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Matthias Knab reports from Hong Kong: Gary Linford, Head of Investments and Securities Division of the Cayman Islands Monetary Authority (CIMA) says 37 new funds get presently registered each week, adding up to now over 8000 hedge funds. CIMA can register a hedge fund in five days, provided that the fund is using a Cayman based administrator. 15 of the top 20 administrators have a Cayman subsidiary.
For this year, Linford expects 600 hedge funds to close (out of 1800 newly registered), underlining that this number meets the Cayman long-time averages (1 out of 3, over 13 years). 30 Cayman hedge funds were entangled in the Refco debacle, most of them being affected as counterparties. Out of the 8000 active funds, about 20 will be looked at by Cima for a fraud or other investigation. CIMA has also introduced new “whistle-blowing obligations” directed at auditors, where auditors are now required to report any suspicious issues to the regulator. It may be the case that “more hedge fund managers get into the game than should be in the game”, but Linford relies on the markets to “clean” out the landscape.
Electronic data reporting to provide valuable and reliable intelligence on the industry
With the new electronic reporting being introduced now, CIMA expects to offer meaningful statistics on Cayman registered hedge funds. Linford underlined that with electronic reporting is not linked to new requirements, but simplifies existing filing rules. The electron...................... To view our full article Click here
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