Legal Market Overview
Despite the severe difficulties posed by the Covid-19 pandemic, the Cayman Islands remains a stable offshore legal market, renowned in particular for its vast pool of investment funds. As of December 2020, there were 24,591 regulated funds, compared to 10,857 from the previous year, according to Cayman Islands Monetary Authority statistics. This figure accounts for almost half of the world’s assets under management.
New regulatory regimes have thus signalled a new era for regulatory and compliance work in the jurisdiction. Economic substance requirements forced firms in the jurisdiction to either consolidate their standalone regulatory expertise or enhance the advice given on large deals. In 2021, the economic substance regime was also extended to include partnerships, broadening its oversight.
Beyond funds and regulatory work, the region is increasingly prominent for SPAC work, cryptocurrencies, global insurance and reinsurance issues, and big-ticket M&A deals. Dispute resolution also continues to be at the heart of many firms’ practices; commercial disputes involving insolvencies, funds, trusts, insurance matters, fraud and asset-tracing issues dominate.