As the arguable jurisdiction of choice for U.S. fund managers seeking to establish offshore funds, the Cayman Islands is frequently at the forefront of hedge fund industry innovations and developments. See “U.S., U.K. and Cayman Regulators Address Upcoming Areas of Focus, Passporting Concerns and Intra-Agency Collaboration
” (Nov. 17, 2016). In terms of local developments, the Cayman Islands are fast approaching the first anniversary of the introduction of the limited liability company vehicle, as well as confronting dramatic changes to its fund governance practices. At the international level, the potential extension of the Alternative Investment Fund Managers Directive marketing passport to non-E.U. countries and the potential regulatory changes under the Trump administration each has a substantial bearing on the islands’ hedge fund industry. To help our readers better understand these developments and anticipate the future of the Cayman Islands’ hedge fund industry, the Hedge Fund Law Report recently interviewed Hayden Isbister, a partner at Mourant Ozannes and a panel moderator at the 2017 Cayman Alternative Investment Summit. For additional commentary from Isbister, see “Despite Fiduciary Duty Questions, Cayman LLCs Can Offer Savings and Other Advantages to Hedge Fund Managers
” (Jul. 21, 2016).