The Cayman Islands Gears-Up For AIFMD

From the initial draft of the Alternative Investment Fund Managers Directive (AIFMD) back in April 2009, through to the adoption of the AIFMD on 21 July 2011 and the long awaited publication of the Level Two Regulations by the European Commission in December 2012, the Cayman Islands has been preparing for the impact of the AIFMD on its regulated funds regime. Working groups composed of members of Cayman Islands Government, the Cayman Islands Monetary Authority (CIMA) and the investment funds industry have assisted in the development of a strategy for the Cayman Islands in approaching the AIFMD.

The AIFMD provides a European Union (EU) framework for the regulation and oversight of alternative investment fund managers. Having been a major source of great uncertainty for several years, the Level Two Regulations provide the basis for the implementation of the AIFMD across Europe from July 2013.