Darwin believed that evolution takes place over long periods of time and the development of the Cayman Islands mutual fund industry may be further proof of his theory. Admittedly it is taking years rather than millennia, however, rumour has it that the process of modernizing the Cayman Islands legislation governing the mutual fund industry in the British Overseas Territory is a complex and careful process.
One legislative change, the Cayman Islands law implementing the EU Savings Tax Directive has been relatively swift, however. The Reporting of Savings Income Information (European Union) Law (the "Law"), 2005, has provided guidance as to what obligations, if any, the EU legislation would mean for funds domiciled in the Cayman Islands. In a nutshell, where the paying agent, usually the administrator, is located in the Cayman Islands and the fund domiciled in Cayman is a section 5(1) fund under the Mutual Funds law, i.e., a licensed fund, which in addition is listed on the Cayman
