We are pleased to announce that Calderwood has once again been shortlisted for Best Offshore Governance Firm at the 2023 HFM US Service Providers Awards. We hope to have another successful evening, having been named as the winner last year! The awards recognise excellence among US hedge fund service providers over the past 12-months and we’d like to thank all of our clients for your fantastic support. The awards dinner will be held at Guastavino's, New York next month.
Work Continues With AIMA Cayman
Co-founder Ronan continues in his role as Chairman of the local Cayman Islands Chapter of AIMA, having been re-elected for an additional two-year term last year. Ronan took the helm in 2020 and continuing the excellent work of his predecessors, has helped provide leadership to the industry through a challenging period.
During the past three years, AIMA Cayman has been closely involved in assisting the government with its steps to enhance the jurisdiction’s AML compliance framework, as well as participating in AIMA’s events in New York and assisting with educational and community activities. “It has been a great privilege to represent AIMA Cayman. I would like to thank all of our committee members for their incredible efforts over this time and I look forward to continuing to serve the committee next year,” Ronan said.
More Great Fun On The Greens
Thanks to everyone who came along to the Calderwood Golf Day in June. We had a fantastic day on the greens at the North Sound Club in Cayman as the event moved into its fifth year. Congratulations to the winning team members and thanks again to everyone for taking part. We’re already looking forward to next year!
Cayman Preps for FATF Sign Off
Following recent news that the Cayman Islands has been made eligible for removal from the Financial Action Task Force’s (FATF) list of countries under increased monitoring for AML/CFT, subject to a successful onsite inspection, industry focus has now moved towards this inspection, expected to take place in late August/early September.
Preparations are well underway for what is a standard requirement of the delisting process and will assess how the Cayman Islands AML Action Plan is operating in practice as well as its sustainability. Overall, this development has been warmly received in the industry and pending a successful onsite visit, the Cayman Islands is anticipating potential de-listing confirmation at the next FATF Plenary in October.
CRS Compliance Form Deadline
Now that the 31 July deadline for 2022 CRS and FATCA Declarations has passed, the next key date to be aware of is the submission of the 2022 CRS Compliance Form, which is due on 15 September 2023. Earlier this year, the Department for International Tax Cooperation (DITC) issued an updated list of CRS Reportable Jurisdictions, along with a reminder to include the date of birth and TIN for all persons included in the reporting. Functionality has also been added to the DITC Portal to deactivate a Financial Institution (FI) that has either ceased to exist or is no longer a Cayman reporting FI. If you have any questions regarding tax information compliance then please reach out to a member of our team.
CIMA Highlights Cybersecurity Best Practice
The Cayman Islands Monetary Authority (CIMA) has issued a Thematic Cybersecurity Review, outlining best practice for financial institutions and regulated entities. Having initially issued guidance in May 2020, CIMA has undertaken this review of the financial sector primarily to cover remote working practices introduced since Covid. Among the observed best practices were aligning cybersecurity frameworks with international standards and having well-established control frameworks for managing IT systems with suitable governance and reporting structures including appropriate segregation of duties. Detailed Board approved cybersecurity strategies, policies and procedures should be in place, as well as adequate cyber risk insurance. Also noted were well-documented notification protocols and incident response plans for data losses and breach incidents, including containment and recovery measures.
AIFMD 2.0 on the Horizon
Preparations are underway in the EU for AIFMD 2.0, with amendments coming to the wide-ranging European fund legislation loosely timetabled to take effect from 2025. The delegation by an AIFM of tasks such as portfolio management or risk management to third countries is one area where changes are expected, with the updated law likely to include increased reporting requirements, although the ability for AIFMs to delegate will still be retained. Other new proposals under AIMFD 2.0 include changes regarding risk retention for loan origination, provisions for liquidity risk management and cross border depository services.
Cayman ESG Lawyers Join Forces for Good
A group of ESG-focused lawyers have formed a working group in the Cayman Islands, aimed at encouraging climate-focused drafting in transaction documents. Working with the international Chancery Lane Project initiative, the group’s initial objective is to adapt various net zero clauses to Cayman Islands law, with a view to using them in standard documents. As a small, low-lying territory, Cayman is at the front-line of climate change and the long-term vision for the group, led by Collas Crill, is a pan-Caribbean ESG bond, to attract investment for climate resilience projects.
Award-Winning Governance for Global Investment Funds
