Sun, Aug 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Caymans’ master funds will now have to register with authority

Wednesday, December 07, 2011
Opalesque Industry Update - Following several months of consultation with industry and the Cayman Islands Monetary Authority (CIMA), the Mutual Funds (Amendment) Bill 2011 was passed by the legislature on 5 December 2011, according to the international law firm Walkers. This comes after the Cayman Islands’ Premier announced in June this year a proposal to require new and existing master funds in open-ended master/feeder structures to register with CIMA to bring the Cayman regime in line with the practice adopted in other jurisdictions.

In a budget speech, Prime Minister McKeeva Bush then also told members of Cayman's Legislative Assembly of a new taxation system for certain registered master fund of hedge funds, that his government would introduce only one revenue measure for this fiscal year, "which will be on the hedge fund industry - and no external borrowing." (see Opalesque Exclusive).

The Amendment still needs to be approved by the Governor and published in the Gazette before being enacted – and this should happen before year-end.

New master funds affected by the Amendment will become subject to its registration requirements before the end of December 2011, says Walkers, and existing master funds will have a period of 90 days to comply (with a possibility for a short extension).

“Not all master funds established in Cayman will fall within the ambit of the Amendment. In essence, it will only capture Cayman master funds which (a) issue equity interests redeemable at the option of the investor(s), (b) have more than one investor and (c) have themselves one or more feeder funds which are, in turn, registered with CIMA,” says the report.

Registered master funds will have to comply with many of the duties that CIMA-registered hedge funds are subject to, namely (1) payment of an annual fee (here to be set at CI$2,500 (US$3,048)) and (2) filing of audited financial statements.
B. Gravrand


See our recent coverage on the Cayman Islands:
22.11.2011 Opalesque Exclusive: How can one Independent Director serve 567 hedge funds? Source

04.11.2011 Opalesque Exclusive: Caymans hedge fund service providers see more launches, seeding deals and a renewed interest in controlling costs Source

26.10.2011 Opalesque Exclusive: AIFMD will not materially impact on Cayman Islands says Govier Source

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner