Investment Fund Market Guide – Cayman Islands

31.01.2018

Key features (Register market)

 

Yes/No

Remarks

Settlement free of payment

Yes

 

Settlement against payment

Yes

Refer to CBL’s Eligible currencies and the fund currency specified in fund prospectus.

Disclosure Requirements

Yes

Refer to Disclosure Requirements – Investment Funds – Cayman Islands.

Restrictions on customer

No

 

Restrictions on settlement

No

 

 

 

Remarks

Market type / link type (Settlement link)

Register market

Eligible fund types in CBL

Register market: Funds structured as Exempted Company, Segregated Portfolio Company, Unit Trust and Exempted Limited Partnership

CSD link: n/a

Eligible fund types in CBL

Register market

Common fund vehicles in Cayman Islands include:

  • Exempted Company – The exempted company may redeem or purchase its own shares and may therefore operate as an open-ended corporate fund. Closed-ended corporate funds may also be structured as an exempted company.
  • Segregated Portfolio Company (SPC) – A company established as SPC allows its assets and liabilities to be allocated to different cells or segregated portfolios within the company. Those assets and liabilities in each portfolio would be held separately, and will not form part of the general assets of the company itself.
  • Unit Trust – Generally established under a trust deed with the investors’ interest held as trust units.
  • Exempted Limited Partnership (ELP) – Can be established for both open and closed-ended funds. ELP is the most common vehicle for closed-ended funds such as private equity, venture capital, real estate funds etc.