Government Requires Registration Of Master Funds

Introduction

When did this take effect?

What needs to be done to register?

What are a regulated master fund's ongoing obligations?

Introduction

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 Legislative Assembly passed the relevant legislation on December 5 2011 and it came into force on December 22. 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