The US$50b fraud by Bernard Madoff’s investment advisory and broker-dealer firms had an equally outsized list of red flags. Several ways in which Madoff carried out his operations were not only highly unusual but also gave him more discretion over his operations and subjected his activities to less scrutiny than a typical investment adviser or broker-dealer. Notably
This article considers recent trends in the hedge fund industry, as seen from the Cayman Islands legal perspective, following the upheaval of the recent global economic downturn.
Reflecting on the recent global financial crisis one can’t help but wonder what lessons have been learned from the experiences of many of the world’s hedge fund participants.
Due in large part to the financial crisis that has plagued the global banking system, letters of credit (LOCs) continue to be more expensive and harder to find. For those that are wondering “When are LOC fees going to go down?”
To answer this question, it is necessary to have a brief look first at the features of QIFs and SIFs to try to identify what, if any, advantages they offer over Cayman funds; and secondly to consider the expected treatment of QIFs, SIFs and Cayman funds under the AIFM Directive. This inevitably involves some crystal ball-gazing as, at the time of writing, the EU legislative sausage-making process in the trialogues has not concluded.
Over recent years, the Cayman Islands has proven itself an increasingly popular jurisdiction of choice for the incorporation of companies owned or operated by parties in Asia, with the following being some of the key reasons for such popularity.