CAYMAN ISLANDS Law and Practice Contributed by: Christie Walton, Patrick Rosenfeld and Philip Dickinson, Maples Group
3.1.3 Limited Liability See 3.1.1 Fund Structures . 3.1.4 Disclosure Requirements See 3.1.1 Fund Structures . 3.2 Fund Investment 3.2.1 Types of Investors in Retail Funds See 3.1.1 Fund Structures . 3.2.2 Legal Structures Used by Fund Managers See 3.1.1 Fund Structures . 3.2.3 Restrictions on Investors See 3.1.1 Fund Structures . 3.3 Regulatory Environment 3.3.1 Regulatory Regime See 3.1.1 Fund Structures . 3.3.2 Requirements for Non-Local Service Providers See 3.1.1 Fund Structures . 3.3.3 Local Regulatory Requirements for Non- Local Managers See 3.1.1 Fund Structures . 3.3.4 Regulatory Approval Process See 3.1.1 Fund Structures . 3.3.5 Rules Concerning Pre-Marketing of Retail Funds See 3.1.1 Fund Structures . 3.3.6 Rules Concerning Marketing of Retail Funds See 3.1.1 Fund Structures . 3.3.7 Marketing of Retail Funds See 3.1.1 Fund Structures .
will be undertaken by persons who have suf - ficient expertise and are fit and proper to be directors (or, as the case may be, managers or officers in their respective positions), and that the business of the fund will be carried out in a proper way. Funds that have obtained a licence from CIMA are not subject to a mini - mum initial investment amount. • The “administered mutual fund” – this type of fund is not subject to a minimum initial invest - ment; however, instead of going through the licensing process, the fund is required to designate a “principal office” in the Cay - man Islands at the office of a CIMA-licensed mutual fund administrator. • The “registered mutual fund” – this type of fund must have either (i) a minimum initial investment amount of KYD80,000 (or its equivalent in another currency), which will thus render it not suitable as a retail fund, or (ii) its equity interests listed on a recog - nised stock exchange. Any mutual fund that falls within the definition of a “master fund” under the Mutual Funds Act must register as a “master fund” under the registered mutual fund category. • The “limited investor fund” – this type of fund must have no more than 15 investors, who must be capable of appointing and remov - ing the operator(s). Prior to the admission of a sixteenth investor, a limited investor fund will be required to re-register with CIMA under one of the other heads of regulation described above. Unlike a registered mutual fund, a limited investor fund is not subject to any minimum initial investment amount. 3.1.2 Common Process for Setting Up Investment Funds See 3.1.1 Fund Structures .
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