Increased Fund Governance And Regulation Keeps Cayman At The Forefront – Hedgeweek

DMS Managing Director Don W. Ebanks discusses topical governance issues in an interview with Hedgeweek for its special report, Cayman Islands Hedge Fund Services 2016.

With the Directors Registration & Licensing Law now up and running, CIMA is placing more emphasis on supervising directors to Cayman funds. Do you think it is a good idea to have such a register in place?

DWE: I think it is correct that there is more emphasis on regulating directors. The Directors Registration & Licensing Law ("DRLL") creates a framework for authorization (registration or licensing) of hedge fund directors and adds enforcement tools to those which already exist in the Mutual Funds Law (which governs hedge funds in Cayman). For example Section 30(3) (c) of the Mutual Funds Law gives CIMA the power to require the substitution of any director of a regulated fund. The DRLL goes further and provides for, inter alia, the effective disqualification of hedge fund directors through Section