Hedge Funds
Recognizing the world-wide trend and phenomenal growth area in mutual funds, the Cayman Islands enacted its Mutual Funds Law in 1993. The primary objective of the law was to provide legislation for flexible but effective regulation to a fast-growing sector with widespread implications for our financial industry and position as one of the world's leading international financial centers. In drafting the legislation, the fact that Cayman tended to attract institutional and sophisticated, high-net-worth investors was taken into consideration, as was the existing good practice and high standard of self-regulation. The law, therefore, aims to ensure that only those with sound reputation and appropriate expertise are permitted to establish and administer mutual funds in the Cayman Islands.
Not all mutual funds are regulated under the law. Not required to be registered are close-ended funds (i.e., those with no redemption or repurchase rights to the investors), debt issues, and funds with shares held by no more than 15 investors who by majority are capable of appointing or removing the operators of the fund (i.e., directors, trustees and general partners). The majority of the world's hedge funds are registered in the Cayman Islands.
IMS specializes in providing directors or operators to hedge funds.
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