The Commonwealth's mutual fund industry attests to Darwin's theory that evolution takes place over a long period of time. It is undeniable that this will take years rather than thousands of years. However, the process of managing the modernization of the Cayman mutual fund industry seems to be a complicated process.
The rapid growth of the Cayman Islands hedge fund industry is the reason behind the current review of the regulatory regime. The number of funds registered or licensed by the Cayman Islands Financial Services Authority [CIMA] has been growing at an almost unbelievable rate.
CIMA established the Cayman Islands Fund Managers Association, the Cayman Islands Professional Accountants Association, the Cayman Islands Bar Association and the Cayman Islands Bar Association representative working group to assess CIMA's own policy and research department recommendations. The supervision of the mutual fund industry has been reviewed.
The goal of the working group is to further improve the regulation of the fund industry with a view to striking a balance between the requirements of a competitive offshore financial centre and the international standards required by complex offshore financial centres. International agency.
There may be four types of funds instead of two types. The possible categories are standard retail public funds [no minimum subscriptions] available to the public; private funds are managed, licensed Cayman fund managers provide registered offices [minimum subscription amount is $10,000]; recognized funds, in designated securities transactions Professional funds that are listed or registered or registered in a designated jurisdiction, professional funds are only available to professional investors, and the minimum subscription amount is higher.
The name of the Commonwealth Law in the Cayman Islands caused confusion, so the Working Group proposed to name the revised "mutual fund law" the "investment fund law". Those who merge hedge funds into mutual funds should be able to accept that hedge funds are an investment fund.
The other proposal of the working group, although not intended to save money for market participants, may produce such a result, which was previously intended to provide CIMA with broader powers to avoid auditing of licensed or registered funds. Claim. If the fund does not start or the fund has only a few investors injured, then this exemption may prove to be desirable.
The above is just a style of change that can be expected, and it is not a complete list of all reforms that are reasonably implemented. The timing of implementation is difficult to predict, but the review process has been going on for many years and may end soon, although new laws and regulations need to be drafted and approved to prepare for the new regulatory regime.
Previously, Cayman's regulators were able to achieve a delicate balance, strike a proper balance between regulation and the needs of the fund industry, and they intend to further improve offshore jurisdictions that already have high demand. They hope that the Cayman Islands will continue to be a natural choice for fund professionals.
Orignal From: Modernizing the Commonwealth's mutual fund law
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