Cayman Islands Monetary Authority Consultation On Corporate Governance

In a move designed to include the Cayman Islands in a growing international movement towards the enhancement of corporate governance standards in the financial services market, the Cayman Islands Monetary Authority ("CIMA") commenced a private sector consultation on corporate governance in January 2013.

The proposals being put forward are, broadly, as follows:

• To extend the current Statement of Guidance (the "SOG") issued by CIMA on corporate governance, which currently applies only to licensees, to registered entities, such as a typical hedge fund structure. CIMA's objective is to make the SOG more generic and suitable for cross-sectoral application and to reinforce fundamental corporate governance standards by outlining key management oversight and corporate governance principles, without imposing compulsory rules or standards on the industry.