In response to the EU’s Alternative Investment Fund Managers Directive, the Government of the Cayman Islands has passed The Monetary Authority (Amendment) Law, 2013. This Law will allow the Cayman Islands Monetary Authority to enter into memoranda of understanding (MoU, or so-called AIFMD ‘co-operation agreement’) with its EU counterparts, using a model MoU developed by the European Securities Markets Authority. To date only Brazil and Switzerland have entered into the co-operation agreements required in order to market non-EU funds to EU professional investors post AIFMD. Many now expect the Cayman Islands to enter into agreements ahead of the 22 July 2013 AIFMD implementation date but questions remain about the readiness of a number of other offshore fund domiciles.
