The Private Funds Law and the Cayman Islands’ Status with the EU

In February 2020 the EU included the Cayman Islands on its Annex 1 list of non-cooperative jurisdictions for tax purposes; the so-called “black list”. Whilst the Cayman Islands Government had endeavoured to address the EU’s concerns in respect of the regulation of collective investment vehicles through the passing of The Private Funds Law (the “PFL”) and The Mutual Funds (Amendment) Law on 31 January 2020, the laws were only enacted on 7 February.

Related briefings

Recognition and Assistance for PRC Insolvency in Hong Kong

Synopsis A recent case in Hong Kong, has demonstrated both the ability and willingness of common law courts to recognise insolvency appointments made by the courts of the People’s Republic of China (‘PRC’), and to grant appropriate assistance at common law. It is to be hoped that this proven track record will pave the way for easier recognition of common law court appointed liquidators in PRC, where, unlike in common law countries, such recognition is subject to the principle of reciprocity.

Cayman Islands Updated Economic Substance Guidance

Version 3.0 of the Cayman Islands guidance notes (“Guidance”) on the Cayman Islands’ economic substance legislation provides additional assistance in interpreting the International Tax Co-operation (Economic Substance) Law (the “ES Law”).

Enforcement of share charges over Cayman Islands aircraft owning SPVs

The aviation industry has been severely impacted by the COVID-19 pandemic. Although flying has now resumed in a limited capacity, airlines which have already been severely weakened by months of enforced inactivity are now facing a long, slow recovery, and for many the worst is not over yet. We have already seen a number of airlines enter into bankruptcy protection, and more are likely to follow over the coming months as passengers and operators adjust to the realities of flying in the post-COVID era. As a result, financiers and lessors are considering their position and looking at ways that they can improve their rights or enforce their security in a default situation. In particular, there has been an increased focus on the security that a financier would typically take over the shares in a Cayman Islands aircraft owning SPV and how, in practice, a financier can enforce their rights under this share security to gain control of an aircraft from a defaulting owner.

Insurers first to be registered under New Bermuda ISAC Act

The first company and incorporated segregated account (ISA) to be registered in Bermuda under the Incorporated Segregated Accounts Company Act 2019 (ISAC Act) have been licensed as insurance companies. Conyers advised on the incorporation of both the ISAC and ISA and their registration as insurers, working closely with the Bermuda Monetary Authority and the Registrar of Companies.

Recent Regulatory Changes Affecting Companies and Limited Liability Companies

It should be noted that due to recent amendments to the Companies Law (2020 Revision) and Limited Liability Companies Law (2020 Revision) certain additional information will be required to be filed with the Registrar of Companies from 1 September 2020. In addition, such information will be made publicly available online from 1 October 2020 upon […]

Latest Briefings

Food & Drink Update – September 2020

Guidance on the latest food and drink rules, including post-furlough planning and workforce measures manufacturers, Brexit and the workforce – how to prepare for upcoming changes, protecting innovation in the food & drink industry, and more.

Coronavirus business interruption test case – judgment in the “insurance case of the century”

Flaux LJ and Butcher J today handed down judgment in the test case brought by the FCA to explore whether hundreds of thousands of businesses can recover under their business interruption policies for losses caused by the pandemic, in the “insurance case of the century” – the only claim heard under the Financial List Test Case Scheme. Many of those businesses will, today, be celebrating a fantastic win for them.

Cayman Islands Update: Economic substance guidance notes V3 issued

On 13 July 2020, the Cayman Islands Department for International Tax Cooperation (the “DITC”) issued version 3.0 of the Guidance on Economic Substance for Geographically Mobile Activities (the “Guidance”) pursuant to the ES Law (as defined below). This replaces the previous version 2.0 of the Guidance issued on 30 April 2019.

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Watson Farley & Williams (WFW) is installing a thermal imaging camera as part of precautionary measures for its City office opening in August. The thermal imaging camera will screen the main entrance to 15 Appold Street, which the firm says will protect staff and visitors and ensure the former have confidence in returning safely to […]

Travers Smith

Travers’ PEP drops 20 per cent ending 10-year growth streak

Travers Smith’s average profit per equity partner dropped back down to £1m over 2019/20, as revenue fell for the first time in a decade. The latest financials are a setback from 2018/19 when Travers’ revenue had increased 11 per cent from £147m to £162.5m, while average profit per equity partner saw a 4 per cent uplift […]

Simmons & Simmons

Simmons promotes six new partners after Covid delay

Simmons & Simmons has announced its latest set of partner promotions, after opting to defer the decision earlier this year. The small collective of six marks a huge contrast to last year, when the firm promoted its largest round ever. In 2019, 15 lawyers ascended to the partnership, including eight in its City office. It […]

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Freshfields’ PEP growth stalls as turnover nudges up to £1.5bn

Freshfields Bruckhaus Deringer‘s revenue crept up 3 per cent over 2019/20, as it became the last magic circle firm to announce its financial results for the past year. While the firm’s turnover has now reached £1.52bn, its net profit has, however, dipped to £685m from £688m. Average profit per equity partner (PEP) stood flat at […]

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