Statement on AIFMD (2017-10-17)

Summary

This is a short informational notice from CIMA, dated 17 October 2017, describing a 2013 legislative amendment that allows CIMA to enter into memoranda of understanding (MoUs) with EU securities regulators, using a model MoU developed by the European Securities and Markets Authority (ESMA). The amendment was passed in response to the EU's Alternative Investment Fund Managers Directive (AIFMD), which set conditions non-EU jurisdictions must meet before their alternative investment funds (such as hedge funds) can be marketed in the EU.

• AIFMD compliance: With this amendment, the Cayman Islands became compliant with the three AIFMD conditions relevant to the jurisdiction.
• MoU readiness: CIMA had completed the steps necessary to sign cooperation agreements with EU regulators based on the ESMA model MoU.
• Scope of notice: The notice does not itself impose new requirements on funds or managers; rather it reports on a legislative and regulatory cooperation development that underpins the continued ability of Cayman Islands funds to be marketed into the EU under AIFMD's third-country passporting/private placement regime.

No continuing filing or compliance obligations are set out for regulated entities in this notice; it is purely informational, summarizing background on the AIFMD-related legislative amendment and CIMA's readiness to sign MoUs with EU counterparts.

Applies to

alternative investment funds, hedge funds, Cayman Islands funds marketed in the EU