Managers scheduled to launch new Cayman funds can now expect greater efficiencies. One of these improvements is in the form of the new e-registration launched by the Cayman Islands Monetary Authority (“CIMA”).

Less paper

The move, announced by CIMA on 14 September 2012, means that Cayman fund service providers will handle less hard copies of fund documentation, which can seem voluminous at times. This includes hundreds of pages of offering memoranda, consent letters from administrators and auditors, certificates of incorporation and registration and Cayman fund application forms. Hopefully, by adopting this approach, CIMA will no longer require a follow-up filing of originals of Cayman fund documentation for new Cayman fund registrations.

Quicker response time

With new Cayman fund applications being submitted electronically, CIMA analysts will have immediate receipt of Cayman fund documentation. This means that they will not have to wait a business day or two for hardcopies to arrive at their desks. Such instantaneous receipts will allow quicker review of Cayman fund applications and should put the regulator in a position to provide a speedy response to queries from Cayman fund directors and fund managers.

Certainty

With the advent of e-registration, fund managers and Cayman directors will have more certainty regarding the date that the Cayman fund may commence trading. For example, it was previously understood by stakeholders that CIMA would issue a certificate of registration to a Cayman fund which would bear date of the submission of the hard copy of Cayman fund documentation. This was, of course, on the basis that the Cayman fund registration package was complete. Since e-filing of Cayman fund documentation increases the regulator’s response time, Cayman fund directors will immediately know whether anything is missing from the Cayman fund application and they will have more certainty regarding the date that the Cayman fund may start trading.

Meeting industry standards

By implementing this feature, CIMA is moving in the same direction of service providers in the industry which have developed “green” and environmentally friendly operations. This is different from other jurisdictions where regulators may be seen to be behind industry trends. In this way, CIMA is a regulatory leader in the offshore jurisdiction. It has said “goodbye” to the red-tape and “hello” to more efficient, client-friendly, e-services.

About the Author:

Alric Lindsay is a corporate lawyer, an independent fund director and a director of Lindsay Fiduciary Services (www.lindsay.ky), a company licensed and regulated by the Cayman Islands Monetary Authority. LFS provides independent directors to Cayman Islands based investment funds, registered office services, corporate secretarial services and entity formation services. Alric acts as a director on a number of Cayman-based funds which have a focus on Russia and China. Alric can be contacted at alric@lindsay.ky