Cayman meets new EU hedge fund rules says Bush

| 18/05/2010

(CNS): In the wakeof news reports that European Union law makers had broadly approved the Alternative Investment Fund Manager Directive (AIFMD), the premier has said that he believes Cayman already meets the requirement in the new rules to continue doing hedge fund business in the EU. The new EU initiative only allows non EU funds to be marketed there if they meet strict new criteria relating to regulatory oversight, anti-money laundering and countering terrorist financing, compliance standards and TIEAs. McKeeva Bush said that government has already been watching the development of the directive closely and now plans meetings next month to ensure this is the case.

Although further details of the AIFMD are still to be worked out before it goes to the EU Parliament in July for final approval, the premier said in a statement released on Tuesday that Cayman was seeking clarification with regard to its hedge fund industry and this new directive.
 
"We believe that Cayman, on an objective assessment, meets these criteria. However, we are still seeking clarification on the specifics of the process that they will put in place to assess whether the criteria are met,” Bush said.
 
The European Unionhas said the AIFMD is designed to harmonise regulatory standards for all alternative investment fund managers within its scope and to enhance transparency.
 
Some governments, including the UK and the USA, have opposed the draft directive, arguing that the requirements would be onerous and discriminate against non-European funds. The rules require EU funds to comply with restrictions on bonuses, leverage and investment strategies and a number of other regulations. The directive also places conditions on investments in funds from non-EU jurisdictions.
 
“Under the directive, the marketing of funds from non-EU countries would be allowed if certain criteria are met. As it currently stands, these criteria include equivalence in relation to regulatory oversight, anti-money laundering and countering terrorist financing, and compliance standards. They also involve having regulatory and tax information exchange agreements between relevant non-EU and EU authorities, as well as market access for EU based funds,” Bush said.
 
The premier added that since the draft rules were first proposed in April 2009, the Cayman Islands Monetary Authority has been studying them, the responses and counter proposals and considering the possible impacts on the Cayman Islands’ hedge funds industry. “As an extension of that, both CIMA and government representatives have had discussions with various people, including regulators, in the UK and Europe with regard to the proposals,” the premier explained.
 
He said that CIMA’s Managing Director, Cindy Scotland, and her team have been working with Sidley and Austin, recently retained by government as advisors on international relations, to set up meetings between EU representatives and a wider Government-CIMA delegation.
 
“We are targeting those discussions for as early as the first part of June,” Bush said, adding that he would lead the delegation as minister of finance along with CIMA Chairman George McCarthy,Scotland, and the Deputy Managing Director – General Counsel, Langston Sibblies QC. The premier said he would provide more details on the impact of the directive and an update on developments once the meetings had been held.
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Comments (11)

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  1. Anonymous says:

     What a joke. What does he know about finance? 

     

     

  2. Anonymous says:

    Seeing as opinion is clearly divided on this very important issue could CNS ask Tony Travers his opinion as to whether we do or do not currently  meet EU Hedge Funds Rules ? 

    Should be a straightforward yes or no 

    • Anonymous says:

      If you want to ask Mr. Travers anything, ask him whether the EU accepts that Cayman meets all of the requirements as they currently are. Afterall, the EU is sole judge and jury on this one folks.

      Tony’s answer will be, or at least ought to be something to the effect that the EU has given no indication that they do accept Cayman’s regulatory regime as sufficient for compliance with their new directive and plenty of indication that whatever we do, they do not.

  3. tim ridley says:

    It is far too early to know what the final requirements of the Directive will be, let alone whether Cayman will be in compliance on Day One. There is much water yet to flow under the bridge and much lobbying to be done by far bigger fish than Cayman before the deal is finally done. But past experience suggests that the EU will try and find reasons to make Cayman’s life as difficult as possible.Two terms may well be used to push Cayman back…"transparency" and "effective implementation".

    • Anonymous says:

      Tim, you could not possibly be questioning the Minister’s infallible beliefs. That would be outrageous and certainly would justify special new taxes to be paid by former Chairmen of CIMA who have the initials TR.

      Anyone else care to question anything else that El Supremo has stated? Go on – he is looking for ways to pay for next year’s travel.

  4. Anonymous says:

    I’ll believe we comply when I hear it come from Tony Travers mouth.  Anything Bush says is too unreliable or liable to change a few days later.

  5. Anonymous says:

    Way to Go, Mac!

    You keep it up!

  6. Anonymous says:

     If MCarthy and Sibblies have told you that Cayman meets the new EU  rules Bushy  are you  in for a shock when you get to Brussels.

     

    • Hmm... says:

      What makes you think it was McCarthy and Sibblies? Are they the only two people known to provide advice in this area?

  7. Rorschach says:

    XXX does McKeeva Bush know about FINANCE????    Bad enough that he has been galavanting around playing "Business Attractor" for some months without anything to show for it, now he is going to take a "Delegation" to the EU to study the impact of this directive??  If you can’t trust the Chairman of the CIMA and the Deputy Managing Director to tell you what was said, then How the Hell do you think you are going to go and make sense of this??  I too am getting VERY tired of hearing about all these so called "Delegations" that the "Premiere" is leading and taking an entourage on, when every other word out of his mouth, when he isn’t threatening the press, is how BROKE the country is…Right now in Thailand, thousands of citizens are facing DEATH and Imprisonment for standing up and declaring that they will not be manipulated by the Government.  Whilst I do not advocate that level of civil disobedience, that seems to be the only thing that Leaders who believe they answer to no one, seem to fear.

  8. Anonymous says:

    June is a lovely time to travel to Europe.

    Of course it is absolutely necessary for the Premier and a large number of companions to travel to Europe to confirm his "beliefs", which are undoubtedly based on the most profound understanding of the issues involved. After all, beliefs are so much better when shared with friends and family in a lovely foreign venue.

    It is also absolutely necessary to secure this understanding of the new EU rules at the best possible hotels and restaurants. It would be completely inappropriate to merely get confirmation in writing from the EU that the Premier’s beliefs are correct. 

    Um – when exactly did the UK or the EU decide that Cayman’s anti-money laundering rules were equivalent to the EU’s? Everyone else on the planet must have missed that memo.

    Am I the only one that is getting tired of these all expenses paid holidays masquerading as meaningful official travel?