CAYMAN ISLANDS FUNDS ADMINISTRATORS ASSOCIATION
“There is also an opportunity
to expand into other areas of
administration that may have
been inaccessible in the past.”
“The depth of talent locally means Cayman is well placed to provide
high quality services to clients as we have the knowledge and
experience here to answer all aspects of their business in one location,
avoiding the need to call multiple jurisdictions and time zones.
“With the rapid improvement of technology and streamlining of
information flows, there is also an opportunity to expand into other
areas of administration that may have been inaccessible in the past.”
He explains that the sophistication of the sector is becoming
ever more complex meaning the skills of his members will also be
increasingly in demand. There has been a huge expansion of closeended
structures (private equity and credit) assets under management
over the last decade, and an increased complexity of their corporate and
“We are seeing institutional investors wanting those structures
to adopt the ‘mutual oversight’ service provider structure more
commonly seen in hedge funds: independent fund administrator,
auditor and directors.
“Increasingly managers are seeing this as access to expertise and
technology, not as something forced on them,” he says.
“Fund administration of these close-ended structures can provide
managers with the technology to handle this complexity efficiently; in
addition to the accounting, investor services and compliance service
roles, this market also requires a more specialised type of portfolio
operational support, often daily.
“While investor capital is locked up, private credit portfolios in
particular are usually extremely active.”
Education and outreach
To facilitate the expansion of the industry the CIFAA continues to
focus on education as well. Highlights include the Fund Administration
course it runs twice a year (for 10+ years), supporting the National
Workforce Development Agency Colour Accounting course.
It also provides scholarships to the Central Law Training Certificate
and Diploma in Fund Administration and is working with other
industry bodies on a video series that educates school students on
the significance of financial services in the Cayman Islands.
Rossiter is also keen that the CIFAA engages more with members
to ensure it has the resources to meet this agenda, and make sure it
is aware of their issues and concerns on a timely basis.
“We have expanded our sub-committees and their membership
to cover each area of focus and increased the frequency of our
meetings. We now have specialised sub-committees on education
and training, AML, regulation & legislation, communication and
membership, and events,” he says.
“A huge number of changes in the geopolitical landscape are expected
in 2019. This means there is a lot of opportunity for active managers of
all types, so we will keep an eye on the implications of those changes,
and the opportunities for Cayman, and adapt accordingly.”
CAYMAN FUNDS | 2019 21
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he says. “We want to ensure that what happens is proportionate
and appropriate. We have a number of working groups and regular
briefings so we can represent our members in the best way possible.
“That dialogue and close relationship between government, the
regulator and industry has always been a strength of Cayman and is
a big reason for its success. We need to ensure we never lose that.”
The talent pool
This has also helped create a vibrant and talented funds industry on
Cayman. Rossiter argues that the quality of the fund administrators is
as high as anywhere in the world and this is partly due to the pool of
talent based there. What is more, advances in technology mean it is
only set to get better.
“There are a large number of talented lawyers and accountants on
Cayman across the financial services industry, and the high quality of
the firms here have always provided a fertile training ground for fund
administrators,” Rossiter says.