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The Cayman Islands continue to be at the forefront of the implementation of global standards for transparency and regulatory oversight in respect of the financial services industry.
While the primary responsibility for implementing regulatory requirements concerning Cayman Islands investment fund structures falls to the relevant fund manager, a knock on effect is that prospective lenders to such funds must now also verse themselves on the relative importance of certain Cayman Islands regulatory measures to their due diligence and lending processes.
This article addresses what Cayman Islands regulatory requirements lenders in the fund finance arena should be aware of and breaks down our views as to what questions can reasonably be asked of borrowers as part of the due diligence process. The below is based on the most frequent scenario encountered – which is the ‘fund’ vehicle being a Cayman Islands exempted limited partnership and the ultimate general partner of such vehicle being either a Cayman Islands or Delaware incorporated exempted company or limited liability company.
To continue reading full articles in PDF format:
“The New Cayman Regulatory Landscape – What Questions Should a Lender Ask?”