Overview

The Cayman Islands is the leading jurisdiction for the formation of alternative investment funds, having approximately 9,990 registered, administered and licensed funds under the Mutual Funds Law of the Cayman Islands.

The MFL requires all investment funds falling within its definition of a "mutual fund" to be registered, administered or licensed with CIMA, unless such mutual fund is an "excluded fund", being a mutual fund that is not a master fund domiciled in the Cayman Islands and having 15 or less investors, the majority in number whom can appoint and remove the fund directors, general partner and trustees.

This guide from Harneys provides a comprehensive funds factsheet for the Cayman Islands and offers detailed guidance on fund vehicles; categories of fund; functionaries / service providers; financial statements and audit; annual return; fund documentation; directors / authorised representative; Anti-Money Laundering Regulations; and tax.

This article first appeared in the June 2012 edition of Hedgeweek.