CAYMAN ISLANDS Law and Practice Contributed by: Christie Walton, Patrick Rosenfeld and Philip Dickinson, Maples Group
2.3.2 Requirements for Non-Local Service Providers There is generally no requirement for non-local service providers to be regulated in the Cayman Islands. However, all directors of companies reg - ulated by CIMA as mutual funds under the Mutu - al Funds Act must be register with, or licensed by, CIMA pursuant to the Directors Registration and Licensing Act. 2.3.3 Local Regulatory Requirements for Non- Local Managers There is generally no restriction on a fund man - ager from another jurisdiction managing a fund established as a Cayman Islands vehicle. How - ever, if an overseas manager establishes a Cay - man entity to act as the investment manager for a fund or other entity, such Cayman entity may be subject to licensing or registration with CIMA under the Cayman Islands Securities Investment Business Act (As Revised). A Cayman Islands entity acting as a discretionary manager of an investment fund may also be subject to local substance requirements under the Cayman Islands International Tax Co-operation (Eco - Licensed mutual funds must apply to CIMA for a licence to operate. The licensing process can take a few months and a fund must not com - mence operations until the licence has been granted. Administered mutual funds, registered mutual funds and limited investor funds must make an electronic filing with CIMA in the prescribed form and submit an offering document (or summary of terms), service provider consent letters and an application fee before the launch date. nomic Substance) Act (As Revised). 2.3.4 Regulatory Approval Process
Private funds must make an electronic filing with CIMA in the prescribed form and submit an offering document (or summary of terms), ser - vice provider consent letters and an application fee within 21 days of accepting capital commit - ments or, if earlier, prior to the fund receiving any capital contributions for the purpose of invest - ments. 2.3.5 Rules Concerning Pre-Marketing of Alternative Funds See 2.3.6 Rules Concerning Marketing of Alter- native Funds . 2.3.6 Rules Concerning Marketing of Alternative Funds The marketing of investment funds in the Cay - man Islands does not require specific regulatory approval. 2.3.7 Marketing of Alternative Funds Investment funds are typically established as either Cayman Islands exempted companies, exempted limited partnerships, limited liability companies or unit trusts. An exempted com - pany that is not listed on the Cayman Islands Stock Exchange is prohibited from making any invitation to the public in the Cayman Islands to subscribe for any of its securities. Exempted lim - ited partnerships and limited liability companies are prohibited from undertaking business with the public in the Cayman Islands other than so far as may be necessary for the carrying on of their business exterior to the Cayman Islands. If a trust is registered as an “exempted trust”, investors must not – and must not be likely to – include any person who is resident or domiciled in the Cayman Islands (other than exempted and ordinary non-resident Cayman Islands compa - nies or the object of a charitable trust or power).
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