CIMA-Sponsored Survey Highlights Hedge Fund Industry Views on Cayman Islands Corporate Governance Practices and Suggested Reforms

As part of its corporate governance reform process, the Cayman Islands Monetary Authority (CIMA) recently surveyed hedge fund managers, investors, directors and service providers regarding their views on corporate governance at Cayman Islands hedge funds.  See “Cayman Islands Monetary Authority Introduces Proposals to Apply Revised Governance Standards to CIMA-Regulated Hedge Funds and Require Registration and Licensing of Fund Directors,” Hedge Fund Law Report, Vol. 6, No. 4 (Jan. 24, 2013).  Specifically, the survey solicited the views of respondents on what elements comprise robust corporate governance at a Cayman fund; the strengths and weaknesses of Cayman boards; the adequacy of the current Cayman governance regime; the types of information that would assist in evaluating the robustness of a fund’s governance standards; and the areas in which Cayman corporate governance standards can be improved.  Among other things, the survey also drilled down on issues such as whether there should be a limit placed on the number of directorships that may be held by a single director and whether it would be beneficial to require disclosure of the total number of directorships held by each director.  This article summarizes the noteworthy findings from the survey.  For more on Cayman corporate governance issues, see “Speakers at Walkers Fundamentals Hedge Fund Seminar Discuss Recent Trends in Hedge Fund Terms, Corporate Governance, Side Letters, FATCA and Cayman Fund Regulation,” Hedge Fund Law Report, Vol. 5, No. 48 (Dec. 20, 2012).

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