Alternative Investment

FAQs: Establishing a Fund in the Cayman Islands or BVI & Details on Updated Regulations

Our clients often have questions about the advantages and differences between establishing a fund in the Cayman Islands or BVI (British Virgin Islands).

In fact, recently regulations have changed in the Cayman Islands, so there is no longer an exemption offered for new and existing funds.

In order to help our clients understand the differences between establishing a fund in the Cayman Islands vs. BVI, our team would like to share a presentation from Harneys, a leading international offshore law firm, to help answer the most frequently asked questions our clients have.

The presentation covers:

• The benefits of setting up a fund in Cayman and BVI
• Costs associated with various types of funds, including structure costs, regulator costs and legal costs
• Details on Cayman 4(3) funds, Cayman 4(4) funds, BVI Professional Funds, BVI Private Funds
• Ongoing regulatory obligations of Cayman and BVI hedge funds
• FATCA & CRS
• Cayman Data Protection Law
• Regulation of closed ended funds in Cayman and BVI

Clients and Alternative Investment professionals are free to review this document to understand more about these topics. If you have any questions, please contact Steve Vlasak, Business Development Partner in the Alternative Investments practice. Our team can help funds utilizing many different strategies of any size, including those establishing a fund in the Cayman Islands or BVI.

You can also learn more about the changing regulations in the Cayman Islands in our other blog posts:

• Cayman Islands Legislation: Changing Requirements for Private and Mutual Funds
• New Cayman Legislation for Private & Mutual Funds: Detailed Summary