Fund management—Cayman Islands—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Fund management—Cayman Islands—Q&A guide
  • 1. How is fund management regulated in your jurisdiction? Which authorities have primary responsibility for regulating funds, fund managers and those marketing funds?
  • 2. Is fund administration regulated in your jurisdiction?
  • 3. What is the authorisation or licensing process for funds? What are the key requirements that apply to managers and operators of investment funds in your jurisdiction?
  • 4. What is the territorial scope of fund regulation? Can an overseas manager perform management activities or provide services to clients in your jurisdiction without authorisation?
  • 5. Is the acquisition of a controlling or non-controlling stake in a fund manager in your jurisdiction subject to prior authorisation by the regulator?
  • 6. Are there any regulatory restrictions on the structuring of the fund manager’s compensation and profit-sharing arrangements?
  • 7. Does the marketing of investment funds in your jurisdiction require authorisation?
  • 8. What marketing activities require authorisation?
  • 9. What is the territorial scope of your regulation? May an overseas entity perform fund marketing activities in your jurisdiction without authorisation?
  • More...

Fund management—Cayman Islands—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fund management in Cayman Islands published as part of the Lexology Getting the Deal Through series by Law Business Research (published: May 2020).

Authors: Loeb Smith Attorneys—Gary Smith

1. How is fund management regulated in your jurisdiction? Which authorities have primary responsibility for regulating funds, fund managers and those marketing funds?

The main regulatory body in the Cayman Islands that regulates open-ended investment funds, closed-ended investment funds, fund managers and parties marketing investment funds is the Cayman Islands Monetary Authority (CIMA). The main statutes from which CIMA derives its supervisory powers and duties in respect of investment funds are the Mutual Funds Law and the Private Funds Law, and in respect of fund managers, is the Securities Investment Business Law (the SIB Law).

2. Is fund administration regulated in your jurisdiction?

A Cayman Islands-domiciled entity that carries on business as a mutual fund administrator is required to have a valid licence for doing so and is required to be regulated by CIMA. There is more than one type of mutual fund administrator licence and CIMA will assess, among other things, whether the applicant has sufficient expertise to administer regulated investment funds (both open-ended and closed-ended) and whether the business as a mutual fund administrator will be administered by persons who are fit and proper to be directors

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