The Offshore Law Blog

A View From Shanghai: Sunshine Funds On The Rise In China.

 

 

22nd July, 2016

 

By Marc Parrott

 

The Asset Management Industry is one of the fastest growing business sectors in China. Privately managed (non-retail) funds in China, often referred to as ‘sunshine funds’ by local practitioners, have traditionally enjoyed a largely unregulated environment – unlike the mutual funds industry, which is heavily regulated by the Chinese Securities Regulatory Commission (CSRC). Continue Reading

 

 

 

UK Votes To Leave The EU - What Does Brexit Mean For Offshore Funds?

 

 

28th June, 2016

 

By Fiona Chandler 

 

So, the pound’s tanked, world stock markets are in turmoil, Scotland and Northern Ireland are considering whether to leave the United Kingdom so they can stay within the EU and the Prime Minister has announced his resignation. Last week’s vote to Leave the EU has certainly had a profound (and depressingly predictable for those of us who voted Remain) impact on the UK economy and politics already, with a long period of uncertainty yet to come. The financial services industry in the UK is likely to be significantly affected by Brexit, with various international investment banks having now announced that they’re reviewing their operations here, given the uncertainty over whether they will still be able to passport their financial services and products across Europe from London. Continue Reading

 

 

 

 

Cybersecurity 101 - Why Would I Want to WISP?

 

 

6th June, 2016

 

As many of you are aware, there is an increased regulatory and investor focus on cybersecurity in the funds space (just last week the Cayman regulator issued this circular). In this guest post, my friend Erik Kellogg discusses one of the key cybersecurity issues that start up and emerging managers should address. Continue Reading

 

 

 

What Do I Need To Do To Register My Section 4(3) Fund With CIMA?

 

13th May, 2016

 

By Fiona Chandler 

 

If you’ve decided that a section 4(3) Cayman fund is the best structure for your fund (see our earlier blog for an Introduction to Cayman Fund Products), you’ll need to register it with the Cayman Islands Monetary Authority (CIMA) before you launch. The process is well established and fairly straightforward, involving your Cayman lawyers filing the following with CIMA via their online registration system. Continue Reading
 

 

 

Hedge Fund China Summit In Shanghai

 

 

5 May, 2016

 

By Marc Parrott

 

Hong Kong International Airport is a fine airport to be sure, but after five and a half hours sitting in the airport lounge, waiting for my delayed flight to Shanghai to depart, it was beginning to lose its appeal. Continue Reading

 

 

 

Private Placements And AIFMD

 

24th April, 2016

 

By Fiona Chandler

 

AIFMD. Love it or loathe it – and let’s face it, it’s not the most popular law – the Alternative Investment Fund Managers Directive (AIFMD) has changed the way that alternative funds are marketed to investors in Europe. Ultimately this will hopefully allow European and non-European alternative investment funds (AIFs) to be marketed to professional investors in Europe by way of a passport, similar to the way that UCITS funds can be passported round Europe. For now, though, the passport only works for European AIFs marketed by European managers, with non-European AIFs and managers waiting for the European Securities and Markets Authority (ESMA)’s further recommendations on extending the passport to non-European jurisdictions. Your typical Cayman or BVI investment fund isn’t capable of being passported yet and so needs to be marketed using the AIFMD private placement regimes in each country. Continue Reading
 

 

 

New York, New York

 

 

21st April, 2016

 

By Hamish Masson

 

Last month I joined several of my Cayman colleagues in the bright lights of New York for the Funds Finance Association’s snappily named 6th Annual Global Funds Finance Symposium. And yes – we did remember to pack our thermals! Continue Reading

 

 

 

AIMA adds voice to those defending offshore funds

 

13th April, 2016

 

By Natalie Bell

 

I was really pleased to see yesterday that AIMA, the Alternative Investment Management Association, has published a paper which gives a really clear explanation as to why so many of the world’s alternative investment funds are set up in offshore jurisdictions such as the Cayman Islands and the BVI. As the paper comments “What sets offshore funds – and particularly, offshore alternative funds – apart is the combination of tax neutrality, investment flexibility and sophistication allowed by offshore alternative fund structures.” Continue Reading

 

 

 

Why offshore? A lesson from David (and Ian) Cameron

 

 

11th April, 2016

 

By Philip GrahamThe Offshore Funds Blog

 

As we saw today in the House of Commons, David Cameron is quite capable of defending himself over his ownership of shares in an investment fund before he became Prime Minister and so this blog is certainly not intending to act as cheerleader or critic of the points he made. But his circumstances create a valuable “teaching moment” for this blog and for those that question why investment funds are traditionally set up offshore in the first place. Contiune Reading
 

 

 

Calling All Emerging Managers

 

 

24th March, 2016

 

By Oliver Bell

 

Last week I had the privilege of representing BVI Finance, the voice of the British Virgin Islands’ financial services industry, by being a panellist at the Hedge Fund Emerging & Startup Manager Forum in New York. I joined some leading industry experts on a panel focused on how to structure your fund as an emerging manager. As we’ve previously mentioned on this blog, emerging managers form a core part of our BVI funds practice, and this was an excellent opportunity to give some practical advice to those emerging managers in the audience. Continue Reading
 

 

 

The Five Key Ongoing Obligations Of BVI Funds

 

21st March, 2016

 

By Natalie Bell

 

I wanted to write a post on the continuing obligations for BVI funds because if you are thinking of launching a fund in the BVI, knowing what your obligations will be is essential. My challenge was how to do it without boring you all to tears. I think I have managed to capture the obligations in five key headings so, hopefully, I can hold your attention for just long enough! Continue Reading

 

 

 

Cayman LLCs – A vehicle to unlock foreign tax reclaim entitlements

 

29th February, 2016

 

With the highly anticipated Cayman LLC law finally being published in draft, once unobtainable foreign tax reclaim entitlements are expected shortly to be in play for eligible investors whose Cayman fund undertakes a conversion to the new structure (or, in the case of a new launch, initially structures as a Cayman LLC). Most U.S. tax-exempts invest through offshore feeders, traditionally a Cayman limited company (Cayman LTD), to avoid Unrelated Business Income Tax (UBIT) which can be assessed to U.S. resident tax-exempt investors for gains made on leverage, including traditional margin or shorting strategies. Unfortunately, investors in such vehicles do not have access to double taxation treaty benefits, since the Cayman vehicle serves as a corporate blocker and Cayman itself is not party to bilateral tax treaties. Continue Reading
 

 

 

Five Key Ongoing Obligations For Cayman Islands Regulated Funds

 

 

28th January, 2016

 

By Fiona ChandlerThe Offshore Funds Blog

 

Once your fund is registered with the Cayman Islands Monetary Authority (CIMA) it will need to comply with various ongoing obligations under the Mutual Funds Law. Continue Reading

 

 

 

What Should Your Fund Director Actually Be Doing?

 

27th January, 2016

 

By Fiona ChandlerThe Offshore Funds Blog

 

You’ve appointed your independent directors. They seem like good people, came highly recommended, have great resumes and seem interested and enthusiastic about your strategy. Now that you have them on board though, do you know what they should actually be doing? Continue Reading

 

 

 

New Playthings For Cayman – LLCS

 

 

22nd January, 2016

 

By Andrew MorehouseThe Offshore Funds Blog

 

One of the questions we receive regularly from our clients (existing and potential) is whether they can set up an LLC in Cayman. “Hi, my name is Jim and I’d like an LLC please”. This is a natural question for clients in North America as LLCs seem to be the preferred vehicle of choice for almost any purpose and so why should there be any other choice? For example, the vast majority of funds set up in the United States are LLCs, incorporated in Delaware, and every client is familiar with them and how they work. Continue Reading

 

 

 

What Are The Directors' Duties For Cayman Islands And BVI Funds?

 

 

20th January, 2016

 

By Fiona ChandlerThe Offshore Funds Blog

 

There’s been increased focus from the courts and regulators on the duties owed by directors of a Cayman Islands or BVI fund since the financial crisis of 2007-8 and various high profile fund meltdowns. So what duties does a director of a fund actually owe? Continue Reading
 

 

 

Infographic: The Steps To Setting Up An Offshore Fund.

 


 

7th January, 2016

 

By Fiona Chandler, The Offshore Funds Blog

 
If you are thinking of setting up an offshore hedge fund our new infographic which sets out the key steps is just for you. Continue Reading