AIFMD Update – New AIFMD Regime for Cayman Islands Investment Funds and Cayman Islands Investment Fund Managers

Cayman Islands based investment funds and investment managers are regulated by the Cayman Islands Monetary Authority ("CIMA") under the Mutual Funds Law ("MFL") and Securities Investment Business Law ("SIBL") respectively. The Cayman Islands government has recently proposed amendments to these laws in order to create a Cayman Islands regulatory regime which is consistent with the standards of regulation under the Alternative Investment Fund Manager Directive ("AIFMD"). It is hoped that by introducing a regime in the Cayman Islands which is consistent with the AIFMD (a "Cayman AIFMD Regime"), the European Securities and Markets Authority ("ESMA") and European Commission ("EC") will consider the Cayman Islands for an AIFMD passport extension when it carries out its forthcoming country by country review later this year. Currently, Cayman Islands entities are able to operate within the national private placement regime under the AIFMD but this regime is anticipated to stay in place only until 2018. Read more