Cayman Islands Funds - Governance Update

Further to our update in June 2023, all regulated Cayman Islands investment funds and regulated managers or advisers are reminded of the new governance rules issued by the Cayman Islands Monetary Authority (CIMA).

The following rules come into force on 14 October 2023:

• Rule on Corporate Governance for Regulated Entities
• Rule and Statement of Guidance on Internal Controls for Regulated Entities

The focus of the new rules is to ensure that regulated entities are not only operationally compliant but also properly documenting that compliance. In many cases, particularly for private funds, this may mean a shift in emphasis towards formal rather than informal meetings of the fund's governing body and a formalised process for receiving and reviewing compliance, legal and service provider reports as well as monitoring and managing the fund's risks and internal controls.