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Cayman Funds 2016

the Master LP structure are implementing advisory committees. The new LLC vehicle also represents an opportunity to expand our services and improve corporate governance around these structures as well. This oversight is being requested with greater frequency by underlying investors. Golding: We see that as well. Investor demand is increasingly supporting this initiative. We welcome investors encouraging advisory boards and other initiatives as it makes the whole industry more robust. Ruddick: I love it when investors want to talk to us more. Since the fi nancial crisis, they are speaking up more but still think they should do more. It is their money and they should speak louder. Golding: Yes, we spend an increasing amount of time talking to investors, almost as much as investment managers now. Gorter: We have seen that too, where things are becoming more driven by investors. They are very sophisticated and they know exactly what is on offer in different jurisdictions. They are demanding different levels of compliance and due diligence and better independent directors. Another big thing they are asking about now is cybersecurity. This is an area they are increasingly focused on and they want to know if their managers and their suppliers can deliver. Scott: Our ability to be client-centric is so important. The collaboration that takes place on Cayman is unique and a tremendous strength. Our industry is built on excellence, balance and collaboration and the LLC product ticks all those boxes. What is the latest on the proposed publicly accessible directors database and the idea that government could cap capacity? Smith: It is still on the agenda. CIMA introduced the Directors Registration and Licensing Law in 2014 so the focus since then has been on collecting all the relevant information. Once we are comfortable that the information collected is suffi cient so that we can accurately assess the services provided by the directors, then we can adequately address the question of capacity. Simply applying a number is not the best approach to determining capacity and many other factors must also be taken into account. The same applies to the database. CIMA will look at what information it has in order to determine what can be available to others and in what form. Gathering the information, as CIMA has been, puts us closer to making a decision but as to who would have access, that question has yet to be answered. We have seen changes in this area as investors are being more proactive in requesting information, as are fi duciaries in providing it. Investors now appear to be of the view that all parties involved are more willing to offer information and be transparent. Ruddick: Is there less of a push from investors for this now, would you say? Smith: We still get enquiries but fewer now, which suggests that the recent corporate governance reforms implemented by CIMA have alleviated some of the concerns. Linford: Part of the reason for that could be we asked the investors to give CIMA time to fi rst consult following the revision to the Statement of Guidance on Corporate Governance and the introduction of the director registration regime. We should not assume the investors are no longer interested in this initiative. I think they backed off out of respect for what CIMA did and the fact that CIMA is still gathering information. I do expect the investors to engage with CIMA again on further transparency. “Taking a US concept and adjusting it to English laws was not an easy challenge.” Wayne Panton What is the signifi cance of the Limited Liability Companies (LLCs) Act implemented last year? Short: A Cayman-based LLC product has been talked about for a number of years. The desire was to have a product similar to the Delaware LLC vehicle. Many managers are familiar with that offering. It is something people are comfortable with so the fact that we can now mirror that onshore product is fantastic and offers great fl exibility in terms of what managers want to establish. It is just one more additional offering that Cayman is able to provide. Lock: I am on the fi nancial services legislative subcommittee which is assisting the government in drafting that legislation. The new LLC product and the gazetting of the LLC green bill is a great example of the fantastic collaboration between the private sector and government in Cayman which really assists the jurisdiction and helps keep it as the number one offshore funds and fi nancial services jurisdiction. The LLC will be a useful addition to the current fund vehicles, the exempted company and the exempted limited partnership which have enabled the Cayman Islands to serve the funds industry well. An LLC will be a very fl exible entity and as a much-anticipated new product gives the jurisdiction a fresh opportunity to market itself further in 2016. Gorter: It represents a good marketing story on two fronts. It is a good hybrid product that is responsive to industry needs. It also illustrates that government is willing to look at legislation that will service a need expressed by industry. Panton: It was a great example of collaboration. Taking a US concept and adjusting it to English laws was not an easy challenge but it was an instance of great collaboration between industry and government. Michelle’s department did a great job of getting this to work. It looks like an exempted limited partnership but it is very fl exible and suitable for structuring all sorts of products. It was a marketdriven request. It represents an opportunity to add value to the Cayman product. It will be a real benefi t. Ruddick: We agree that it increases the scope of what Cayman can offer. We are also starting to see a trend whereby some of the new funds using 18 CAYMAN FUNDS | 2016


Cayman Funds 2016
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