Regulatory Advisory:
Cayman Islands Government Proposes Registration and Licensing Policy for Fund Directors
04 April 2014

On 21 March 2014, the Cayman Islands government indicated plans to institute a new registration and licensing policy for Mutual Fund Directors of Funds that are regulated by the Mutual Fund Law (2013 Revision) as well as registered excluded persons under the Securities Investment Business Law (2011 Revision).

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Industry Advisory:
Role of the U.S. FATCA Responsible Officer
01 April 2014

The FATCA Working Group has issued an industry advisory on behalf of the Ministry of Financial Services, Commerce & Environment.

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2014 Hedge Fund Industry Events Calendar
27 February 2014

Below is a list of Hedge Fund Industry Events scheduled in 2014.

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Focus Administration Limited adds another member to their growing team
29 September 2013

On June 30, 2013 Yuko Kawahara joined Focus Administration Limited as Fund Administrator.

Focus Administration Limited launches re-brand
28 September 2013

Focus Administration Limited has enjoyed steady growth with both existing clients and new client business over the last 18 months. During this time of expansion, Michelle Cullen, Founder and Managing Director of Focus Administration Limited, also embarked on a re-branding campaign for the Focus website and marketing materials.

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American Bar Association- Pros and Cons of Offshore Centres January 16-17, 2014

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Everything Offshore- Funds in 2014, New York

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Everything Offshore- Funds in 2014, San Francisco

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Where to domicile?

Two of the most important considerations when choosing a domicile are: 1) the quality, experience and insight of the service provider; and 2) the appropriateness of the regulatory regime.

The Cayman Islands have built a solid reputation as am international financial services center in large part because of the extraordinarily high quality of the service providers that reside in the jurisdiction: Barristers/Lawyers, Audit firms, Independent Directors and Hedge Fund Administrators. An example of this quality is clearly stated in Immigration Law, which states that only accountants with professional designations may be Fund Administrators, providing a guaranteed level of expertise not required in other jurisdictions.

The Cayman regulatory environment is founded on a sensible, risk-based model that is more flexible and business-oriented than other jurisdictions; but, is also the strictest in terms of due diligence and 'Know-Your-Customer' (KYC) requirements. Cayman-based Fund Administrators are full-service, performing this investor due-diligence on behalf of the Fund, as well as providing security for the Fund and its other investors

What to look for in an Administrator?

One of the most important decisions made by a Hedge Fund is that of choosing the Administrator. A good Alternative Investment Fund Administrator acts as the eyes and ears of the Fund and is often the first to be aware of anomalies or challenges.

When speaking with Administrators, ensure that you are comfortable with their answers to the following questions:

  • What technology platforms are you using?
  • What is your Disaster Recovery Plan?
  • Is your firm affiliated with a law firm, bank, Prime Broker, or any other type of service provider?
  • How many Funds do you currently service?
  • What are your technological and human resource capabilities for servicing our Fund(s)?
  • Who will be my day-to-day point of contact and how will this communication take place?
  • Describe your financial controls, especially pertaining to money flows and what safeguards are in place?
  • What AML (Anti-Money Laundering) services do you provide?
  • What quality controls do you have in place to ensure timeliness and accuracy?
  • Can you offer every service we need, including Fund Accounting, Administration, Transfer Agency, Middle Office, Custody, Directors, Foreign Exchange (FX), and Cash Management?
  • Can you provide client references

Focus Administration Limited is licensed and regulated by the Cayman Islands Monetary Authority and must complete 'fit and proper' tests that provide surety and security to a Fund.