Who regulates Cayman funds?

the Cayman Islands Monetary Authority (CIMA)
The Private Funds Bill, 2020 and Mutual Funds (Amendment) Bill, 2020 aim to bring private funds and hedge funds with fewer than 15 investors under the regulatory oversight of the Cayman Islands Monetary Authority (CIMA).

Are Cayman private funds regulated?

The Private Funds Act, 2020, requires the registration of closed-ended funds with the Cayman Islands Monetary Authority (CIMA). Mutual funds (e.g., hedge funds) are not caught by this law, and continue to be regulated by the Mutual Funds Act, 2021 Revision, as amended.

Why funds are registered in Cayman Islands?

The common practice for Cayman funds As outlined above, having legal capabilities on the ground in North America, Europe and Asia has meant that the Cayman Islands has been able to readily promote itself as an attractive jurisdiction for hedge funds. It is a common law jurisdiction that people are familiar with.

Are offshore funds regulated?

National rules regulating the activities of offshore funds, especially in the AML area, continue to increase. When offshore funds come into contact with the United States,2 they and their promoters encounter one of the most highly regulated investment management jurisdictions and complex tax codes in the world.

Does Cayman have a central bank?

Cayman Islands Monetary Authority (Cayman Islands Monetary Authority) is a Central Bank located in Grand Cayman Cayman Islands, North America, and was founded in 1997.

What is a Cayman private fund?

Private funds include both Cayman Islands entities and entities established outside the Cayman Islands that offer their investment interests to the public in the Cayman Islands.

What is a Cayman Islands mutual fund?

A mutual fund is any company, trust or partnership either incorporated or established in the Cayman Islands, or if outside the Cayman Islands, managed from the Cayman Islands, which issues equity interest redeemable or repurchaseable at the option of the investor, the purpose of which is the pooling of investors’ funds …

Why do hedge funds domicile in Cayman Islands?

The primary reason for Cayman’s popularity is its tax neutral platform for investment structures. A Cayman fund will generally not be liable for any direct taxes in Cayman and therefore not add a tax layer to any taxation imposed in the jurisdictions where it holds its investments or where its investors are domiciled.

What is a private fund Cayman?

Can a US investor invest in a Cayman fund?

The Non-Cayman Feeder Fund will be targeted at U.S. taxable investors and is often optional. From a tax and regulatory perspective, U.S. taxable investors could invest directly in the Master Fund instead of investing indirectly through their investments in the Non-Cayman Feeder Fund.

Is an ETF an offshore fund?

Exchange Traded Funds TDM Part 27-02-01 – Offshore Funds – has been updated to clarify that the offshore funds rules apply to ETFs and ETCs in the same way as other offshore funds.