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Bailey McCann, Opalesque New York:

Cayman regulators are considering changes to the LLC laws there, and that could lead to an increase in the number of governance committees, according to delegates at the recent Opalesque Cayman Roundtable. Updates to the LLC laws follow an earlier update to the Exempt Limited Partnership law. Both signal that the Cayman regulators are trying to remain competitive as other jurisdictions change their expectations of financial regulation.

"My view is that the LLC law is appealing because it gives managers flexibility and the ability to bypass the issuance of shares and the concept of share premium. Investors can have their capital account which is the structure they are accustomed to in Delaware structures; so on that level, it is very appealing. From my understanding it also gives flexibility to establish a management committee or a group of managing members who can oversee the fund entity, in the same manner as a Board or an advisory committee," said Leanne Golding, Senior Vice President, at The Harbour Trust Co.

The change in Cayman law also has implications for funds as they work through the requirements of the Volcker Rule. Jason Allison, a Partner at Cayman law firm walkers explains it this way - "What we have seen even for Delaware LLCs is that the Cayman Islands-based independent directors often control those vehicles. This trend evolved principally so that some of our clients could navigate the Volcker Rule, so independent b......................

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