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Cayman Funds 2016

THE OUTLOOK REMAINS POSITIVE The Cayman Islands Monetary Authority and the government of the Cayman Islands have continued to act prudently with appropriate legislation, internal reforms and technological enhancements to business processes to ensure the vitality of the funds sector, as Cindy Scotland, the authority’s managing director, reports. Globally, there was a reported net increase of 134 hedge fund launches in 2015. The funds sector in the Cayman Islands recorded only a slight decrease, and remains healthy. At the end of December 2015, 10,940 mutual funds were registered in the jurisdiction, well ahead of other domiciles. This fi gure is just short of the 11,010 recorded at the end of 2014. An analysis of fund types reveals that these consisted of 7,654 registered funds, 2,805 master funds, 380 administered funds and 101 licensed funds. There were 108 mutual fund administrators managing these funds. Under the Securities and Investment Business Law (SIBL), there were 38 licensees, and 2,485 excluded persons at the end of the period under review. This represents a marginal increase from the 2,314 of the comparable period in 2014. In spite of its consistent leading positon over the past several years, the Cayman Islands has not become complacent with regard to the funds sector. Rather, the Cayman Islands Monetary Authority (CIMA) and the government of the Cayman Islands have continued to act prudently to ensure that this vital aspect of our fi nancial services industry remains viable. Among the measures taken in this regard are the enactment of appropriate legislation, internal reforms and technological enhancements to business processes. 10 CAYMAN FUNDS | 2016 Updating domestic legislation Directors Registration and Licensing Law The Directors Registration and Licensing Law (DRLL) 2014, which came into force on June 4, 2014, gives CIMA certain authorisation and supervisory responsibilities in respect of natural and corporate directors of mutual funds, as well as certain entities that are registered under the SIBL. A total of 24,307 applications have been processed since implementation of the DRLL, which includes applications for renewals for the 2015 calendar year. Mutual Funds Law and SIBL In September 2015, amendments were made to the Mutual Funds Law and the SIBL—key legislation regulating Cayman Islands funds and asset managers. While these amendments were passed in the Legislative Assembly, they have not yet been assented to, pending fi nalisation of the supporting regulations. The objective of the legislation is to allow Cayman-domiciled investment funds and managers to be able to market fund units in the EU using the passport regime of the Alternative Investment Fund Managers Directive (AIFMD). After assessing countries’ regulatory regimes, the levels of supervisory cooperation, protection for investors, competition and the monitoring of systemic risk, the European Securities and Markets Authority (ESMA) is to advise the European Commission on whether the passport should be extended to non-EU managers that manage


Cayman Funds 2016
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