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Bailey McCann, Opalesque New York:

The era of the robo-director for hedge funds may have come to an end according to delegates at the most recent Opalesque Cayman Roundtable. Cayman financial regulator CIMA issued new guidance for directors early last year, and participants say that even before the formal guidance document, directors were taking a more refined, bespoke approach to fund governance.

"In reality the industry has, in any case, been pushed toward self-regulation by the demands of institutional investors for stronger oversight. This has fast tracked recent changes in best practices, independence and capacity ahead of any formal regulations. However, CIMA has responded with the Director Registration and Licensing Law ("DRLL") in 2014 which requires an annual confirmation of contact details and, while falling short of regulation, does give them the power to refuse or remove the registration of a director," explains Darren Stainrod, Principal, HighWater Limited.

HighWater provides professional director services to funds in Cayman.

Under CIMA rules, directors with more than 20 funds will be subject to a 'fit and proper' test to ensure that they aren't merely rubber stamping fund documents, but actually know what is happening in each of the firms. "Importantly it allows CIMA to have updated information on who the current directors are on funds so they can contact them if anything goes wrong. Prior to the DRLL much of the data was old and dire......................

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