We are back on the road after a restful summer, looking forward to catching up with as many people as possible on our trips to New York, the Bahamas and the West Coast.
It’s exciting to be heading to New York this week for the HFM US Services Awards on 12 September. We are, of course, delighted to have been nominated once again for Best Governance Firm, having won the award for the past two years. We’ll be hosting informal afternoon drinks at Hendrickson'sNYC from 4pm-6.30pm on 12 September so please get in touch if you can join us.
Ronan will also be attending the Private Funds Forum 2024 at Atlantis, Paradise Island, Bahamas, 17-20 September. The following month, Calderwood will be a sponsor at the 15th Annual Sohn San Francisco Investment Conference at the Hyatt Regency on October 15. We will also be at the CoinAlts 2024 conference at the Four Seasons San Francisco the following day. Reach out if you are attending any of these industry events. We’d love to connect!
We are delighted to announce the appointment of Daneka Curro as Senior Board Support Administrator. Daneka has extensive industry experience, joining us from BMO Financial Group in Toronto, where she was Senior Board Affairs Specialist. In this role, Daneka managed a complex capital markets and private wealth portfolio, providing key corporate secretarial support and vital effective board advisory services and governance guidance from a legal and regulatory perspective. She has also held senior law clerk positions within leading national and international law firms, supporting clients in relation to securities, private equity, M&A and regulatory matters.
The Cayman Islands continues to cement its place as the leading global investment funds centre, with more than 30,000 funds registered in the jurisdiction for the first time. According to data from CIMA, as of 4 September there were 30,038 registered investment funds in the Cayman Islands, with 17,080 private funds and 12,957 mutual funds.
“This accomplishment underscores the strength and resilience of our regulatory framework, which continues to inspire confidence from the international funds industry,” said Cindy Scotland, CIMA Managing Director. “It is a clear indication that the Cayman Islands remains the funds centre of choice for fund managers worldwide, reflecting our commitment to maintaining the highest standards of excellence and integrity.”
In terms of key compliance dates, the most immediate focus is the CRS Compliance form, for which arrangements should be well advanced by now. All Financial Institutions with a CRS reporting obligation are required to file the CRS Compliance form, which is in addition to the CRS return. CRS Compliance forms are due for the prior year ending 31 December on 16 September 2024 and must be filed with the Department for International Tax Cooperation.
Changes to beneficial ownership transparency regulations have now come into effect in the Cayman Islands, which captures for the first time certain previously out of scope entities, including limited partnerships and exempted limited partnerships.
As the regulatory framework in the Cayman Islands continues to evolve, this updated legislation is based on the Financial Action Task Force recommendations. Companies, limited liability companies and limited liability partnerships remain in scope of the regulations, while trusts and registered foreign companies are not captured.
Entities in scope are required to identify their beneficial owners and provide these details to their corporate services providers, which will be submitted to the General Registry. Some entities, however, such as Private Funds and Mutual Funds registered with CIMA, can benefit from an 'alternative route to compliance' whereby instead of reporting their beneficial owners they can appoint a “Contact Person” to hold up to date information on their beneficial owners that can be provided to the relevant Cayman Islands authorities within 24 hours of any request. The Contact Person must be a Cayman Islands fund administrator or other entity licensed by CIMA. Cayman counsel are well-positioned to assist fund managers with filing requirements related to the appointment of a Contact Person.
In the later months of 2024, considerations return to the procedures regarding termination, liquidation and deregistration for Cayman Islands funds, to remain compliant with legal obligations and avoid incurring unnecessary fees. CIMA updated its deregistration procedures in August 2022 requiring full payment of annual fees alongside any penalties that may have been imposed before funds can be deregistered.
For a fund to be terminated and dissolved, voluntary liquidation is typically a favoured option compared to a strike-off, as it removes the potential for future liability claims. In order to avoid fees for next year, funds should have completed the deregistration process before the end of the fiscal year, allowing approximately three months to complete the voluntary liquidation process.
Where a strike off is being contemplated for reasons of cost and/or speed, the Registrar of Companies has announced companies seeking to be struck off by 31 December 2024 must file the application with the Registry by 28 October 2024. Please do get in touch if you require any further information about the relevant procedures for deregistration of funds in the Cayman Islands.
Award-Winning Governance for Global Investment Funds
