The scope of regulatory requirements in the Cayman Islands has increased significantly in recent years and requires Cayman-domiciled entities to meet ongoing regulatory filing requirements, in addition to other obligations as set out by the regulatory...
A Senior Associate at Stuarts Humphries was quoted in relation to recent Cayman Islands legislative reforms in The American Lawyer for their October 2014 offshore section.
The attorney mentions the introduction of The Contracts (Rights of Third Parties) Act, 2014. “The Rights of Third Parties Act provides a statutory deviation from the common law doctrine of privity of contract. Prior to the Rights of Third Parties Act only the parties to a contract had the ability to enforce it; now, any third party who is expressly identified in a contract as having such rights may directly enforce the terms (or a specific term) of the contract,” he explains. “This brings Cayman into line with the modern legislation of key onshore jurisdictions such as the U.K. and the U.S. and provides a more pragmatic and commercial approach for conferring rights on third parties.”
He also addresses the introduction of The Directors Registration and Licensing Act, 2014 when he states, “The new law should give further confidence to hedge fund investors and managers alike that the Cayman Islands regulatory regime remains pertinent and that the Cayman Islands continues to lead the way in providing a suitable regulatory framework for the offshore funds industry in an age when investors expect sufficient but not stifling oversight.”
Published with permission from The American Lawyer.