Cayman Islands Monetary Authority : CIMA to Sign Memoranda of Understanding with European Securities and Markets Authority Members

(Grand Cayman – Thursday, 30 May 2013) Cayman Islands Premier, the Hon. Alden McLaughlin, has expressed his satisfaction that the Cayman Islands Monetary Authority (CIMA) will soon sign Memoranda of Understanding with member organisations of the European Securities and Markets Authority (ESMA). Mr. McLaughlin said, “The international financial services sector is a critical pillar of the Cayman Islands economy. These MoUs will enable the continued marketing of Cayman Islands hedge funds throughout the European Union. Europe is a significant market for us, since approximately 23% of Cayman-regulated fund assets are managed by a European Manager.”

ESMA’s Board of Supervisors approved the signing of the MoUs with CIMA at a meeting of the Board on Wednesday, 22 May, 2013. The MoUs relate to the Alternative Investment Funds Management Directive (AIFMD), which will require that certain conditions be met before non-EU countries can market alternative investment funds – such as hedge funds – in the EU. The AIFMD is to be implemented across Europe from 22 July, 2013.

“With the enactment of the Mutual Funds Law, the Cayman Islands has become the leading jurisdiction for funds”, stated Minister for Financial Services, the Hon. Wayne Panton. He added that, “despite continued volatility in the global financial markets, the Cayman Islands funds industry has performed exceptionally well, with 10,932 funds regulated by CIMA as of 31 March, 2013. The signing of the MoUs with ESMA members is an important step in maintaining our competitiveness in the European market.”

Twenty EU authorities have already signed the MoU with CIMA, in the margins of the meeting of the Board of Supervisors of ESMA on Wednesday. On the same day, the Board of Supervisors of ESMA approved MoUs with 33 other non-EU authorities.

CIMA Managing Director, Mrs. Cindy Scotland, will sign the MOUs on the Authority’s behalf. She said “CIMA has been in discussion with ESMA on the model requirements since early 2012, and we are very pleased that arrangements are being put in place which will enable the Cayman Islands to remain a preeminent jurisdiction for hedge funds.”