We are pleased to have the world’s top clients and professional services firms doing business through the Cayman Islands and we wanted to update interested parties on important enhancements to the Cayman Islands Investment Funds Regime.
The Cayman Islands is the leading international domicile for global investment funds, both open-ended and closed-ended investment funds.
The Cayman Islands investment fund is the global collective investment vehicle preferred by investors in North America, UK, China, Japan, the Middle East, Latin America, and many other countries. It is used by international investors to aggregate investment into countries around the world to facilitate efficient global co-investment and asset management. In fact, 70 percent of non-US domiciled investment funds managed by US SEC registered advisors are domiciled in the Cayman Islands.
The Cayman Islands Government has now further modernised and enhanced the oversight of investment funds through updates to the Mutual Funds Law (2020 Revision) (“MFL”) that continues to regulate open-ended investment funds, and the introduction of the Private Funds Law 2020 (“PFL”) that now brings closely-held open and closed-ended investment funds into scope for regulation by the Cayman Islands Monetary Authority (“CIMA”).
These legislative changes are in response to an evolution in global regulations, primarily driven by the Organisation for Economic Co-operation and Development, the European Union and the Caribbean Financial Action Task Force. The Cayman Islands consistently responds to global changes like these with a thoughtful and balanced approach enabling prompt adherence to evolving key global regulatory and anti-money laundering standards and best practices.
Investment funds regulated by CIMA benefit from a globally recognised regulatory environment that is based on international standards and best practices delivered through a risk-based approach that is balanced and proportionate.
The MFL and PFL provide existing closely-held open and closed-ended investment funds, that qualify as Private Funds under the legislation, with a six-month transition period for registration commencing 7 February 2020.
The Cayman Islands Investment Funds Industry, Government and CIMA are committed to seamlessly supporting clients with the same top quality expertise that has made the Cayman Islands the leader in global investment funds working closely together with our valued clients and business partners, to achieve efficient and timely registration of these funds.
Clients’ Cayman Islands professional services contacts will be readily able to assist them with any technical questions they may have or for any other assistance they may require.