Cayman Islands Hedge Fund Services 2014

Thu, 16/01/2014 - 18:39

Read how Cayman continues to lead the way as the premier offshore hedge funds domicile and servicing jurisdiction, signing a host of bilateral tax agreements – aimed at fostering close cooperation with US, UK, EU and other governments and regulators – tha

The 'Cayman Islands Hedge Fund Services 2014' special report comprises 14 separate articles listed below, these can be read individually or as a sequence.
Colin MacKay, AIMA

Cooperation with regulators improves reputation

Thu, 16/01/2014 - 18:57

By Colin MacKay – The 2007/8 global financial crisis continues to influence the environment within which the Cayman investment funds industry operates. Global economic patterns, largely driven by factors emerging from that crisis, continue to shape cross-border political and regulatory developments. These, in turn, impact the investment management, banking, prime brokerage, administration, accounting and legal communities, each of which continues to favour Cayman for investment fund structuring and operation. »

Monette Windsor, UBS Fund Services

The AIFM Directive is a ‘significant opportunity’

Thu, 16/01/2014 - 19:01

For UBS Fund Services, the AIFM Directive represents a significant opportunity to expand its business offering. As a global operation, it is well positioned to capitalise on the regulatory changes being introduced in Europe as compared to administrators without a European presence. In addition to offices in Dublin and Luxembourg, both of which are already working to support managers under the directive, UBS also has its own dedicated AIFMD working group whose sole focus is keeping on top of salient issues. »

James Williams, Hedgeweek

Corporate governance moves underscore commitment to global best practices

Thu, 16/01/2014 - 18:49

By James Williams – December 2013 proved to be a busy period for the Cayman Islands in terms of the development of its regulatory framework. On 6 December 2013, after a period of consultation with industry practitioners, the Cayman Islands Monetary Authority (CIMA) – the Islands’ financial regulator – released its Statement of Guidance for Regulated Mutual Funds (‘SoG-MF’).  »

Geoff Roddick, International Management Services

Independent Directors: Considerations and Queries

Mon, 27/01/2014 - 17:41

Picking the right independent director is not as simple as you might think. Geoff Ruddick of International Management Services (pictured) takes a look at the key things to consider… »

Tim Buckley, Walkers

Cayman funds ahead of the curve

Thu, 16/01/2014 - 19:25

By Tim Buckley (pictured) and Ed Pearson, Walkers – After spending much of the year in consultation with the industry, CIMA’s near-term regulatory approach is becoming clearer. »

Canover Watson, Admiral Administration

Helping managers absorb rising costs

Thu, 16/01/2014 - 19:30

The one known unknown facing managers amidst increased regulation is the rising cost of doing business. »

Ian Gobin, Appleby

CIMA’s final Statement of Guidance

Thu, 16/01/2014 - 19:33

The Statement of Guidance on corporate governance for mutual funds (SoG) published by CIMA in December 2013 is one of the key regulatory developments to have come out of the Cayman Islands in recent years. »

Cayman Islands

Meeting emergent regulatory challenges

Thu, 16/01/2014 - 19:39

By Ras Sipko, Chief Operating Officer of Koger – Regardless of the differences in their intent and emphasis, both the Alternative Investment Fund Managers Directive (AIFMD) and the Foreign Account Tax Compliance Act (FATCA) impose considerable demands on fund managers with regard to data management and documentation. »

Mike Saville, Grant Thornton

The SPC – A curious creature

Thu, 16/01/2014 - 19:44

“Personally I think the Segregated Portfolio Company (SPC) structure has the potential to become a nightmare,” states Mike Saville (pictured), Director, Recovery & Reorganisation for Grant Thornton Specialist Services (Cayman) Ltd. “The structure is a way to spread administration and directorship costs but because an SPC is typically composed of multiple cells operating under one legal entity investors are setting themselves up for additional risks should problems arise.” »

Colin MacKay, Ogier Fund Services

Corporate governance growth brings challenges

Thu, 16/01/2014 - 19:48

By Colin MacKay, Ogier Fund Services – At its recent annual general meeting, the Cayman Islands Directors Association reported that new member applications in 2013 grew by over 15 per cent; further evidence, if it were needed, that the provision of corporate governance to alternative funds is one of the fastest growing sectors of the Cayman financial services industry. The debate on how best to prescribe and regulate the provision of effective corporate governance remains one of the most important to the industry, both at home and abroad. »

James Williams, Hedgeweek

Cayman service providers adjust to the demands of global regulation

Thu, 16/01/2014 - 19:51

By James Williams – “In 2012, our voluntary application got approved by CIMA to have a regulated director services model, called DMS Fund Governance. What that means is that just like an auditor or an administrator in the Cayman Islands, we are regulated by CIMA as a service provider to hedge funds,” confirms Kathleen Celoria, Executive Director (New York) DMS Offshore Investment Services. With over 80 full-time directors and associate directors, DMS is the world’s largest provider of fund governance services. »

Matt Mulry, Dillon Eustace

Managers need to take a multi-adviser approach

Thu, 16/01/2014 - 19:54

Although the AIFM Directive is uniform EU-wide regulation each member state is likely to adjust its national private placement regime rules idiosyncratically. For managers of non-EU funds, therefore, it’s important that they are clear on the rules if they intend to continue marketing to Europe. »

Richard Addlestone, Solomon Harris

Should company benefactors be public knowledge?

Thu, 16/01/2014 - 19:59

By Richard Addlestone, Solomon Harris – In response to the push towards greater global transparency on beneficial ownership, the UK has proposed a public register of ownership interests in companies, which could be searched by anyone, anywhere in the world. It hopes the other G8 members will copy its model, but has left it to the Cayman Islands Government (‘CIG’) to decide if it wants to follow suit. »

Susan Locke, Campbells

Assessing the options under the AIFM Directive

Thu, 16/01/2014 - 20:03

By Susan Lock, Campbells – The Alternative Investment Fund Managers Directive (AIFMD) is extremely broad in scope. It applies to entities performing risk or portfolio management from within the European Economic Area (“EEA”) for both non-EEA or EEA Alternative Investment Funds (“AIFs”), entities performing risk or portfolio management for EEA AIFs from outside of the EEA and/or entities that actively market an AIF to EEA investors. »

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