The Cayman Islands Government as a result of ongoing discussions
with the U.K. Foreign and Commonwealth Office have developed new
regulatory requirements and fee increases for the Cayman Islands
financial industry. However, for the first time they have proposed
an extraterritorial regulatory regime for foreign administrators to
Cayman Islands funds.
The Mutual Funds Law was introduced to the Cayman Islands on 26
July 1993 and has been consolidated and revised in the Mutual Funds
Law (2009 Revision) (as amended) ("MFL"). The MFL
regulates all hedge funds falling within the definition of a
"mutual fund" (as defined below as supplemented by the
Mutual Funds (Amendment) Law, 2011) established in or operating
from the Cayman Islands, and those who administer mutual funds in
or from the Cayman Islands. Furthermore, the MFL regulates certain
'master funds' which are also mutual funds established in
or operating from the Cayman Islands, with at least two investors,
at least
