A number of regulatory developments have been introduced into the Cayman Islands over the last 12 months as it takes further steps to ensure the transparency and integrity of its financial funds industry stands up to global scrutiny.
By Matt Mulry (pictured), Dillon Eustace – In the shadow of an impending review by the Financial Acting Task Force the Cayman Islands has undertaken an overhaul of its laws, regulations and guidance notes which govern its anti-money laundering and counter-terrorist financing regime.
By Piers Alexander, Conyers Dill & Pearman – The Cayman Islands is a world leader in the establishment of offshore hedge funds. Its tax-neutral platform, stable economy, sophisticated banking sector, confidentiality and professional financial service industry are just some of the reasons the location is attractive to hedge fund managers the world over.
Last July, the Securities Commission of The Bahamas (the Commission) embarked on a process to overhaul the Investment Funds Act. The Investment Funds Act 2003 was largely structured to be in line with the operations of fiduciary administrators and did not necessarily account for the appropriate regulation of the various roles within a fund structure.
By Matt Mulry (pictured), Dillon Eustace – We often hear the Cayman Islands are criticised in the press or in political debate over perceived financial secrecy. A flagging election campaign in the US or Europe can easily benefit from the rejuvenating spark provided by an airing of the offshore holdings of the candidates and their families.
This publication has been prepared for the assistance of those who are considering the law of the British Virgin Islands (BVI) as it pertains to anti‐money laundering measures.
By Matt Mulry, Dillon Eustace – Whether you’re looking to launch a private equity fund focused on venture capital, real estate, infrastructure, technology, energy, health care or art or a hedge fund focused on global macro, long/short equity, special situations, fixed-income or commodities the Cayman Islands is a great place to start.
The past 12 months has seen The Bahamas review its existing legislative framework for investment funds, with a view to ensuring that it maintains its competitiveness. Under the existing framework, some of the innovations that The Bahamas has introduced, such as the ICON legal structure and the SMART Fund series, have raised the jurisdiction’s profile and helped attract new business. However, it is time for a refresh of the 2003 Investment Funds Act which provided for these innovative instruments which support private wealth management.
Mourant Ozannes' investment funds team has established the first five Jersey Private Funds (JPF) since the new regime came into effect last month.
By Matt Mulry, Dillon Eustace – Cayman has seen a healthy increase in private equity funds year on year over the past decade. The popularity of Cayman private equity funds has been fuelled by both the evolution of hedge fund managers’ businesses into the private equity fund space and by the increased use of private equity funds to pursue distressed asset investments.