From the editor
CAYMAN FUNDS | 2019 3
Cayman Funds is published by
Newton Media Limited.
21-23 Elmfield Road
Telephone: +44 203 301 8207
Telephone: +44 203 301 8214
Telephone: +44 203 301 8202
Production and design
©Newton Media Limited 2019.
All rights reserved.
No part of this publication may be reproduced,
stored in a retrieval system, or transmitted
in any form or by any means, electrical,
mechanical, photocopying, recording or
otherwise without the prior written permission
of the publisher.
The views expressed in Cayman Funds are
not necessarily those shared by the publisher,
Newton Media Limited. Wishing to reflect
the true nature of the market, the editor has
included articles from a number of sources, and
the views expressed are those of the individual
contributors. No responsibility or liability is
accepted by Newton Media Limited for any
loss to any person, legal or physical, as a result
of any statement, fact or figure contained in
This publication is not a substitute for advice
on a specific transaction. The publication
of advertisements does not represent
endorsement by the publisher.
Cayman Funds - ISSN 1754-6060
Cover image: Shutterstock / Jiri Flogel
no regulatory shocks
After several years of relative stagnation, the number of regulated funds in Cayman increased
by 4 percent in 2018—a positive sign that Cayman remains the go-to jurisdiction for the hedge
fund sector, and quite an achievement given the changes that continue to buffet the sector.
A consequence of ever-greater scrutiny on the activities of investors, and the jurisdictions
with which they work, has been something of a flight to quality. Investors want to be
working with regulators that are leading the way in this regard—where transparency,
sound governance and operational efficiency come first and foremost.
This plays to Cayman’s advantages. Its regulator, the Cayman Islands Monetary Authority
(CIMA), has always led from the front when it comes to ensuring the jurisdiction is not
only compliant with new regulations and standards but also has a voice in the process of
those regulations being drafted and how they are applied.
This is not always an easy task. Expectations seem to be constantly increasing; regulations
must be tweaked and updated to remain compliant with the ever-changing demands of
global bodies seeking to enforce such change.
If you have any doubt as to the size and complexity of the task, look no further than
Bermuda’s predicament, having been blacklisted by the EU for failing to implement certain
changes to its legislation relating to economic substance. It appears the problem arose
from a mistake in the editing process relating to aspects of the legislation.
The decision looks likely to be reversed this year, but the scenario proves just how many
hidden pitfalls there can be for regulators. CIMA should be praised for its leadership in this
regard over many years.
Beyond regulatory concerns, however, the zeitgeist of the industry remains technology—
in all its forms. From the potential of artificial intelligence to the possibilities stemming
from blockchain to the investment possibilities enabled by cryptocurrencies, Cayman’s
fund sector remains energised and excited by what is possible with innovation.
The annual Cayman Alternative Investment Summit had technology as a core theme of
the event, with many speakers outlining the possible ways in which technology could
revolutionise the industry.
Whether you home in on cryptocurrencies, the platform that enables their potential in
blockchain or the march of technology into the financial services industry more widely,
there is no doubt that digital disruption is changing industries, businesses and operating
models—at a pace that is unprecedented even in the funds sector.
This publication—through its reporting of our annual roundtable and CAIS, and also through
the many articles by experts in their fields—covers this issue on many levels.
Related to all this seems to also be a new-found desire on Cayman to ensure it is better
understood. It is instrumental in driving forward many innovations that have the potential
to make a positive difference to the world. Yet it remains misunderstood in some ways.
Several commentators in this issue comment on the importance of telling the story
better—explaining the positives that come from tax-neutral jurisdictions such as Cayman
to allow money to be invested around the world.
The government and bodies such as Cayman Finance play a big role in this. They must
ensure they remain ahead of the curve and lead from the front on such important issues.
Business is generally good—Cayman is keeping pace with change and leading from the
front, but challenges will come and ensuring Cayman is well understood will go a long way
to overcome them.
Wyn Jenkins, managing editor
The big debate
The annual EY Cayman Funds
Leading the pack
Cayman helps steer global
A bullish outlook
Leaders from government,
CIMA and the private sector
Cayman Funds 2019
Innovative Cayman remains
number one for funds