Legal Insights

What are the key laws and other sets of rules that govern Cayman Islands’ investment funds? Open-ended funds The Mutual Funds Law (for open-ended funds) and the Private Funds Law (for closed-ended funds) are the two main statutes relevant to the regulation of investment funds in the Cayman…

More thoughts on the ruling in The Matter of Padma Fund L.P. and potential impac In The Matter of Padma Fund L.P. [FSD 201 of 2021] (RJP), the Cayman Grand Court held that the Cayman Court does not have jurisdiction to order the winding up of a Cayman…

The privatization of Chinese businesses incorporated in the Cayman Islands that are listed on the NASDAQ Stock Market (“NASDAQ”) or the New York Stock Exchange (“NYSE”) has continued to surge throughout the Covid-19 pandemic and there are currently no signs of a slowdown. For example, JOYY’s two largest…

The Grand Court in the Cayman Islands recently confirmed the appropriate insolvency test to be applied pursuant to section 224 of the Companies Act (2021 Revision) (“Companies Act”) in respect of a Cayman Islands segregated portfolio company (“SPC”), in a judgment delivered in respect of Obelisk Global Fund…

Last year saw an explosion of special purpose acquisition companies (SPACs) in the US, largely driven by favourable economic returns to SPAC IPO sponsors, liquidity, and pricing certainty offered by SPACs to target companies and investors. The extended low interest rate environment and the speed to market that…

The Cayman Islands Monetary Authority (“CIMA”) in December 2020 published its preliminary findings from on-site inspections (“Inspections”) conducted of Registered Persons (“RPs”) as defined pursuant to schedule 4 and section 5(4) of the Securities Investment Business Act (“SIBA”). RPs cover Cayman Investment Advisors, Investment Managers, Securities Brokers, Deal…

Regulatory framework and authorities How is fund management regulated in your jurisdiction? Which authorities have primary responsibility for regulating funds, fund managers and those marketing funds? The main regulatory body in the Cayman Islands that regulates open-ended investment funds, closed-ended investment funds, fund managers and parties marketing investment…

Administrative Fines Regulations in respect of Cayman Private Funds 1.1. The administrative fine regime in the Cayman Islands was implemented pursuant to the Cayman Islands’ Monetary Authority (Administrative) Fines (Amendment Regulations), 2020, as amended (“Administrative Fines Regulations”) and extend the application of the fines administered by CIMA from…