Fund Formation and Management

CIMA reveals deal with Gibraltar in wake of Brexit

The Gibraltar Financial Services Commission (GFSC) has signed an agreement with the Cayman Islands Monetary Authority (Cima) on the oversight of alternative investment fund managers.

The Cayman Islands Monetary Authority (CIMA) has signed a memorandum of understanding with the Gibraltar Financial Services Commission further to the UK’s recent referendum on leaving the European Union, the results of which impacted both territories. CIMA officials said the deal would pave the way for cooperation and exchange of information regarding firms under the Alternative Investment Fund Managers Directive (AIFMD).

CIMA’s managing director Cindy Scotland, signed the deal on behalf of the authority and explained the reasoning behind it. Ms Scotland said that their continuous efforts to secure MOUs with a number of European counterparts is proving to be both satisfactory and fruitful. Europe is an important market for Cayman hedge funds. GFSC is now part of their list of European counterparts.

Both jurisdictions are UK overseas territories that will be directly impacted by the Brexit vote. It is now yet to be seen what lies ahead for both territories as they await the outcomes of the UK and EU negotiations over all of their future dealings in Europe.