CAYMAN ISLANDS Law and Practice Contributed by: Christie Walton, Patrick Rosenfeld and Philip Dickinson, Maples Group
3.3.8 Marketing Authorisation/Notification Process See 3.1.1 Fund Structures . 3.3.9 Post-Marketing Ongoing Requirements See 3.1.1 Fund Structures . 3.3.10 Investor Protection Rules See 3.1.1 Fund Structures . 3.3.11 Approach of the Regulator See 3.1.1 Fund Structures . 3.4 Operational Requirements See 3.1.1 Fund Structures . 3.5 Fund Finance See 3.1.1 Fund Structures . 3.6 Tax Regime See 3.1.1 Fund Structures . 4. Legal, Regulatory or Tax Changes 4.1 Recent Developments and Proposals for Reform BOTA On 24 November 2023, the Parliament of the Cayman Islands passed the Beneficial Owner - ship Transparency Act (As Revised) (BOTA), which came into force on 31 July 2024. The BOTA implements a number of changes to the previous Cayman Islands beneficial ownership regime (BOR), including as follows: • New in-scope entities – The prior regime applied only to companies, LLCs and LLPs. The BOTA brings additional types of enti - ties into scope, including exempted limited partnerships. Non-Cayman Islands entities
(including those registered as foreign persons in the Cayman Islands, typically to act as the general partner of an exempted limited part - nership) and certain other categories of legal persons are carved out of BOTA (eg, certain charities and not-for-profits). • Definition of beneficial owner – The BOTA provides for an updated definition of “ben - eficial owner” (based on ownership and/or control). • Removal of exemptions – The majority of the exemptions that applied under the prior regime have been removed in favour of cer - tain “alternative routes to compliance”, mean - ing that the in-scope entity would not (where applicable) be required to report its beneficial owners, nor establish a beneficial ownership register, but rather report limited “required particulars”. Mutual funds and private funds registered with CIMA are able to apply an “alternate route to compliance” by which they must supply the contact details of a service provider licensed or registered under a regulatory law and located within the Cayman Islands that will provide ben - eficial ownership information to the competent authority on request within 24 hours (or any other time the competent authority may reasonably request). In an investment fund structure, only the regis - tered fund can take advantage of the alternative route to compliance, so other vehicles such as trading subsidiaries, blocker entities and general partner entities are in-scope and are required to establish and maintain a beneficial owner - ship register and to report the details of their beneficial owners to the competent authority on an ongoing basis. However, in the context of trading subsidiaries or blocker entities that are owned/controlled by the relevant Cayman
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