In December 2013, the Cayman Islands Monetary Authority (CIMA) published a Statement of Guidance for Regulated Funds — Corporate Governance (SOG) that sets forth minimum guidance for operators of Cayman Islands regulated funds for the sound and prudent governance of the regulated funds they operate.
The SOG does not create new law but places a focus on the standards expected from operators of regulated funds. Furthermore, operators should note that, in addition to the SOG, the regulation of fund corporate governance in the Cayman Islands will also see the introduction of a new dual registration and licensing regime for directors of Cayman funds and the creation of a CIMA-managed database to assist due diligence on the operators of regulated investment funds. We expect that the legislation required to implement this regime will be in place during the first quarter of 2014.
This note provides a brief summary of the SOG. We urge operators and promoters of Cayman Islands regulated funds to review the corporate governance of the funds they operate, ensure that they are familiar with the existing laws setting forth the duties and obligations of operators and ensure that they implement best practices that meet or exceed the requirements of the SOG. Ogier has extensive experience advising operators of Cayman Islands companies, limited partnerships and trusts, including regulated funds, in respect of their ongoing responsibilities.
Source: The Lawyer