We are excited to welcome Jason Perras and Rena Strecker to the Calderwood team.
Jason joins Calderwood as an Independent Director and brings heavyweight expertise in the hedge fund and private equity space, joining us from MUFG Alternative Fund Services (Cayman) Ltd, where he was Head of Client Operations and Executive Director, spending 15 years with the firm, including his time with UBS Fund Services (Cayman) Ltd, prior to the MUFG acquisition.
Jason will accept appointments on the boards of investment funds and other related structures, advising on issues regarding corporate governance and regulatory compliance. He previously worked with Deloitte & Touche upon relocating to the Cayman Islands and with PwC in Canada. Jason’s other interests include serving as the Treasurer for the Caribbean Golf Association and as National Team Coordinator for the Cayman Islands Golf Association.
Rena also joins as an Independent Director. She accepts appointments on the boards of captive, insurance and reinsurance companies advising on financial, operational and corporate governance matters.
With over 20 years’ experience in the reinsurance/insurance industry, Rena has held various positions in property & casualty insurance/reinsurance, life & pension and captive insurance. Prior to joining Calderwood, she worked for Greenlight Re in the Cayman Islands as the Team Head for middle office operations. In addition to consulting for AIG in both London and New York, Ms. Strecker served as a Vice President at Goldman Sachs in London in the controller’s department involved with life and pension business and a Lloyds’ property and casualty syndicate.
USA Coast to Coast
We had a fantastic time travelling to the US in the fall. It was so great to see New York thriving again and to catch up with everyone at our drinks event and then collecting Best Offshore Governance Firm at the HFM US Service Providers Awards for the second year in a row. We then headed to the Sohn San Francisco Investment Conference and it was terrific to be back in the city after a few years and see so many friendly faces. We look forward to being back stateside soon in New York and for the Context Miami Summit.
For Calderwood, 2023 has been such an exciting year and with more new faces and our new website to come in 2024, we are looking forward to starting the New Year as a larger firm and continuing our growth story.
We’d like to take this opportunity to wish all our clients a wonderful Christmas and holiday season, and a happy, healthy and prosperous New Year.
Cayman Removed from FATF Grey List
As expected, the Cayman Islands was officially removed from the FATF List of Jurisdictions Under Increased Monitoring, after successfully completing the FATF’s onsite inspection and is now deemed fully compliant after satisfying the FATF’s action points issued in 2021.
“The importance of this achievement cannot be understated,” commented Attorney General, Hon. Samuel Bulgin, KC. “The FATF’s decision confirms that our AML regime effectively deters, detects, arrests and prosecutes financial crimes in the Cayman Islands, and that it also supports other countries’ efforts.”
Following this move, the industry expects the Cayman Islands to now be removed by default from the EU AML List early in 2024. Although the FATF listing has had little impact on the investment fund sector, it has meant some EU related securitisation business has moved to other jurisdictions until this formality with the EU is completed.
Annual Company Fees Increased by Government
The Cayman Islands Government has announced an increase in annual company fees, as of 1 January 2024. The increase reflects the investment in technology to improve the service of the Companies Registrar over the past ten years, during which period fees have remained largely unchanged.
For Exempted Companies with a share capital in the range of 0 to CI$42,000 the annual fee is increased from CI$700 to CI$825, while share capital between $42,001 and $820,000 increases from $1,000 to $1,125. For share capital between CI$820,001 and CI$1,640,000 the new fee is $2,109 and for above CI$640,000 the fee rises to CI$2,693.
The annual fee for a Foreign Company will increase from CI$1,350 to CI$1,550. Annual fees for Limited Liability Companies increase from CI$800 to CI$1,000 and fees for SPC Cells increase from CI$300 to CI$400 (up to a maximum of CI$6,000 or 15 cells). For Foreign Limited Partnerships the annual fee rises from CI$1,350 to CI$1,550.
Officials have said that fees levied by the Cayman Islands Monetary Authority will not increase next year and industry consultation will take place regarding any fee increases in 2025.
Economic Substance Return Filing Deadline
Relevant entities carrying out one or more relevant activities must continue to satisfy the Cayman Islands Economic Substance Test and file the economic substance return form with the Tax Information Authority within 12 months after the end of their financial year. Entities with a financial year of 31 December are therefore required to submit their return by 31 December 2023.
All entities, irrespective of whether they are relevant entities or conducting a relevant activity must make their annual economic substance notification to the Tax Information Authority by 31 January. If you have any questions about this process please do contact us directly.
Renewal Time for Directors and Registered Persons
Directors of mutual funds registered with CIMA and entities registered as a ‘registered person’ under the Cayman Islands Securities Investment Business Act are reminded to renew their registration under the Directors Registration and Licensing Act.
Directors must log on to CIMA’s director portal and pay the required annual fee by 15 January 2024. Failure to register or renew by the deadline may result in a penalty under the administrative fines regime. If a director wishes to cancel a registration and does not intend to continue to act as a director to a relevant entity then cancellation must take place by 31 December 2023, otherwise fees will be due for 2024.
AML Guidance Updated for e-KYC Solutions
Amendments to CIMA’s Guidance Notes on the Prevention and Detection of Money Laundering, Terrorist Financing in the Cayman Islands earlier this year, addressed the use of new technology for e-KYC, remote Customer Due Diligence and ongoing monitoring.
The update in September removed any ambiguity regarding the use of technology for remote, virtual or non-face-to-face due diligence measures, which were initially permitted during the COVID 19 lockdowns. It is now confirmed that financial services providers can adopt a risk-based approach to e-KYC solutions for remote onboarding and continued monitoring.
Service providers should undertake a risk assessment for applying the solutions to their customers, as well as demonstrate that any risks related to its own business have been adequately considered, including an evaluation of the confidence and accuracy of the e-KYC system, as well as its reliability and independence.
Private Funds Lawsuit Against SEC Begins
The opening brief in an action to challenge the SEC’s new rule to regulate private fund advisers was filed by Gibson, Dunn & Crutcher LLP on behalf of a number of fund management associations and groups
Representing the Managed Funds Association, the National Association of Private Fund Managers and the Alternative Investment Management Association, among others, the brief emphasises that Congress intended for private funds to be regulated differently than funds available to retail customers and the SEC does not have the authority to intervene,
It states that the SEC failed to provide a meaningful opportunity to comment on the final rule or perform an adequate cost-benefit analysis, neglecting its statutory duty to consider whether the rule “will promote efficiency, competition, and capital formation”. It said the rule is arbitrary, capricious, and otherwise unlawful, claiming to fix an industry problem, without any evidence of such a problem provided by the SEC.
In Our Community
Calderwood is delighted to sponsor Beads2Cure, a student-led non-profit organisation raising money for the Cayman Islands Cancer Society by making and selling bracelets. The students produce a range of crystal and glass bracelets in various colours to signify different types of cancer and all the proceeds go directly to help cancer patients in the Cayman Islands. Since December 2019 they have raised over $31,000. Further information on Beads2Cure is available from their website and Instagram page.
We are also excited to extend our sponsorship of the Sunset Boys Under 15s and Under 18s football team, supporting them with training shirts, match kits and training slots at the Camana Bay Sports Complex. We are proud of their achievements and look forward to following their progress this season.
Award-Winning Governance for Global Investment Funds
