5.4.2 describe the Fund\u2019s practical and workable pricing and valuation\npolicies, practices, and procedures;\n\nJuly 2020\n\n5.4.3 require the valuing of assets regularly, at least annually;\n5.4.4 state the value of assets, how it will be used, and when and how it\nwill be published;\n5.4.5 state the accounting principles or reporting standards that will be\nfollowed;\n5.4.6 define the role and responsibilities of the Section 16 Person in the\nvaluation process;\n5.4.7 identify the price sources for each investment type and a practical\nescalation of resolution procedure for the management of\nexceptions; and\n5.4.8 incorporate internal controls that are appropriate to the\n size, complexity, and nature of the Fund\u2019s operations.\n\n5.5. Unless otherwise required by the financial reporting frameworks set out in\n5.3, the NAV Calculation Policy must require the Fund to value the\ninvestments within its portfolio(s) using Fair Value.\n\n5.6. In estimating the Fair Value for an investment, the Fund should apply a\ntechnique or techniques that is or are appropriate considering the nature,\nfacts, and circumstances of the investment.\n\n5.7. A Fund may use Pricing Models to determine a Fair Value for Hard-toSecurities.\n5.7.1 A Fund must, to the extent appropriate to address the risk of material\nerror, calibrate Pricing Models, by verifying the inputs used in the\nPricing Model and testing whether the Pricing Model reflects current\nmarket conditions, for example, by applying the model and inputs to\na similar instrument for which pricing information is available or other\nappropriate means.\n5.7.2 Any Pricing Models must be capable of practical implementation by\nthe Section 16 Person.\n\n5.8. The Fund must require the Section 16 Person to apply the Fund\u2019s NAV\nCalculation Policy; unless there is satisfactory reason not to do so,\ndeviations from the NAV Calculation Policy must be disclosed in the Fund\u2019s\nMarketing Materials.  Where they are likely to have an effect on the\nreported NAV, they must be disclosed to the Fund\u2019s investors and agreed\nby the Operator(s) in advance of the determination or production of the\nNAV.\n\nJuly 2020\n\n5.9. In addition to any disclosure required by Rule 5.8, a Fund\u2019s constitutional\ndocuments\nor\nMarketing\nMaterials\nor\nother\nform\nof\nInvestor\ncommunication must explicitly describe the inherent limitations potential\nlimitations and conflicts of the NAV Calculation Policy, and any material\ninvolvement by the Fund\u2019s investment manager \/ advisor in the pricing of\nthe Fund\u2019s portfolio, or otherwise in the calculation, determination or\nproduction of the NAV and any conflicts of interest caused by such\ninvolvement.\n\n5.10. The NAV of the Fund shall be communicated directly to the investors (as\nrecorded on the official register of the entity), including to each particular\ninvestor their share of the balance or NAV per unit, by the Service Provider\ncharged in 5.8 with the NAV Calculation. reports must be addressed\ndirectly to the Fund\u2019s investors.\n\n5.11. The Fund\u2019s Operator(s) have ultimate responsibility for oversight of the\nentire net asset valuation process, and must approve, and review at least\nannually, the NAV Calculation Policy and any Pricing Models.\n6. Enforcement\n\n6.1. Whenever there has been a breach of the Rules, the Authority\u2019s regulatory\npolicies and procedures as contained in its Enforcement Manual will apply,\nin addition to any other powers provided in the PFL and the MAL.","akn_extracted_at":"2026-06-22 15:40:06.882053+00","cms_id":"2020-0102","law_type":"subordinate","year":"2020","number":"102","title":"Rule on Calculation of Asset Values \u2013 Registered Private Funds","status":"in_force"},"provenance":{"files":[{"file_id":"5187","expr_id":"292","kind":"akn_xml","filename":"2020-0102_SL 102 of 2020.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.akn.xml","content_md5":"582924a2099c5217d9a876734df9fa3c","byte_size":"10027","http_last_modified":null,"fetched_at":"2026-06-22 15:40:06.944348+00"},{"file_id":"583","expr_id":"292","kind":"pristine_pdf","filename":"2020-0102_SL 102 of 2020.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.pdf","content_md5":"8c25be33be11a6ce829108c1a16bbcfd","byte_size":"152157","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.326202+00"},{"file_id":"584","expr_id":"292","kind":"working_pdf","filename":"2020-0102_SL 102 of 2020.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2020\/2020-0102\/2020-0102_SL 102 of 2020.pdf","content_md5":"8c25be33be11a6ce829108c1a16bbcfd","byte_size":"152157","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.326202+00"}],"paragraph_count":7,"latest_history":null},"quality":{"expr_id":"292","doc_id":"292","quality_state":"known_issue","quality_score":"71","needs_human_review":"t","deterministic_categories":"{page_header_footer_noise,title_mismatch}","llm_categories":"{other}","repair_actions":"{manual_review,strip_page_furniture,verify_title_metadata}","finding_severity_counts":"{\"medium\": 1}","finding_summary":"Minor textual anomaly detected; otherwise extraction appears complete and well-formatted.","assessed_at":"2026-06-22 15:29:46.108584+00","updated_at":"2026-06-22 15:29:46.108584+00"}}