Split Boards Favoured As Fund Governance Intensifies

The following article, featuring commentary from DMS Executive Director and Chief Compliance Officer Don W. Ebanks, appears in the 2014 Hedgeweek Cayman Islands Special Report.

On 6 December 2013, after a period of consultation with industry practitioners, the Cayman Islands Monetary Authority (CIMA) – the Islands' financial regulator – released its Statement of Guidance for Regulated Mutual Funds ('SoG-MF'). In essence, the SoG-MF codifies and sets guidance on the minimum corporate governance standards required by operators of regulated mutual funds (directors, general partners) and gives the operators a clear understanding of their primary duties.

CIMA expects the oversight, direction and management of a regulated mutual fund to be conducted in a fit and proper manner in accordance with the Mutual Funds Law. The Statement of Guidance seeks to provide the governing body of a regulated mutual fund and its operators with guidance on the minimum expectations for