Previous Posts
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Mar 31, 2012
Comments OffCayman Regulator and SEC Enter Cooperation Agreement
The Securities and Exchange Commission (“SEC”) and the Cayman Islands Monetary Authority (“CIMA”) recently entered into a memorandum of understanding (“MOU”). Under the MOU, it is the intension of the regulatory bodies to consult, cooperate and exchange information regarding Cross-Border Regulated Entities (as defined in the MOU). Such information includes (but is not limited to):...
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Mar 21, 2012
Comments OffCayman Extends Deadline For Master Fund Registration
Cayman is a leading hedge fund domicile. In order for Cayman to retain its position, stakeholders acknowledge that Cayman must pay attention to (and meet) investors’ demands. One such request is the need for regulation in the right places. Cayman is now strengthening regulatory requirements by insisting that Cayman domiciled master funds register with the...
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Feb 23, 2012
No CommentsCayman Issues New Master Fund Advisory
On 16 January 2012, we summarised Cayman’s new requirement for the registration of master funds and explained that the registration deadline was approaching. The Cayman Islands Government has now issued a new master fund advisory. It appears that the purpose of the new industry memo is to clarify that all master funds (with one or...
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Feb 14, 2012
No CommentsFund Governance: Going Beyond The Due Diligence Checklist
Corporate governance practices of Cayman Islands directors are under close scrutiny; seed investors, investment managers, due diligence firms, regulators and others are analyzing board compositions, capacity issues, competence and debating whether current structures offer enough independence to protect hedge funds and their investors. Board Composition For a hedge fund registered with the Cayman Islands Monetary...
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Jan 16, 2012
1 CommentMaster Funds Running Out of Time
Prior to December 2011, clients with master funds could avoid registration of their master funds with the Cayman Islands Monetary Authority (the “Authority”). This was mainly because such master funds qualified for a registration exemption requirement. The loophole meant no regulation by the Authority and no annual fees payable to the Authority. This is has...
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Oct 12, 2011
No CommentsPayscales of Cayman Islands Independent Directors
A Cayman Islands independent director may have a good track record, limited number of directorship appointments (therefore, making sufficient time available for each Cayman Islands fund board on which he serves as a director), be knowledgeable about fund structures and possess the necessary competence to properly discharge his legal and fiduciary duties. However, on any...
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Oct 07, 2011
No CommentsCayman Islands Resident Directors
According to the statistics published in a recent newsletter of the Cayman Islands Monetary Authority (“CIMA”), over 9,000 investment funds are registered with CIMA. The boards of directors of these funds often include one or more resident Cayman Islands directors, along with a representative of the fund’s investment manager or other service provider. The purpose...
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Sep 28, 2011
No CommentsCayman Directors
A Cayman director may encounter different sets of circumstances on a daily basis while acting as a director of a Cayman Islands fund. Any issues are typically brought to the Cayman director’s attention by the lawyers of the fund, a service provider or they are discovered during the Cayman director’s customary inspection of fund documentation...
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Sep 22, 2011
No CommentsDo Not Put All Your Eggs In The Same Basket
In the Weavering judgment, where the directors of a Cayman Islands fund were found guilty of wilful neglect or default, it was emphasized that a director of a Cayman Islands fund should play a role during the launch of a Cayman Islands fund. This includes performing his or her duties in respect of the establishment...
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Sep 15, 2011
No CommentsDirectors Take Warning After $111 Million Judgment
Shockwaves flooded the directorship community of the Cayman Islands when a US$ 111 million judgment was passed against the directors (the “Directors”) of Weavering Macro Fixed income Fund Limited (the “Macro Fund”) in August 2011. The Cayman court (the “Court”) found the Directors guilty of willful neglect or default. In the powerful judgment, the Court...
