The investment funds industry in the Cayman Islands is regulated by the Mutual Funds Law (2012 Revision) and is a global leader in its field, with thousands of funds that represent billions of dollars of assets under management.
The Cayman Islands is attractive as a domicile for investment funds due to the high degree of professional service providers and its flexible, nimble approach that caters to the needs of the client. Most investment funds established in the Cayman Islands cater to the institutional and sophisticated client.
Under the Mutual Funds Law the Cayman Islands offers four types of funds which provide flexibility with regard to investment objectives and fund structures while mandating full transparency to investors via the fund’s offering memorandum. This approach, combined with the licensing of mutual funds by the Cayman Islands Monetary Authority and the Authority’s regulation of Mutual fund Administrators, provides an effective regulatory regime for the industry. In addition, the Cayman Islands policy is to only allow applicants with sound reputations and expertise to incorporate or administer mutual funds in the Cayman Islands.