The Private Funds Law (2020)
The Private Funds Law was recently passed into law by the Cayman
Islands legislative assembly. The new law will apply to
closed-ended investment funds, which were previously unregulated in
the Cayman Islands by virtue of the fact that they do not issue
redeemable investment interests. Investment funds that are impacted
by the new law will be required to comply from 7 August 2020.
Application of the Private Funds Law
A "Private Fund" is defined as "a company,
unit trust or partnership whose principal business is the offering
and issuing of its investment interests, the purpose or effectof
which is the pooling of investor funds with the aim of spreading
investment risks and enabling investors to receive profits or gains
from such entity's acquisition, holding management or disposal
of investments" where (i) the investors do not have day
to day control of the investment programme, and (ii) the portfolio
is managed for reward based on the
