CAYMAN ISLANDS Trends and Developments Contributed by: Simon Raftopoulos and Benjamin Woolf, Appleby
Trends The Cayman Islands continues to be a jurisdiction of choice for the establishment of investment funds and other corporate vehicles that utilise secured lend- ing arrangements in a variety of forms. The Cayman Islands’ creditor-friendly legislation provides great comfort to counterparties in secured lending trans- actions. Over the past few years, there has been a significant increase in the establishment and use of private credit funds and non-financial institution lending. Continued diversification and sophistication in fund structures will reinforce Cayman’s global leadership in alternative finance. It is expected that the use of private credit lending in place of traditional financial institutions will continue to increase over the next 12 months and beyond.
the consent of the court or liquidator, depending on the circumstances. The courts of the Cayman Islands will observe and give effect to the choice of the applicable governing law of an agreement assuming that the choice of law has been made in good faith and would be regard- ed as a valid and binding selection which would be upheld by the courts of that jurisdiction as a matter of the relevant law. In the case of a foreign judgment, the Cayman Islands courts will recognise and enforce the same without re- examination of the merits of the case, provided that such judgment is given by a foreign court of com- petent jurisdiction and is final, for a liquidated sum, not in respect of taxes or a fine or penalty, and was not obtained in a manner and is not of a kind that its enforcement is contrary to the public policy of the Cayman Islands. Updates and Trends Beneficial Ownership Regime On 31 July 2024, the Beneficial Ownership Transpar- ency Act, 2023 and accompanying regulations were brought into force. The Beneficial Ownership Regime replaced the former requirements to maintain a ben- eficial ownership register that had been set out in a variety of statutes. An alternative route to compliance (namely, notification of certain required particulars rather than maintaining a beneficial ownership regis- ter) is available for: • entities or subsidiaries of entities listed on the Cay - man Islands Stock Exchange or another approved stock exchange; • entities licensed under a Cayman Islands regula- tory law; and • mutual funds or private funds regulated by CIMA. Cayman Islands registered funds can nominate a con- tact person to hold up-to-date information on their beneficial owners that can be provided to the rele- vant 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.
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