Caymans To Create Public Hedge Fund Database, Vet Directors

Jan 18 2013 | 12:39pm ET

The Cayman Islands has long been a haven for hedge funds drawn by its light-touch regulatory environment and, it must be said, the ability to operate relatively opaquely on its white sand beaches. But all of that is about to change.

The Cayman Islands Monetary Authority is set to shine a light on its secretive financial industry, forcing both hedge funds and the thousands of other companies domiciled on its shores to be publicly identified and to list their directors. CIMA is also cracking down on directors, and plans to vet them to ensure their qualifications.

CIMA has sent a proposal for the public database to hedge funds domiciled on the island, part of a consultation process that will run until March, the Financial Times reports. The database would be the first of its kind in the Caymans.

While the Caymans have been criticized by the U.S. and European Union, the changes may actually be the result of demands for increased transparency on the part of investors. A large number of other offshore jurisdictions have recently updated their regulations, CIMA said, including the Bahamas, British Virgin Islands, Jersey, Ireland and the Isle of Man.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note