Alternative Investment Funds Guide 2017: Cayman Islands

1 Regulatory Framework

1.1 What legislation governs the establishment and operation of Alternative Investment Funds?

The Mutual Funds Law (2015 Revision) (the "MF Law") provides for the regulation of open-ended investment funds and mutual fund administrators. Responsibility for regulation under the MF Law rests with the Cayman Islands Monetary Authority ("CIMA"). In addition, the Retail Mutual Funds (Japan) Regulations (2007 Revision) as amended by the Retail Mutual Funds (Japan) (Amendment) Regulations, 2012 (together, the "Japan Regulations"), provide a regulatory regime for retail mutual funds that are marketed to the public in Japan.

Although not Cayman Islands law, the broad scope and extraterritorial effect of the EU Directive on Alternative Investment Fund Managers ("AIFMD") will capture most types of Cayman Alternative Investment Funds, regardless of whether they are open-ended or closed-ended and regardless of their legal structure and investment