Cayman Islands Legislative Update

CHANGES TO THE EXEMPTED LIMITED PARTNERSHIP LAW

The Cayman Islands legislature has approved a major overhaul of the jurisdiction's Exempted Limited Partnership Law ("ELP Law"). The ELP Law was first introduced in 1991 and has been periodically updated to meet the changing requirements of the financial services industry. As a result, the exempted limited partnership ("ELP") has been one of the Cayman Islands' most successful offerings, particularly popular with the investment fund community. As at 31 December 2013, there were 14,355 active exempted limited partnerships on the register, 2,368 of which were formed during 2013 (a higher rate of formations than during the previous peak years of 2007/8). The new and improved ELP Law enhances and clarifies the law in a number of areas to promote the continued popularity of the ELP.