Relocating European Investment Managers Offshore

The recent implementation of the European Alternative Investment Fund Managers Directive ("AIFMD") in Europe will have forced investment managers based in the European Economic Area ("EEA") to assess the impact of AIFMD on their businesses.

If they have not already done so, many managers who are not actively marketing to EEA based investors will be considering relocating their businesses offshore to avoid the application of AIFMD. For those looking to make the switch the Cayman Islands is an excellent choice of jurisdiction.

Cayman's Securities and Investment Business Law will allow many investment managers to set-up as "excluded persons" at low cost and with minimal regulatory oversight and compliance requirements. Entity formation may be completed quickly with low ongoing compliance costs.