Cayman Islands Master Funds – Registration

In June 2011, the Cayman Islands Government announced a proposal to require registration of new and existing 'master funds' in a traditional 'master/feeder' structure. The relevant legislation was passed by the Legislative Assembly on 5 December 2011 and, as expected by Cayman industry professionals, the registration and ongoing reporting requirements are not onerous.

In a typical 'master/feeder' structure, most of the assets are held at the master fund level and the Cayman Islands authorities have sought to respond to suggestions from various international bodies to bring master funds under the aegis of the Cayman Islands Monetary Authority's (CIMA) regulatory framework.

Closed-ended funds and master funds that do not have Cayman Islands regulated feeder funds investing in them are not subject to the new registration requirements.