New Law - Cayman Hedge Fund Directors'

11 June 2014
The Director Registration and Licensing Law, 2014 affecting all directors of regulated funds (hedge funds) has been gazetted and is to come into force very shortly.
All directors' of Cayman corporate regulated hedge funds and directors of Securities Investment Business Law ('SIBL') Excluded Person investment managers ('Covered Entities') will be required to be registered with the Cayman Islands Monetary Authority ("CIMA") -wherever those directors are located in the world Registration CIMA will maintain a register of Directors who are registered with them and/or licensed by them. Criminal penalties for non-compliance will apply.

Related: Cayman Islands Offshore Company Formation

At this stage, it is not clear who will have access to this information.

The new Law gives CIMA the power to: 1. refuse registration and license applications 2. undertake site inspections to examine affairs or business of any registered of licensed director for compliance with this new law to require information from any person CIMA thinks is acting as a director and who should be registered or licensed but is not a registered or licensed director.

The new Law gives CIMA the following enforcement power: 1. Impose criminal sanctions and penalties 2. suspend or cancel the registration 3. suspend or revoke a license 4. impose conditions on directors 5. require directors to reduce the number of appointments they have (after examining their capacity levels)

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