Quarterly client update: Cayman Islands — May 2014: the Contracts (Rights Of Third Parties) Law 2014; the Exempted Limited Partnership Law 2014; and more

The Contracts (Rights Of Third Parties) Law 2014
The Contracts (Rights of Third Parties) Law 2014 came into force on 21 May. The law provides a mechanism by which contracting parties can give enforceable rights to persons who are not party to the contract. The regime is ‘opt-in’ so third parties cannot be inadvertently given such enforceable rights.

The Exempted Limited Partnership Law 2014
The Exempted Limited Partnership Law 2014 has not yet been brought into force. The reason for the delay is unclear, but is likely due to the need for additional regulations in connection with the new regime for registration of foreign limited partnerships.

The Directors Registration And Licensing Law 2014
This recently passed law has been published but its provisions are not yet in force. The law may be brought into force, in part or in whole, at any time by Order of the Cabinet. It introduces a registration regime for directors of hedge funds registered with the Cayman Islands Monetary Authority (CIMA) under the Mutual Funds Law (as revised) and also for directors of companies registered with CIMA as excluded persons under the Securities Investment Business Law (as revised). It is not yet clear what information will be required from such directors or what the registration fees will be. The law also contains separate licensing regimes for professional directors, who serve on 20 or more relevant boards, and for corporate directors…

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