In December 2017, the Cayman Islands implemented an administrative fines regime (Regime) in the wake of the introduction of the Monetary Authority (Administrative Fines), Regulations 2017 (as amended, the Regulations). In June 2020, the Regulations were amended to endow the Cayman Islands Monetary Authority with the power to impose administrative fines for a wide variety of breaches of Cayman laws, regulations and rules – whether the breach is an offence under the relevant law and, on occasion, over and above any other penalty that may be applied. In a guest article, the second in a two-part series, Mourant partner Sara Galletly and associate Alastair Lagrange outline the key considerations relevant to open-end Cayman funds and their managers, identifying some of the more common breaches that can result in fines, so that those breaches can be avoided. The first article reviewed the current scope of the Regime and looked briefly at the nature of the Regime and the procedures for imposing and appealing fines. For additional commentary from Mourant partners, see "Despite Fiduciary Duty Questions, Cayman LLCs Can Offer Savings and Other Advantages to Hedge Fund Managers" (Jul. 21, 2016); and “Redeemed Investors Have Priority With Respect to Payment from Liquidating Cayman Islands Hedge Fund” (Sep. 10, 2015).