Cayman Funds Newsletter - June 2016

Brexit - Cayman Islands

It was announced on 23 June 2016, that the British public voted in favour of a so-called “Brexit”, or exit from the European Union (“EU“). Whilst the result of the referendum is not legally binding on the UK Government it is politically so and, furthermore, the governing Conservative Party promised that the referendum would be binding in their manifesto.

US & UK FATCA Update 2016

Further to our last newsletter, the Department of International Tax Cooperation (“DITC”) has issued a further advisory confirming a final extension of both the notification and the reporting deadlines in respect of US FATCA and UK FATCA to Wednesday, 10 August 2016. The DITC has also recently updated the user guide which provides assistance to Financial Institutions on the notification and reporting process, as well as correcting any errors in the US FATCA 2014 reports filed last year.

CRS Update 2016

The Cayman Islands Ministry for Financial Services has now published the CRS Guidance Notes. The Guidance Notes have been developed in consultation with the Cayman Islands CRS Working Group and are intended to provide practical assistance on aspects of the CRS that are particular to the Cayman Islands and as a supplement to CRS Regulations.The first notification due date for the CRS in the Cayman Islands is 30 April 2017. The first reporting due date for the CRS in the Cayman Islands is 31 May 2017.

AIFMD Update

A decision on the inclusion of the Cayman Islands in the EU’s AIFMD (Alternative Investment Fund Managers Directive) Passport scheme is expected shortly. If granted, this would secure future access to European investors for funds either managed or registered in the Cayman Islands.

Cayman Islands Compliance and Transparency

The Cayman Islands has implemented various legislation, entered into inter-governmental agreements and otherwise adheres to other global standards so that it is compliant in all aspects of tax transparency and information exchange.

Cayman Finance Supports Beneficial Ownership System Updates with the UK

Cayman Finance has supported the Cayman Islands Government in its announcement of the signing of an agreement by the UK and the Cayman Islands on enhancements to its existing beneficial ownership system.

Cayman Islands Revises Secrecy Laws

The Cayman Islands Government has published the Confidential Information Disclosure Bill 2016, which calls for the abolition of the current criminal offence for disclosure of confidential information, other than ‘in the ordinary course of business’. The new Bill also introduces a ‘whistle-blower’ defence for disclosures made in good faith evidencing wrongdoing, a serious threat to the life, health or safety of a person or a serious threat to the environment. This is consistent with a more general move towards protecting public interest disclosures. The Government has stated its intention that the Bill should pass into law by September 2016.

Cayman Finance Reports Cayman Panama Paper Links as Minor

The publishing of the online database of entities, officers and intermediaries linked to the Panama Papers released on 9 May 2016 show links to the Cayman Islands to be relatively minor in terms of the volume of data. It was found of the 214,000 offshore companies set up by the Panamanian law firm Mossack Fonseca, only 104 (0.05%) has a link to the Cayman Islands.

Ongoing Obligations for Funds Registered Under Section 4 (3) of the Mutual Funds Act

Stuarts released its guidance note on the ongoing obligations for funds registered under section 4(3) of the Mutual Funds Act.

Investments and Securities Q2 2016

Read the latest Licences / Registrations figures in effect in the Cayman Islands.

Publications

• HFM Week Cayman
• Hedgeweek Cayman Report 2016
• Getting The Deal Through Private Equity 2016